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Top 7 reasons people switch payroll processors

April 27, 2017

By Tracey Lueken-Burds, CPP, Partner

If your human capital management (HCM) system leaves you struggling with multiple entry points, expensive add-ons, or poor customer service, it could be time to consider a change. Changing HCM systems can be a daunting and overwhelming task, not to mention the time investment it takes to go through implementation; but, the payoff can be extraordinary in time saved and issues won.

Top seven reasons people switch their payroll provider.

1. Multiple entry sites for employee data – If you are using separate systems for payroll, HR, benefits, and time and attendance, you may be struggling with messy data. Employee life events, changes in status and any other assorted reasons can require updating multiple systems with the latest information. When you’re bouncing between systems, it can be easy to enter incorrect data in one or forget to update another. An all-in-one HCM system is the best solution for a business trying to manage multiple systems. With a single database, those life changes become a breeze, and you can rest easy knowing your data is correct.

2. Confidence in reporting – Some HCM systems simply cannot provide all the information you are looking for. If you are struggling with an inadequate system, you may be constantly requesting specific reports from your provider and subsequently encountering additional charges. Additionally, when you are working across multiple systems, it is easy to miss key updates and therefore affect your reporting. Having a system that meets your needs and houses consistent data can help you gain confidence in your reporting.

3. Price has gone up, but value has gone down – If you’re getting the pressure to upgrade or add on services to meet your needs or stay in compliance, but you are struggling with poor customer service and a system that doesn’t really work for you, it could be time to consider a change. When your pricing goes up, or before you take that upgrade, consider the value of not only the program, but also the service you are receiving from your provider. If your needs aren’t being met, it may be time to consider someone new. Check out what to consider before upgrading your system.

4. Lack of consulting – Are you struggling with a burning payroll or HR issue and not getting any help from your HCM provider? Or, does your package not build in enough time to ask the questions you need to efficiently run your system? If your HCM package has not built in enough, or any, consulting hours, you could be left to your own devices to deal with a system that doesn’t work for you. When you’re looking at payroll providers, make sure consulting and customer service time is built into your package. Don’t make a huge investment without any assurances or follow up.

5. Not growing with you – At some point, some businesses get too big for their current HCM system. Whether you’re running it out of Quickbooks or an antiquated non-cloud system, your business is growing and facing new compliance laws, it could be time to consider a more robust system. Once you get over a certain threshold of employees, you have ACA and FLSA compliance regulations to manage. Full-service HCM systems can manage that data for you and help you keep track of your requirements as you grow.

6. Customer service – If you’re calling your provider for help and are constantly on hold, maybe for hours, or you’re dealing with a new rep every time you call, it can get frustrating fast. Sometimes it may feel like the provider doesn’t even know your company at all. Your time is valuable, and your questions are important. Poor customer service can make this large investment feel useless or overwhelming when you can’t get the answers you seek. Look for a provider who can give you the dedicated attention you deserve.

7. HR/benefits/payroll/ time all-in-one – Tracking multiple sets of data in multiple systems can be a nightmare. It is inefficient and takes hours of additional training to bring your staff up to speed anytime there is a change or upgrade in any of the systems. A truly single-sign on portal and confidence in your database is possible with HCM systems today. You can save valuable staff time and improve your workflow with a system that allows you one point of entry. Then, you can get back to working on more mission-driven projects and innovative ideas.

While switching payroll providers can be overwhelming, it can also payoff dividends in the long run to get a system that meets your needs and can grow with you over time.

For more information or assistance on human capital management and payroll solutions, call 888-556-0123, email info@hkpayroll.com or submit our online form.

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