Are you thinking of switching your payroll provider this year? Perhaps, you are frustrated with the service being provided by your payroll company? Or else, the company’s negligence has resulted in errors leading to heavy fines and penalties. Maybe, you are too tired of handling the payroll function along with other functions of your company. Whatever, the reason may be; the question arises as to what is the right time to change your payroll provider?
What is the ideal time to switch your payroll provider?
The ideal time to switch your payroll provider is the beginning of the new financial year. In India, the new financial year begins from 1st April when the old contracts end by 31st March. Changing providers at the beginning of the year allows your new payroll company to run smoothly throughout the year. However, before making the change the following vital aspects should be considered:
Let us briefly understand the vital factors which should be considered while changing your payroll service provider.
1. Service Issue: Payroll is indeed a vital function of your company. So, if your employees are facing service issues with your present payroll provider, it is time for a change. There could be instances where your employees are unable to extract the data required, then this can leave a negative impact on your employees. Moreover, your present payroll service provider should be able to use technological advancements in resolving issues at a faster pace.
In other words, any kind of service issues which hamper the overall productivity of the employees and payroll errors –all are indicators of changing your payroll service provider in the new financial year.
2. Automation: The automation feature in payroll is certainly the most strong point in favour of hiring a payroll service provider. And, if your present payroll company fails to provide it, then it is time for a change. Let me tell you that automation in payroll facilitates data collection, validation, doing calculations at the click of a mouse. This in turn increases the efficiency of your company and that of the payroll service provider. After all, efficiency of your company will give a boost to your customers as well.
3. Flexibility: In the present fast paced working scenario, it is essential that your present payroll company provides the flexibility of mobile application to the employees of your company. Perhaps, your payroll software is easy to use on your desktop or labtop but not so efficient to use on your mobile. The inability to access, update or collect payroll data while travelling can easily affect employee productivity and employee morale leading to reduction in the functioning of the company. So, when you get these indicators, it is time for you to think of a switch over to a new payroll company.
4. Competitive Pricing: Another significant area of concern is the price being paid to your present payroll service provider. If you get this feeling that you are paying too much or perhaps some of its facilities are overpriced, you should certainly look for other options. After all, there are numerous payroll service providers in the market and you can select the one which suits your budget and adds value to your company as well.
Some of the payroll pricing issues which you may come across are the following:
Ideally, the charges being paid to the payroll service provider should be clear and transparent for you to analyse whether you are being overcharged or not. In case, you feel there is overpricing, you should look for other options in the market based on competitive pricing and then select the appropriate payroll service provider.
Therefore, to conclude, do not undermine the importance of the payroll function in your company. If, by any chance, the present payroll service provider is unable to meet your expectations then do switch over to a new one at the beginning of the new financial year.