There might not be anything more annoying than thinking you’ve solved a problem only for the same issue to return some time later. If you’ve ever experienced any issues with a computer or smartphone, you’ve likely run into this. You’ve turned it on and off, you’ve changed any number of settings, and maybe you’ve even completely reset the device, only for the same problem to keep happening. When it comes to switching payroll providers, this isn’t a situation you want to find yourself in. Switching providers isn’t easy, and you wouldn’t want to go through the process of bringing on a new provider and migrating all your previous data just to be stuck with the same issues your business was facing that led you to switch in the first place.
At Payday HCM, we understand the importance of making the right decision when it comes to switching payroll providers. While our goal is to ensure each and every one of our clients’ needs is met, there are times when switching providers is what’s in a client’s best interest. As such, we want to help ensure that the transition process goes as smoothly as possible and that their new provider is a perfect fit for their business. Part of finding this fit involves the software that the payroll provider offers. In some cases, businesses may find themselves in a situation where their new potential provider offers the same payroll and HR software as their previous provider. Does this mean the same issues they are experiencing will just follow them over to their new provider?
Well, in this article, we’ll be going over what to do when switching providers when both providers offer the same payroll and HR software. We’ll first cover how you might run into two payroll providers that offer the same software. From there, we’ll cover the kinds of things your business should look out for when it comes to considering a new payroll provider who offers the same software as your current provider. Finally, we’ll go over questions you can ask both your current and potential providers to ensure that you’re making the best decision for your business.
In this article, you will learn:
- Payroll & HR Software Providers: Partner vs. Proprietary
- What If My New Payroll Provider Uses the Same Software As My Previous Provider?
- Questions for Your Current and New Provider
Payroll & HR Software Providers: Partner vs. Proprietary
Before we get into the details on whether you should switch between providers who offer the same HCM software, we’ll first go over how you might find yourself in this scenario to begin with.
Proprietary Payroll & HR Software Providers
When we talk about payroll & HR software, we’re mainly referring to what is called a Human Resource Information System (HRIS). Essentially, an HRIS handles most things payroll and HR-related, including:
- Running payroll
- Benefits administration
- Applicant tracking and onboarding
- PTO and time-off management
- Employee information database
When exploring options for payroll and HR providers, they’ll typically offer an HRIS in one or two forms: as a proprietary, in-house developed software, or as an outsourced, partnered software. Proprietary software providers have developed their own HRIS in-house, offering it to their clients as well as potentially licensing it to other partner providers.
Payroll & HR Software Partner Providers
Not every payroll & HR service provider has the means to develop their own HRIS. Simultaneously, providers who have developed their own HRIS likely need to account for the cost and resources necessary to develop their software. Therefore, companies in need of an HRIS to offer to clients will partner with other providers who have developed an HRIS.
Partnering with a payroll and HR software provider is a very typical practice in the world of payroll and HR outsourcing. The process serves to benefit both parties: payroll and HR service providers without the means of developing an HRIS can still offer one to their clients, while service providers who have developed an HRIS can continue to put resources into improving their HRIS by outsourcing their software to other companies.
What If My New Payroll Provider Uses the Same Software As My Previous Provider?
Next, we’ll look at what to do if you’re considering switching payroll providers and they both utilize the same HRIS.
Service vs. Software
With the HRIS partner provider model, there can arise a situation where you may be looking to switch from one payroll provider to another, but both providers offer the same payroll & HR software. If you find yourself in this situation, it’s crucial that you take a moment to assess what it is you’re looking for in a payroll provider and the reasons why you’re switching.
As we’ve mentioned, an HRIS, and technology as a whole, can help to streamline your business’s payroll & HR processes. However, the software does (for now) require people to use it and to service it. You’ve also probably found yourself in many scenarios working with customer service representatives at your current provider, whether that be troubleshooting software or another issue.
In a situation like this, you’ll want to ask yourself: Is it the software? Sometimes, the answer is yes. There are moments where you may have simply outgrown the HRIS that your company is currently using through your current provider, whether that be due to an inability to scale or a missing feature.
The Benefits Of Keeping the Same Software
However, it is possible that the reasons why you’re switching providers aren’t strictly software-related. While a majority of processes occur within an HRIS, the HRIS may not be the root cause of the issues you may be experiencing. In fact, it could be potentially beneficial to switch providers while keeping the same software.
Oftentimes, introducing a new HRIS, or really just any new software, can create unique problems. On top of this, especially with an HRIS, there’s the question of data migration. Staying within the same software ecosystem can keep a sense of familiarity amid other changes when switching providers, while also helping to ease the transition, as, although you’ll still need to provide information to your new provider, there won’t be as much work to completely transition data between different software.
Questions for Your Current and New Provider
If you find yourself in a situation where you’re considering a new payroll and HR provider but they offer the same software, there are some questions you can ask both providers to help your business make the right decision.
Questions For Your Current Provider Regarding Your Payroll Software
As we mentioned above, if you’re considering switching payroll providers, but the new provider you’re looking at utilizes the same payroll and HR software as your current provider, you may want to consider more deeply the reasons why you’re switching providers. This includes asking your current provider questions and seeing if there’s any way to remedy the current situation.
Some questions that you can ask your current provider in regards to switching providers include:
- We’re currently having this issue with your software—are there any possible solutions or remedies?
- Are you considering switching HRIS platforms? If so, how soon?
- Are any other clients experiencing similar issues? If so, how did they go about solving them?
Before you switch providers, it’s good to ensure your current provider has provided you with every possible solution in order to help alleviate any stress points that may be leading you to switch providers.
Questions For Your New Provider Regarding Your Payroll Software
On the flipside, there are also questions that you can ask your potential new provider if they offer the same payroll and HR software as your previous provider. Ultimately, it’s key to remember that, software aside, these are still two different providers with two different knowledge bases and different customer service representatives who may have experience with issues that you’re facing.
Some good questions to ask a potential provider include:
- We currently utilize the same HRIS platform and are experiencing these shortcomings. Is there anything you can do to help combat these issues?
- Does your staff have any experience working with our industry or our business regarding your software?
- Do you have a dedicated IT desk or individuals designated to handle any software-related issues?
- Do you offer any extra services that complement your software offerings?
Certain providers may offer the same HRIS, but they may employ that HRIS somewhat differently. For example, Payday offers custom APIs and software integrations with isolved that aren’t necessarily offered directly through isolved.
Don’t Settle For More of the Same
Making the decision to outsource your payroll or HR functions is one of the most important decisions a business can make. By extension, deciding to switch payroll providers might be even more important. As such, selecting the right partner is crucial. If you’re moving from one provider to another, you likely have a good sense of what worked well and what didn’t, and you’ll be looking for a provider who can fulfill the shortcomings of your current payroll arrangement while still keeping what’s working. What you don’t want is to switch providers and find yourself facing the same issues you were facing with your previous provider, and making sure the software your new provider offers works with your business is one of the more important steps to ensuring this success.
In today’s business landscape, the way you use technology can make or break your business. This is no different when it comes to the partnership between your business and your payroll provider: if your provider isn’t making use of all the available tools at their disposal, and if they aren’t working with you to ensure any current tools you use will integrate seamlessly with theirs, then it’s possible that you may be falling behind other businesses in your industry. This isn’t a problem without a solution, though. Check out our article on how Payday utilizes APIs and software integrations to help streamline processes and ensure our clients are at the forefront of what’s possible within their industry.
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