If payroll errors, delayed pay runs and expensive compliance fines are causing you headaches, it might be time to upgrade to a new payroll and HR system. While this is a significant decision, it’s one that demands careful financial planning, says Ian McAlister, General Manager at CRS Technologies.
“It’s important to break down the key costs to ensure you’re fully prepared and don’t encounter any unpleasant surprises along the way. Proper planning also ensures your team is equipped to leverage the system’s full capabilities, helping your organisation get the best return on investment.”
When doing your planning, McAlister advises starting with the software itself. “Take a close look at the pricing model to ensure it suits your organisation’s budget and operational needs. Some systems require a one-time investment upfront, while others follow a subscription-based model, billed monthly or annually. Another option is usage-based pricing, where costs scale with factors like the number of users or transactions.”
Don’t forget to consider optional features that could enhance your operations, such as advanced analytics, performance management or employee wellness modules, he adds. “Make sure to review what’s included in the base package versus what’s considered an add-on, so you’re not caught off-guard later.”
Next, factor in setup and implementation fees. Data migration and system configuration are critical components of the setup process, McAlister notes. “You’ll need to allocate resources to transfer historical data securely and ensure the new system is configured correctly to align with your payroll cycles, tax settings and organisational policies.”
Equally crucial is ensuring your payroll and HR teams receive the necessary training. “A well-trained team is essential for using the system effectively, so it’s worth investing in comprehensive in-person or online training sessions to get everyone up to speed.”
Good timing is key
Timing is everything when implementing a new system. A well-planned transition can mean the difference between a smooth integration and a disruptive, error-filled process.
McAlister highlights several factors to consider before starting the migration. These include your organisation’s payroll schedule, looming regulatory deadlines and any other major projects currently underway.
“With this in mind, switching to a new payroll and HR system at the end of a financial year is often considered the best choice, primarily because it offers the opportunity to start with a clean slate. Beginning a new financial year with a fresh system minimises the need to transfer large amounts of year-to-date data. This reduces the risk of errors and allows you to set up processes more effectively from the outset.”
Aligning the transition with tax reporting deadlines also keeps everything compliant. “Your current system can finalise the current year’s tax obligations, while the new system kicks off cleanly with the new financial year. This approach keeps things simple and stress-free, making the whole process much smoother.”
Switching systems at the end of the financial year also minimises disruption. “For many businesses, year-end tends to be a quieter time, giving payroll and HR teams the breathing room to focus on the transition without having to juggle multiple deadlines or projects.”
Starting off the new year with a fully implemented payroll and HR system puts you in a strong position to hit the ground running, McAlister concludes. “It’s a forward-thinking approach that not only supports your organisation’s growth but also boosts employee satisfaction by delivering accurate, on-time payroll and improved HR management. By laying this solid foundation, you’re creating a positive experience for your team and setting your business up for long-term success.”
