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4 signs your payroll system needs an overhaul

When is the right time to update your payroll system? Any change of software and processes will cause disruption in your team, so you must pick a good time to implement any changes so you can avoid mass disruption across your business. 

More often than not, payroll and business leaders won’t seriously consider overhauling a payroll software tool until they’re at a crisis stage with their current software. The old saying “if it ain’t broke don’t fix it” is very apt here.

Your payroll services and technology might not be broken in the traditional sense of the word but as your company shifts, grows and changes it can become less suited to your needs and end up causing you more headaches than it’s worth.  

Watching out for the warning signs that your payroll systems may need an overhaul is a great way to be proactive about your payroll software management. Instead of waiting until the last minute to update your payroll software, you can take your time, research your options and select a new payroll platform that can help you scale, automate and improve your productivity. 

In this article, we’ve listed 4 telling signs that your payroll system needs an overhaul. If you’re consistently spotting 2 or 3 of these in your payroll software and processes, it’d be wise to review your tools and see if there’s a better one on the market. 

If you are struggling to manage your payroll processes you could consider working with an outsourced payroll provider. Payroll outsourcing is a good way to remove the stress and pressure of running payroll from your business. Phase 3 offers payroll outsourcing services, you can find out more here.

1. You’re always playing catch up with last months payroll

The payroll department works in a cycle and everything revolves around payday. If your team isn’t processing payroll data for new starters, they’re manually changing data for existing employees or performing their month end reporting. 

The work never stops and it can be easy for teams to get overwhelmed. As workloads increase it becomes more and more likely that employees will make errors or miss deadlines. When that happens your business could end up being fined.

When your team is overworked and under pressure and they’re always working to reduce a never ending backlog of human errors, incorrect data entries and payroll mistakes it’s a sign you need to review your processes, tools and software.

2. Your company’s growth is causing a payroll headache

All companies want to grow. Everyone wants to be successful right? Growth brings more revenue to a business, more security and new, excited employees. But it can have its downsides too. 

As companies move from startups to SMEs through to enterprise organisations the demands and requirements expected of their departments change. Every team in a business must adopt new working practices and processes as a company grows and payroll is no different. 

The procedures and payroll software you were using as a 10 person startup most likely won’t be suitable when you’re trying to manage the payroll of 200 employees and 50 freelancers.

If you’re noticing your current payroll processes or software is struggling with an influx of employees, it’s a clear sign that you should start exploring new payroll software.

Finding a payroll platform that is robust and scalable will set your department up for success in the face of continued growth. 

3. Is your payroll team tied to a desk all day?

In the 21st century your payroll team should be out and about in the office. They should be helping colleagues understand their payslips, explaining how tax works to new starters and discussing pension contributions with peers. 

They definitely shouldn’t be tied behind a desk all day just to do their job. With the wonders of wireless technology at our fingertips your payroll team should be empowered to work on the move.   

Can they access the tools they need to do their jobs remotely? Or do they need to be in the office to import email and export payroll data?

Giving your payroll team the ability to access your payroll platform remotely encourages them to work more closely with other teams in your company. It helps break down the barriers between payroll and other departments and gives the rest of your company a greater appreciation of the work payroll does.

So, if your payroll team is stuck in the office all day or behind a desk, unable to meet with and collaborate with colleagues in other departments, that’s an indication you need to review your payroll tools and processes.  

4. Keeping up with compliance is a nightmare

Employee regulations and payment law never stands still. There are always new rules and legal revisions to keep an eye on. Failing to adhere to a new change in the law could lead your business facing hefty fines.

But with so many things to keep track, it can be easy to forget to check the latest government guidance regarding payroll law. Staying up to date with changing compliance and legislations is a nightmare and a full time job.   

If you’re constantly finding yourself on the wrong side of compliance issues and incurring repeated fines then that’s a clear sign you need to review your payroll systems and give them an overhaul.

Are you struggling to find the right payroll software for your company?

Finding the right payroll software for your company and department can truly revolutionise your payroll process. It can help eliminate human error when running payroll and give your staff the tools and support they need to excel at their jobs.   

Knowing where to start when searching for a new payroll tool can be tricky but Phase 3 is here to help. We’re a payroll and HR consultancy firm that works with payroll teams to help improve their processes, increase their productivity and help them onboard new software. If you’d like us to help your payroll team you can contact us here

We also provide partial and fully outsourced payroll solutions for businesses struggling to keep up with their payroll workload. You can find more information about that service here

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