Feature topic - Mastering software
...speeding up the average time it takes to process payroll, or helping to significantly reduce the frequency of overpayments...
is doing, so knowing how you would manually carry out the calculation helps too. That way, if an employee asks if a payslip figure is wrong, you can say something more reassuring than ‘computer says no’. When should organisations look to upgrade or change their software? Richard Rowell: Constantly. The answer here has probably changed this year though. Major compliance changes in areas such as holiday pay and the CJRS calculations have highlighted marked differences between vendors in terms of how quickly they can react and bring solutions to market. The historic review patterns of once every three to five years may no longer be relevant for your business. You need the right software to deliver the services you want to deliver in the short-, medium- and long-term. You should be listening to the needs and wants of your customers and their employees. You should constantly be reviewing how well your existing software meets your needs. As the old Aubrey de Grey quote goes, “Don’t cling to a mistake just because you spent a lot of your time making it.” However, a change in software isn’t one to be taken lightly. The costs of software alone will not be the only factor. The cost of conversion from one system to another and training for employees will probably out-shadow the cost of the software itself. Investing in software is a major decision for any payroll outsourcing business.
CB: Quite simply, if your payroll systems aren’t working for you then you need to change them. This might be for a variety of reasons. If you’re undergoing internal changes, you’ll need software that can align with the new structure. If you want to connect payroll and HR systems internally, you’ll need an interface that can facilitate this. If you’re growing or developing your business and entering new geographies, you’ll need software that can support you in managing payroll globally to remove the complexity of multiple providers and help streamline processes. Another significant impetus behind changing software is cost. It’s the same as switching energy providers: if you think you’re paying too much for your payroll software, you might want to shop around. However, it isn’t as simple as going for the lowest cost. You must not compromise on the quality of delivery to your employees for the sake of cost, or you’ll end up paying in the long run. PG: It is always a challenge to change payroll software and of course the time most organisations look to change or upgrade is at the end of the tax year. This tends to work for most organisations as you can start the new tax year fresh and hopefully with clean data!
The other time is maybe if the change of software is been driven by a different part of the organisation, such as finance or accounts who may want to align that change to the end of the company financial year, not a tax year. A lot of people think changing is too arduous or risky and so they stay longer with a software that may no longer meet their needs. I do suggest a regular review – maybe every two years – of your existing software and what is available. There are so many changes going on, particularly with cloud software and integrations into different services such as timesheets and employee portals, which can ultimately save time and securely transfer data. J R-W: There are several tell-tale signs that you should look to upgrade or change your software. The most obvious sign is if your software is actually adding complexity to the payroll process rather than making it easier. Another sign, especially for those at decision-maker level, is if the software isn’t proving to be cost efficient. It is not uncommon for providers to charge extra for functionality that many payroll teams would expect to come as standard; for example, tools to help process ‘Alabaster’ [for statutory maternity pay] and holiday pay. Payroll software should deliver measurable cost efficiency in other ways, including by speeding up the average time it takes to process payroll, or helping to significantly reduce the frequency of overpayments. It is also important, especially during the current pandemic crisis, to assess whether your payroll software is flexible enough to accommodate changing working patterns. In particular, payroll teams that have traditionally relied on on-premise software may find they now need to move to more agile, cloud-based software in order to adapt to the ‘new normal’ of remote working. If payroll still feels disconnected from the rest of your functions, this may be another sign that you need to change software. This is because many organisations are rapidly moving towards
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| Professional in Payroll, Pensions and Reward |
Issue 64 | October 2020
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