The decision to change payroll software isn't an easy one. Payroll is an essential function in your business as it impacts your employees, pay slips, tax, and compliance. It is so entrenched in your core operations, that the thought of switching platforms can put you off making a change – no matter how tired of your existing software you may be. What if you lose some data? What if you get locked into a new contract and the new platform isn’t all that you dreamt it would be?
However, if your business is growing, regulations are changing, and your payroll software is holding you back, the cost of doing nothing could be far greater than any of your concerns about changing.
Payroll compliance is becoming more important in Australia and working with a system that’s stuck in the past is risky. Plus, imagine the upside of switching to a better system which is intertwined with your business operations. Updating your payroll technology is a great way to streamline your ways of working, derisk your growth journey, and scale up your workforce. So, let’s explore how you can make the most of this transition.
There are plenty of reasons to change platforms and it’s important that you can champion the ‘why’ behind the move to your team.
Your current payroll software can’t handle a growing workforce
The payroll platform you use shouldn’t hold back your business growth. It should be scalable and flexible. If your team is expanding, you should have a platform that can handle different types of agreements, awards, pay structures, and reporting requirements. You should also be able to add new sites, locations, and operations and establish a centralised or decentralised set up based on your business’s needs.
It doesn't integrate with other systems
Payroll is intertwined with HR and accounting, so you should be able to integrate with a variety of HR tools. foundU's payroll software is built into an all in one workforce management system, which enables a seamless flow of data between our employee onboarding, rostering, time and attendance, leave management, and employee data management tools. Rather than relying on a stack of third-party integrations to get pay right, foundU owns and supports all of its core features, which means that we can adapt to new legislation and changing business requirements.
You can’t keep up with your compliance requirements
Australia has some of the most complex workplace laws in the world and the compliance breaches can come with serious consequences. If your payroll software provider can’t adapt to important changes of legislation, then your business might risk becoming non-compliant.
You can’t get any help from your customer support team
If you’re constantly getting blocked by technical issues, facing system downtime, or can’t get a helpful response to your questions, it might be time to look for a solution that’s more reliable. foundU has an Australian-based customer support team with phone, email, and in-person support options. You can also get in touch with them seven days a week, because we understand how important it is that your team is paid on time.
The process won’t happen overnight, it can take weeks to months depending on the complexity of your business. However, by taking a structured and proactive approach, you can make the switch much smoother. Set realistic expectations with key stakeholders and make sure you allocate enough time for the transition. You are also going to need to collaborate with different departments, including HR, finance, and IT – so make sure everyone is aware of their responsibilities, as well as the upsides and risks involved in the change.
You’ll need to make sure that someone is overseeing the process and in charge of project management. In addition, data migration and compliance requirements also need a lot of care and attention. Other important tasks like setting up the system, training employees, and testing the set up can also be delegated.
Before jumping into a new payroll system, you need to assess your business and workforce requirements. Some considerations you could make include:
By building a list of requirements in collaboration with your team, you can narrow down your options and select the payroll system that’s the best fit for your needs.
Choose the right moment to make the switch based on your operations and payroll cycles. Ideally, you should cut over between pay cycles to reduce the risk of error. You should also allow enough time for training and testing before you go live. If you're swapping to foundU, you can make the change at any point in the financial year. You will just need to use both systems to complete your reporting.
Some businesses choose to make the change when their business is quiet. Others start setting up their system early and prepare for it to be live in the new financial year when new tax rates, minimum wages, and superannuation thresholds kick in. Choose the timing that works for your business.
People can resist change and your team might feel apprehensive about learning to use a new system. That’s why it’s important to communicate early and openly with your team about the switch, its purpose, and how it will affect their day to day role. Be transparent about the changes they can expect and keep them informed throughout the process. Most importantly, keep reiterating why you are making the change so that you can keep spirits high.
Find out what training is available for your payroll team and managers so they can familiarise themselves with the new system. If your employees need to update any of their personal information, make sure you make it easy for them to provide their data and complete onboarding.
At foundU, we take the time to get an in-depth understanding of your business and what you’re trying to achieve, so that we can help you gain buy-in from your stakeholders from the start.
No matter how powerful your payroll platform is, it needs your data to perform. You’ll need to prepare everything from banking details, to awards, pay rules, and existing employee information – and foundU can help you maintain data integrity when you move it. You should also consider how you will save or transfer the historical payroll data from your previous system. At foundU, we provide data migration support throughout the implementation process. We can help you check that your data is accurate and up to date before you complete the migration.
After taking the time to understand your requirements, your payroll implementation team should support you to configure the new system. This can include setting up pay periods, defining employee classifications, and establishing pay rules. You’ll also need to establish the settings for superannuation, leave, and any other employee benefits. This stage can help you avoid incorrect pay or compliance issues down the line, so it’s important to involve your key stakeholders and lean on your customer support team.
At foundU, we clarify and consult as you go, helping you to set up your payroll system according to your requirements. During configuration, we’ll also get your team started on some training modules so they’re ready to start using the system.
Testing helps you weed out any errors. When you gain access to your platform, you can start checking your own data and workflows, learning how to use the system at the same time. You should be shown how to validate your data, test processes, and perform parallel pay runs on both systems and compare results to ensure that everything is running correctly.
Continue to involve your team in this phase to catch issues early and test different scenarios that occur in your business. For example, using foundU’s powerful award test tools and payroll variance reports, you can see how pay rules are being referenced and applied.
This is one of our favourite parts of the implementation journey, because our customers start seeing how much smoother their payroll processes are about to be.
Once you’re confident that the system is set up correctly and fully tested, it’s time to go live. Ensure that all payroll staff and relevant personnel are available to oversee the transition. Keep your employees informed of the switch and provide them with clear instructions on how to access their pay details or update personal information if required.
Your team will keep learning about your platform after you go live. Make sure that your payroll software provider has an active customer support team that you can keep reaching out to for assistance. They should also have an up to date help centre so that you can get answers to your questions on demand. foundU has all of these options included in its monthly active user pricing model. You can also choose to invest in custom training for your team if they need it.
Changing payroll software can be daunting, but there is a lot you can do to select the right platform and speed up the process. By carefully planning the transition, testing thoroughly, and tapping into your provider's support resources, you can streamline the switch. Be proactive in training your team, prepare your data, and set realistic timelines. With a thoughtful approach, you can improve your payroll system and focus on growing your business.
Thinking about changing your payroll software? Then book a demo so you can learn more about our adaptable payroll platform’s capabilities and the support we can provide throughout your transition.