The good news is you’re not using manual processes anymore to manage your payroll: you’re using payroll software instead! The bad news is the software you’re using might not be the most suitable for your business. In fact, you could actually be overspending, or worse, underperforming simply by choosing the wrong payroll management platform! Fortunately, we’ve created this shortlist of things to check that will help you determine if it’s time to step away from your current payroll provider.
Price
Everyone wants to save money where possible, so it should come as no surprise that trying to save money is the most popular reason for people to switch payroll providers. However, before taking a look at alternative providers, we recommend taking a look at your own provider’s current offerings first.
Are they offering a lower price than the one you’ve been grandfathered into? Are you currently getting a discounted price? Once you’ve determined if your current provider is ripping you off or not, then you can start looking at alternative provider pricing for similar services.
Inefficient or Ineffective Operations
The main purpose of payroll management software is to streamline the entire payroll process. If your current system isn’t doing that, or it’s processing at about the same speed as a manual approach, then this is a clear indication that it’s time to switch providers. Some platforms overcomplicate their systems, so while managing payroll may be simple in theory, the actual process is a bit too labor-intensive.
Fortunately, there are many companies that offer easy-to-use, streamlined payroll management platforms. If you’re struggling with your current platform layout, there’s a good chance that you can find a more manageable alternative from just a quick Google search.
Payroll Features
Feature offerings remain relatively the same across all payroll providers, but the ones that are available to you will vary by plan tier. Some providers may offer more features at a lower-tier plan than others, meaning if you’re currently using a top-tier plan, you might not need to if you switch.
When considering alternative providers, a good practice is to look at the current features you’re paying for right now. Do you use all of them? If not, you might not need a top-tier plan; a mid-level plan may be able to meet your needs instead. Check to see if your current provider offers a cheaper plan with the same features. If not, consider an alternative provider that does.
Integration Options
Standalone payroll solutions are certainly effective, but you should opt for complete payroll solutions when possible. These solutions automate your HR tasks in addition to your payroll process, allowing you to downsize the staff of both departments (thereby saving money!).
They also integrate data between the departments, which increases overall productivity by reducing processing time. Employees of both departments will have access to a unified database that updates in real-time, eliminating the need to request information from an external department.
Self-service Options
When you’re searching for a new payroll platform, consider self-service options a requirement! These are extremely helpful, enabling employees to manage their own HR & payroll needs without relying solely on assistance from the HR/payroll department. Common self-service features include the ability to view past pay stubs, track hours, manage benefits, and request time off within the portal.
If your current benefits offerings are being underutilized, offering self-service options could be a great way to change that. Employees are much more likely to take advantage of the available benefits when they don’t feel rushed or pressured to make a decision.
Summary
As you can see, there are a few different indicators that it might be time to switch payroll providers. While there isn’t a single payroll software solution that will work best for every business, there are specific providers that work better for different businesses.
By taking a second look at your current system, identifying any weaknesses, and comparing it to the competitor’s offerings, you can definitely increase the overall effectiveness of your business with minimal effort. Who knows—you might be able to save some money as well!