Payroll is essential to running a functional business, therefore it’s important to have the best providers who are adequate to your needs. Every payroll company differs from the other but, finding the wrong one can be damaging your business in many aspects.
This blog will help you understand some of the reasons why businesses change their payroll provider, and if you should too.
Cost Savings
Many companies are not aware of the money they could potentially be saving by switching providers. This is because a lot of business’ are in a rush to find payroll providers that they then fail to do extensive research between companies and don’t compare prices. Additionally, some payroll companies have extra fees and hidden charges that are usually not mentioned in the set-up process. Some businesses do not initially realise how much extra fees they are paying because fees are usually charged the same time you pay your employees, which can make it harder to keep track of payroll costs or payroll processing fees.
Service Quality
The quality of the service provided is extremely important. It’s very important that employee payment and reports are finalised and submitted on time, some businesses have had problems with their payroll provider sending payments or HMRC reports late. This has led to late payment fees and frustrated employees. Some companies have also switched providers due to other providers having more expertise and more detailed and accurate databases, creating less room for errors and tailoring to their specific needs.
Benefits Administration
Some companies are usually put off switching providers due to new payroll providers needing an extensive amount of information and documents which can be a tedious process. However, higher quality payroll providers have systems which can make the transfer and signing up process swift and easy. This creates less administration after the signing up process, allowing more time to focus on other aspects of the business.
Customer Service
It is important payroll providers have an appropriate system for how they handle their customer service. Be wary of payroll providers that have call centres for their customer service, it can take a while to be connected to a representative which can be a downfall when dealing with urgent payroll issues. Many companies have had to switch providers due to misunderstandings and lack of communication due to their call centres being located overseas, making it very difficult to communicate due to time zones. It is also important to notice when you are connected to customer service, whether you are speaking to an expert or a trainee employee because this could lead to misunderstandings if the employee is not knowledgeable about all aspects of payroll.
It is important to make a checklist when switching providers to see whether your new provider can meet your needs. For example;
- Checking whether there is a clear point of contact between you and your provider.
- Are they HMRC recognised?
- Is there a clear payment schedule?
- The Terms & conditions of your existing contract
Before you make the switch, be sure to conduct research into different companies. However, it is important you understand payroll services and know exactly what you are looking for / the services you are requiring so you are not twangled into a contract you don’t like.
For more information on this blog or to speak to an expert, contact us below!