Outgrowing Your Payroll Process?

Tips for Successful Payroll Implementation

Are you outgrowing your current payroll process? Do you need your payroll process to integrate with other business functions? Do your departments need help communicating efficiently and effectively when it comes to payroll? If you can answer any of these questions with a “Yes” it may be time to implement a new payroll system.

Successful implementation is key to paying your employees on time and maximizing their productivity and performance. This can be a daunting task, so we will be providing you with seven steps to make implementation as streamlined and successful as possible.

#1: Choose the Right System

Choosing a payroll system that is right for your company can be an exhausting task. The first place to start is by assessing your company’s internal needs. Ask yourself these questions: Does your payroll department have clear and secure communication with other departments, such as HR and Finance? How much time is spent on the manual process? What is the projected growth of your company and future needs? Does your payroll department accurately pay employees, make tax deposits, and follow compliance standards? Can less time be spent on manual processes and, therefore, eliminate human error?

Once you have answered these questions, find a vendor that suits your needs. You want someone reliable, trustworthy, and supportive. Look extensively into their reputation and the reviews of their employees. Positive employee reviews can point to how stable a company is, and a good reputation is an excellent indicator of how professionally the company operates. Choose a vendor who is highly rated. Consider your budget when choosing the right system. Determine what you can afford and plan accordingly.

#2: Outline Your Goals and Timeline

Your ultimate goal, when implementing a new payroll system, is to have a successful first payroll. To do this, you will need to make a clear and detailed timeline or roadmap. Once you have done this, there should be little room for change. A plan with too much flexibility can be confusing and frustrating for you and your employees and can make it difficult to see where the project is headed. Plan assessment dates along the way and make any changes if necessary, but overall, your roadmap or timeline should be set with clear expectations and milestones. Create a checklist to complete when these milestones have been reached so you can track your progress.

#3: Create a Team

In order to successfully implement your new payroll system, you will need a team. Your team should consist of an Implementation Specialist and a Project Manager who will represent the best interest of your company and will take ownership of the project. A project manager with strong management skills is a vital part of this team.

It is crucial to make sure that employees selected to support the process have the ability and the time each week to work on payroll implementation. Time-sensitive tasks are the name of the game. If the employees you chose cannot complete tasks in a timely manner, find another candidate for the position.

#4: Focus on Clear Communication

Smooth and successful implementation is dependent on clear communication. Consistency and timeliness with communication is key to successful communication. Let your payroll staff ask questions and address concerns to prevent small issues from escalating. Be clear and concise about the objectives and reasons behind the implementation. Take time to explain to those who do not see a need for change: you need everyone in agreement in order for this new process to run smoothly. Implementation is a great time to review current communication processes and allow for realignment to happen.

#5: Train Your Employees

This new system is not just new to you, it is new to all of your employees. Therefore, you must make sure everyone, including managers, knows how the new system works so they can take full advantage of the new system. When deciding on the best training for your employees, live training is far more beneficial than recorded training. Retention is significantly increased during live training, and your employees have the opportunity to ask relevant and timely questions and have them answered immediately. Improvements can be conveyed clearly during live training, and your employees will understand the functionality of the new system. Another benefit is that new system features can be discovered during live training.

During employee training, it is vital to document the new process- we cannot stress this enough! Documenting all the steps of the new system will enable your team to know the ins and outs of the system, and everyone will be on the same page in knowing who is responsible for which task when within the process. This is also a great time to note any improvements and streamlined functionality the new system has made for your company and employees.

During employee training, generate reports to capture data within the system. This is a great way to catch errors before testing the new system.

#6: Test the New System

Once training is complete, it is time to test the new system. The goal for the test run is to make sure as many problems are caught before the payroll goes live. A great way to do this is to run parallel tests of the system before the go-live date of the newly implemented system. Have a checkpoint system for the data in place: gather the required information, clean up the data, and document the new process. Your Payroll Specialist can help review and validate data to ensure accuracy during the test run. They have been trained to look for any errors in the system during implementation, and this is vital during the test run.

#7: Go Live

After you have completed all six steps, it is time to go live! Once you successfully go live on your first payroll, it is time to evaluate. Address any challenges that occurred or mistakes that were made. Search for areas of improvement and communicate them to your team. Whatever issues arise in the beginning stages of implementation, consult your vendor in order to make sure the next payroll that goes live has the best experience and outcome.

Implementation can be an overwhelming process. Cornerstone Payroll Consulting has years of experience with implementations, project management, and training. Contact us for more information.