“This is the start of something wonderful,” is what your payroll provider will likely tell you right after you’ve dotted all the I’s, crossed all the T’s, and shaken hands over a fresh contract. But the question remains: is it? If you’ve never outsourced your payroll before or even if you have in the past, the implementation process likely remains a mystery. That being said, it’s not too hard to imagine this mysterious process also taking a mysterious amount of time with a mysteriously low amount of communication from your provider. What do you do in this situation? A slow implementation process can bog down your business for weeks, creating unnecessary administrative backlog and undue stress.
At Payday HCM, we’re very familiar with the effects of a “Wizard of Oz”-style, keep all the magic behind the curtain-type of implementation. We receive plenty of questions from our clients, both those who have outsourced payroll before and those who have never outsourced, about the implementation process: what it involves, how long it takes, and what kinds of things they should be prepared to do. While, for some providers, they may opt to keep this a trade secret, we want to ensure each and every business knows what they’re getting into before signing with a payroll provider—whether that’s us or someone else.
That’s why, in this article, we’ll be going over how the implementation of outsourced payroll services actually works. We sat down with Payday’s Senior Client Service Coordinator, Esther Vialpando, to talk about how the implementation process begins, what information is needed to start the process, what actually occurs during implementation, and, generally, how long it takes.
In this article, you will learn:
- How Does the Implementation Process Begin?
- How Implementing Payroll Services Works
- Completing the Implementation Process
How Does the Implementation Process Begin?
First up is the first step in the implementation process—we’ll start by covering what you can expect at the start of the process, transitioning from sales to implementation.
How Does the Implementation Process Start?
Before the actual technical side of implementation can begin, Vialpando first needs to understand who the client is and what their goals with outsourcing their payroll are. This first one-on-one meeting is vital for establishing that connection, building trust and confidence between the implementation team and the client.
“My role is to connect with new clients, and I learn, ‘What are their current issues, either internally or with their current provider?’ What I do is I surround my thoughts around that process. That is my guiding force,” Vialpando said. “And what I do is then talk to them about what they want to achieve as far as being more efficient, being able to have more time to not do payroll [and giving] that responsibility to us.”
Transitioning From Sales to Implementation
We’re all familiar with the phrase “first impressions are everything.” Well, the same logic applies to implementation. The implementation process begins just as the sales process is ending, with Vialpando collaborating with various departments and team members to ensure all of the necessary information and data are accounted for and collected.
“When I look at the demographics or the data, our [Implementation Manager, Janet Tedesco,] oversees and reviews the data that we're given first, which really is helpful because if anything is missing, it doesn't even come to me… That in itself really cuts off a lot of delay,” Vialpando said.
How Implementing Payroll Services Works
Now that we understand how the implementation process begins, we can look closer at the process itself and the kind of information that’s necessary to implement payroll services.
What Data Is Needed For the Implementation Process?
As mentioned above, the implementation process can’t begin until all the proverbial ducks are in a row—that is, until all of the necessary data is collected. This data ranges from things like the kinds of services requested to information about the business, including business name, tax ID numbers, employee information, and returns.
“The information that I need is all listed in our contract. The most key information that I need is the most recent tax returns. It could even be last year's tax returns, but the most recent ones are really helpful because that gives me all the legal IDs and the legal name, right… But what's really important is what is the client's expectation? That is really important. And that's where I would receive that information, when I have a one-on-one,” Vialpando said.
How Long Does the Implementation Process Take?
The actual length of the implementation process depends on several factors, including the services being provided, the amount of time it takes to accumulate all the necessary data and information, employee demographics, pay history, and the provider implementing the client. Overall, the length of the process will depend on the communication between the provider and the client being implemented.
“The urgency state is to implement as quickly as possible, gather the information as quickly as possible… [Maybe] they have their current provider, but they want to move away from that to get to something better. We're that something better. That's where we come up with a timeline that is suitable for them and suitable for us,” Vialpando said.
Completing the Implementation Process
Once all of the necessary information and data are collected and input into the appropriate places, it’s time to look at transitioning from implementation to operations.
How Do You Know When the Implementation Process Is Over?
The timeline for the implementation of a new process or system, whether that’s the introduction of a third-party payroll provider or a new HRIS solution, will vary on a case-by-case basis. And, while the successful first payroll run and handoff to the operations team are all indications of a successful implementation, Vialpando relies on her clients to know when her job is complete.
“When I am in the process of running their first payroll, I invite them to be part of my team to process that first payroll so that they can see the processes… But I would say [when I hear] everything has gone really well—that is the key thing. When I see that in an email or hear that in a voice—‘everything has gone really well, Esther, thank you very much’—that is a green light for me,” Vialpando said.
How Does the Implementation Process Vary Between Providers?
One of the more important things that will affect what the implementation process looks like and how long it will take is the payroll provider that you are working with. While we’ve utilized our own implementation process to provide insight into how implementation works in a general sense, it’s still important to consider the role the provider plays in the process.
“When it comes to the implementation, my understanding is they're given a list of items. They have to complete that list before the implementation starts. So, if the client delays giving them that information, 2 weeks, 3 weeks, the implementation doesn't begin until then, and then they're going out another 2 or 3 weeks. So in essence, their implementation could take up to 6 weeks from another service bureau because they need the whole completed list,” Vialpando said.
Instilling Confidence Through A Strong Implementation Process
If we haven’t said it enough throughout this article, we’ll say it one more time, just for extra emphasis: a smooth implementation process is crucial to ensuring a successful working relationship between you and your payroll provider. Without the collection of the necessary data, personal communication between you and the person performing your implementation, and a smooth transition from implementation to operations, you risk potential delays in payroll processing as well as future compliance issues and errors that could prove costly. With the information provided in this article, you’ll have the knowledge to approach your implementation process with confidence—whether that’s with us or another provider.
Outsourcing your payroll can be one of the most important decisions a business owner can make. Successfully implementing a payroll solution can feel like the removal of a large weight off your shoulders, but what happens after that? What kinds of things can you expect after the implementation process, especially regarding cost? These are all important questions, and they’re ones that business owners often ask themselves once they’ve transitioned from implementation to operations. Check out our article on the various costs of outsourcing your payroll to get a full understanding of all the costs that come with payroll outsourcing—from the first discovery call to the first payroll run.
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