The research process
Once you’ve overcome the perceived challenges of switching to a new payroll provider, it’s time to find a new one. But where do you start?
First, you’ll need to review of your current provider if you haven't already done so. The pain points you will have highlighted as part of your review will inform your wish list when selecting a new provider.
Next, follow these important steps:
Get Googling. And be sure to ask your connections for recommendations. You need to figure out what is out there, what are they offering, and how does this stack up against your wish list?
Contact three providers that appear to fit your criteria best. Arrange meetings - face to face, if possible.
You’ll want a detailed chat about what they offer and a demonstration of their software.
If your procurement process requires a Request For Proposal (RFP), make sure it isn’t too long-winded and complex.
A sign of a good provider is if they undertake a detailed fact find of your business, uncovering new areas to make further improvements to your payroll and HR processes.
If you’re looking to outsource your payroll, you’ll also want a thorough understanding of their service.
Given your potential concerns about the ‘hassle’ of switching, you need to understand how each provider will ensure a smooth implementation. You can use our questions (coming up next) to help with this.
Ask if you can speak to any of their current customers for a reference. And check out online review platforms like Trustpilot. What are current customers saying about their software and service?
Another indication of a good reputation is the CIPP’s Payroll Assurance Scheme accreditation (PAS) - is this something they have? How long have they held it for?
This will likely be a top concern for your stakeholders - as it presents a risk to your business. Trustworthy providers will talk about best practice and refer to relevant accreditations and certifications. Examples include the ISO accreditation and Cyber Essentials certified certification.
Think about all the system users, as well as the key decision-makers. From an employee to the Financial Director - would it be beneficial for them to see a software demo as well?
Gaining feedback from your key stakeholders will help inform your decision.
When you’re obtaining the above information, you’ll want to make side-by-side comparisons of your shortlist. This will help you compare the providers against your wish list, and against each other.
To help you with this, we’ve included a handy scorecard example later in this guide.
There are example questions in the next chapter.
