Minimize Risks in a Payroll Implementation

Once your new payroll system is implemented (*breathes sigh of relief*), it’s important to understand that, despite these new efficiencies, you will undoubtedly be met with challenges should the implemented tool not receive careful monitoring and continuous improvements. There are steps you can, and should, take to minimize risk of challenges, though. Below, we explore our best practices:

What do you want from this payroll system implementation?

The first step to avoiding challenges with your payroll implementation is to gain a clear understanding of how your current processes compare to your desired future processes. Not understanding this can lead to a lack of configuration for the necessary requirements.

When manual processes remain, it often prevents efficiencies in the automation or scalability of the new system. As a result, the full benefits of the integration and upload templates remain unactualized. Compliance issues in the Fair Labor Standards Act (FLSA) and tax still exist, as well. Lastly, many organizations find that both upstream and downstream departments object due to a break in process.

Have you established implementation partners?

The next step is to establish good representation/project management work on behalf of your organization. Implementation partners are necessary to driving an efficient system; but note that the business should always dictate project requirements, not the partner implementation team. Implementation consultants excel in configurability; however, they often lack real-world experience. Ensure an experienced project lead represents your interests and provides guidance along the way.

How can you optimize performance? Test the system

Then, test and test again! Be sure to include negative test scenarios, as many problems can be identified and solved in testing. Evaluate all earnings/time codes in every location through to a payroll preview. Test every combination you can think of – rescinds, change of hire date, termination, change of termination date, retirement, every leave, and every time-off type. Do not rely on automated testing alone; perform actual transactions. Sometimes, these will have very different results.

What steps can you take to prevent team member concerns?

Subsequently, once the final data is populated, audit, re-audit and audit again. Roll out a task to revalidate personal information, such as banking (both account numbers in addition to allocation) and addresses, to all employees. Simultaneously, work with HR and managers to ensure the ‘worked in’ and ‘lived in’ locations are correct. Confirm who the actual manager is – this will help to avoid having the wrong managers listed on approvals, slowing down workflows and approvals. These tasks will prevent a multitude of incoming tickets, complaints, and subsequent tax amendments or GL corrections.

Do you have a plan that can test the system for the long-term?

The last step is to create a proactive change management plan. Generate a detailed training plan for partners, managers and employees. Produce user guides and training videos (screen-recording for how-tos are lifesavers!). Form a team of change champions, who can assist by being a test population of the new processes as well as urging their fellow employees to adapt to the new processes.

Taking these steps to prevent or minimize project disruption may seem daunting, but with the right payroll partner, implementation can set your organization up for long-term success. At Sikich, we have experienced consultants that bring experience, order and planning to your project. Please get in touch with us to learn more about how we can support your organization.