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from companies similar to yours. 2. Underestimating
A rushed or careless migration can break trust and result in under- or overpayments.
the Role of Technology Infrastructure
cloud, offers modern integration capabilities, and can easily scale with your business. Ensure their team performs a tech fit analysis upfront. 3. Poor Change Management Outsourcing payroll is a fundamental shift that affects stakeholders across departments - from HR and finance to IT and employees. Poor change management turns the transition into chaos. Common Missteps: - No Stakeholder Alignment: Departments aren’t clear on their roles during the transition. - Training Gaps: Teams don’t understand the new workflows or where to find key reports. During the Transition
- Lack of Transparency: Employees are left in the dark, resulting in confusion or mistrust. Tip: Treat the transition as a change management initiative, not just a system switch. Create a communications plan, establish a training calendar, and appoint project champions to shepherd the change internally. 4. Data Migration The most complex part of switching to a new payroll provider is accurately migrating historical and in-flight payroll data. A rushed or careless migration can break trust and result in under- or overpayments. and Testing Oversights
A transition to outsourced payroll is only as strong as the system that underpins it. If the provider’s platform lacks flexibility or interoperability, you may face data bottlenecks and operational headaches. Common Missteps: - Lack of API or Integration Support: If the outsourced provider’s platform doesn’t integrate with your ERP, time tracking, or HRIS, data transfer becomes manual and error-prone. - Not Cloud-native: Systems that aren’t cloud-based often struggle with accessibility, security, and scalability. - Outdated Architecture: Legacy tech limits automation, slowing down the payroll cycle. Tip: Choose a provider whose platform is true
Common Missteps:
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GLOBAL PAYROLL MAGAZINE ISSUE 12
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