Traditionally, organizations managed payroll in-house using manual processes. As time went by, handling payroll became daunting and strenuous for HR departments and companies began to outsource payroll management services. They started switching to more advanced technologies and online payroll software for effective and smooth processing. This shift from one payroll system to another platform is called payroll migration. The reason can be anything from the inefficient system and delayed payroll processing to lowered productivity and rising overheads.
No matter what the reason for payroll migration is, it can be an overwhelming and lengthy process for HR and business leaders. This monumental task is not only time-consuming but can soon become complicated if done on a global scale. You have to coordinate with multiple teams and face various stumbling blocks throughout the journey. Therefore. Payroll migration services are used to let professionals deal with the migration process. They make it hassle-free, quick, efficient while allowing you to focus on other core business functions. They support business owners at every step of the migration and take their stress away. However, you still need to understand the process and key factors for successful implementation.
If you are planning to migrate to an advanced and updated platform to drive payroll processing efficiency, then there are a few tips that you must take care of. These common steps are essential for a strategic and successful system upgrade.
This step-by-step guide to payroll migration will provide you with insight and knowledge to ensure informed decisions and effective deployment. Take a look:
Step 1- Plan the Process Diligently
Before you kick start the migration process, it is important to complete due diligence overview of the plan and environment. Start planning early to get an end-to-end view of your current payroll infrastructure, identify the resources required for a successful migration to cloud-based HR software solutions, create a roadmap for the best approach, and reach your target on time. Also, consider the best time to make the transition and set the deadline. You must have a clear aim for three crucial steps for payroll implementation- testing, parallel run, and launch.
The size of the team you will require will depend on each stage so you must plan accordingly. Communicate the plan and their roles to each involved employee and help them understand the key factors, schedule, and milestones. Remember that what worked for other businesses might not work for you. So, create a detailed strategy from scratch for a successful payroll transition.
Step 2- Verify Employee Data
The next step is to ensure that your employee payroll data is accounted for and up to date. As you will be moving to another system, it is essential to manage data and review it at the early stage. This stage includes verifying all the details and information regarding employee payroll, checking that the data is comprehensive and consistent. Trust us, the last thing you want during the migration is incorrect and inaccurate data that results in inefficiencies in payroll calculations on the new platform.
We understand that verifying and updating data is not a straightforward process for HR and business owners. Hence, you can seek IT consultation services to assist you throughout. They will help you update bulk data prior to the extraction and will export entire payroll data into the advanced system. Stay away from manual updates or verification as it has higher chances of errors and omissions.
Step 3- Clean the Outdated Data
Changing the system and cleansing the data are the perfect time to review current information. If your company has been using the same payroll system for more than a decade now, then it means you will have 10 years’ worth of data. Do you think all that information is useful to you? Would you need them in the future? Therefore, it is necessary to decide the information that must be moved forward to the new software. For a stand-alone payroll system, data cleansing must be done thoroughly to keep them in sync.
After you decide which piece of information is vital, take data backup before going for cleansing. You can take help from professional consultants who will work closely with you to obtain data and process it accurately.
Step 4- Lift & Shift
“Lift & shift” is the most critical and biggest part of payroll migration where you move data from the legacy platform to a new and updated software. Needless to say that it is a complicated and lengthy process so you must be patient and take sufficient time to complete the transition. It needs considerably more expertise so the existing deployment is moved without building or changing configuration and customization, creating the same environment. The interfaces are rerouted and every task is performed at the infrastructure level.
Your employees expect you to be careful and responsible with their personal data and the law demands this as well. Any failure to meet compliance or legal requirements can lead to serious consequences and financial implications for your company. Hence, you can take help from an expert payroll software vendor to stay compliant. Make sure that the data is stored in a cloud-based platform to minimize server storage space, facilitate easy retrieval, and ensure data security.
Step 5- Test the New System
Before you roll out your new payroll software, it is essential to run a series of tests to verify the accuracy of payroll calculations and revalidate the data. The aim of quality assurance and testing is to compare the data within the new system against legacy software, such as timesheet checking, payroll history, and employee data. Meticulous review and analysis will uncover potential errors and bugs before the final launch. Also, it will check that the data is clean and accurate.
The payroll team will be responsible to validate the data accuracy while your payroll software service provider will take care of beta-testing the new system. As part of this process, identify a few employees to participate in the testing exercise and provide their genuine feedback about potential improvements. Only after careful testing and approval by key stakeholders, go live with your new payroll software.
Step 6- Train Your Team
As you deploy your new payroll system and open it for employees to use, tightly align a project team by holding training sessions. This will help the workforce to understand the new system and work on it conveniently. Your training program must include re-training the staff on how to navigate through the new platform more efficiently and calculate accurate payroll while moving forward. The size of the payroll team and roles will depend on your due diligence and outline of the migration process that was discussed earlier. However, the majority of team members will focus on infrastructure operations with functional people involved in regression testing.
If you are integrating the payroll software will other HR platforms and functions, such as employee self-service portal, benefits administration, etc., then train employees on how to access the platform and retrieve key information, including their tax forms and online payslips.
Step 7- Roll Out the System
Now that you are done with data migration, testing, and fixing errors, it’s time to go live with your latest payroll software. Yes, the process will be lengthy and might extend to a few weeks or months but with well-defined planning and strategic preparation, you can meet the deadline effectively.
The transition to an advanced system will provide end-to-end visibility and confidence that every aspect is completed while maintaining the highest standards.
Wrapping Up
Payroll migration offers several benefits to organizations, HR professionals, and business leaders. However, you must be thorough and must stick to the above-mentioned steps for a successful transition. Also, aim for your payroll to be reconciled on the new software and eliminate outdated data for improved efficiency. With pre-live testing, strategic planning, and proper communication, you will surely achieve smooth payroll migration.
Author’s Bio: Alicia works with the editorial team of Accomplish EP, a leading company offering talent management software. Exploring the latest technologies, reading about them, and writing her views have always been her passion. She seeks new opportunities to express her opinions, explore technological advancements, and document the details. You can always find her enjoying books or articles about varied topics or jotting down her ideas in a notebook.