Moving Your Payroll System In-House

Moving Your Payroll System In-House

10 July 2017

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In one of my previous blogs, I weighed up the pros and cons of having an in-house or outsourced payroll system. There are many attributes to having your payroll processed either way, and it can often depend entirely on the size of your business and your requirements. However, many of my clients are not familiar with the process of moving from an outsourced payroll system to an in-house one. It’s a process that can take a relatively long period of time, and brings with it both new challenges and benefits.

With so many changes to regulations and software, it perhaps seemed easier to have an outsourced company deal with any potential payroll headache. But, as more candidates get to grips with the new systems, it may be possible to return your payroll to an in-house function.

I have worked with a number of businesses during their decision to bring their payroll back inhouse and although this is an exciting time, it also brings a period of change that can unsettle staff members.

There will be a transitional period (it is hard to define exactly how long this would be) wherein the payroll duties are transferred back to your business. Therefore, the challenge is being able to find a member of staff who is willing to stick around whilst this process occurs. Whilst things are in limbo, they may well have little more than some admin work to do or be heavily involved in reporting as opposed to processing any payroll. It is important to reassure your employees that they will be in full control of the payroll system once the handover is complete and ensure that they are given deadlines and updates in relation to timescales so that they don’t get too frustrated.

One way to do this is perhaps to involve your payroll administrator in the selection of a new, in-house software system. Which one do they find most productive and user-friendly? They will have to feel confident using whichever system you choose, so it would be a sensible idea to have your employees involved in the selection process.

Furthermore, it is important that, once the transition is made, you have the right employee leading the charge. You will need to consider who of your existing staff is most comfortable managing a team, or even look to hire externally. Having a capable leader will be important, especially in the early stages.

You will also need to ensure your current staff members within other areas of the business fully understand and are ready to take on this challenge. If you commit to making the transition, it may require some extra work from your wider Finance and HR teams in the early stages. If you are tasking an employee with this project, they will likely have thoughts and ideas about how it is best to be carried out and it is important that you are actually ready to commit to these as a business and provide the necessary support for it to be a success.

Whilst bringing your payroll back in-house will, ultimately, be beneficial, businesses also have to be aware that there is the possibility that you may inherit some data issues in the initial stages. Since the information is coming from an external source, it is important that your payroll employees check everything thoroughly to avoid any complications or problems further down the line. The responsibility for ensuring data is correct and pulling through properly will now lie solely with your company. This is particularly crucial if your payroll contains a lot of complicated deductions or benefits.

If you would like to speak to me about hiring talented payroll candidates, I would be happy to help you source great talent to suit your business needs. Click here to see my details.




Written By Eilidh Black


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