Switching to a new payroll system can be a complicated process. A smooth implementation can go a long way toward helping you make the most out of your payroll system as quickly as possible. There are some common pitfalls that could derail your implementation and how you can avoid them.
#1: Failing to Plan Ahead
Any software implementation requires a plan before the process starts and your new payroll software is no exception. Failing to create a plan before implementation starts could result in the interruption of employee productivity, lost data, and more. This plan should include the following:
- Which staff members will facilitate the implementation
- Who will be affected by the implementation process
- Who is responsible for overseeing the implementation
- How to access data from your previous payroll system
- Timeline of the implementation
Before you start the implementation process, you’ll need to consider who will be impacted, how you’ll get the data from one system to another, and who’s going to be responsible for what. Make sure that your plan is flexible, however, because the unexpected may occur, and too rigid a plan won’t accommodate any changes.
Tip: Ask Your Payroll Vendor for Advice
The payroll vendor has undergone countless implementations of their software. This means that they’re the experts in what you might run into. They should be able to help you plan and let you know if there’s anything you should be aware of.
#2: Not Protecting Your Data
One of the most important things you need to do in adopting a new payroll system is to maintain all of your pre-existing data. If you don’t take steps to ensure the integrity of the data coming from your old system, you might end up losing it all. It’s important to make sure that how you transfer the data into the new system will give the software good, clean data. Your new payroll system can only ensure accuracy if you give it accurate data in the first place. An error at the beginning could quickly snowball into a much larger problem later on.
Tip: Perform a Data Audit
Before you import any data into the new payroll system, perform a very thorough audit. It’s vital to ensure that all of your data is completely and 100% accurate before you begin importing anything into the new system. A brand new system is a fresh start and you don’t want to preserve data issues that you had with the previous system.
#3: Importing Unnecessary Data
There’s some data you’re legally required to keep for a certain period of time. However, not all data is going to be needed forever. While you’re auditing your data, you should take the time to identify what you can safely delete and make sure that you don’t clog up your new system with old data that you don’t need.
Tip: Check Legal Requirements
It’s essential to remain compliant with any legal requirements pertaining to data storage. Before you start transferring data, double-check what you’re required to keep, and then don’t import anything older than that into your new system. To be safe, you could keep older data backed up elsewhere but you wouldn’t need it slowing down and complicating your new system.
#4: Using the Default Settings
Most payroll systems can be customized to your organization’s own unique needs. It may be easier during the implementation process to just keep the settings the same, but that will make customization harder later on.
Tip: Customize Your Payroll Software First
Customization should be done early in the implementation process. That way it’s set up the way you need it to be before you start adding data to it and training users.
#5: Forgetting to Map out Integrations
Before you even purchase a new payroll software system, you should make sure that it integrates with all of your other software. Having to manually enter data into multiple systems takes a lot of time and increases the risk of human error. Too many people discover partway through the implementation process that the new software won’t actually sync with their other systems.
Tip: Use a Software Match Tool
When you’re searching for new payroll software, try using an online software match tool like Matchr. Our tool asks specific questions about your needs, including about integrations that you’ll need. That way, you can create a shortlist of possible payroll software platforms that only includes ones with the integrations you’ll need.
#6: Skipping the Testing Stage
The final stage of payroll software implementation before getting users involved is testing. While it’s an important step in the process, some who are over-eager to get started with their new system may either shorten or skip this stage altogether. That’s a mistake it’s essential to avoid. Testing is how you discover issues like integration failures, incorrect data, or other changes that will be needed to get started.
Tip: Run Both Payroll Systems Together
Keeping your old payroll system live and running while you test the new one is the best way to ensure an accurate handover. You’ll continue with a known working system while you test the new one and you can compare the data between the two to ensure accuracy.
#7: Under-Training Employees
Another common mistake is not training employees on how to use the system. Not all employees will be using the HR payroll system as much as others, so some may need less training than others, but will still need to know how to interact with it. HR professionals, those responsible for running payroll, or otherwise maintaining the system will need much more training.
Tip: Train Everyone
If your payroll system has an employee portal where they can check their pay stubs and other information, they’ll need some amount of training in the software. Don’t just assume everyone will figure it out. You’ll need to make sure they know where to go and what they can do within that portal.
