Outsourcing payroll is a fact of life for millions of small and medium-sized organizations. Recently, peer software review platform G2 found that outsourced payroll demand is surging for the large swath of companies that don't require in-house payroll staff. The global payroll industry is projected to grow by 5.8% between 2022 and 2027, with outsourced payroll making up most of that increase.
However, outsourced payroll hasn't been without its thorns. Many companies are dissatisfied with their current payroll provider and are in the midst of a payroll service transition. With many notable online payroll providers and accounting services facing disruptions, data breaches, or even being knocked offline altogether, a transition from big-box payroll is taking hold across the business world.
Switching to a smaller, more personalized company will get you attentive and dedicated service, competitive pricing, and a strategic partner invested in seeing your organization succeed. Here's why companies are amid a payroll service transition revolution and why they are opting to switch to Workforce PayHub.
Why Companies Are Switching
Why are so many companies making a transition from big box payroll? The reasons are numerous, but here's a snapshot of why large payroll companies are seeing an exodus:
- Poor customer service. When you work with a big-box provider, getting in touch with customer service is often a futile task. Hold times can be several hours, or emails don't get a response for several days, if you get a response at all. If you pay for a higher tier of service, you may get assigned to an overworked account manager who has to manage several clients. Their priority is putting out the largest fires first and tending to the most lucrative clients, so even a dedicated account manager is no guarantee of better service with big box payroll. They simply have to serve so many clients that it makes it impossible to provide a personalized level of service.
- System outages that disrupt operations. While system outages and technical issues can plague payroll providers of any size, they happen more frequently to big-box providers. The system architecture is insufficient for continuously supporting the massive number of users, and their IT staff is usually stretched very thin to keep it functional. Sometimes, the entire company goes offline and even locks people out of their accounts. This can result in important deadlines being missed, like tax filings that can carry enormous penalties for being late or incorrect.
- They're targets for data breaches. Cybercriminals know that large payroll providers' customer records are treasure troves of sensitive information. If they breach just one account, they can walk away with thousands of bank details, employees' Social Security numbers, home addresses, phone numbers, and other data that bad actors salivate over. Smaller payroll providers must also mitigate cybersecurity risks, but they tend not to be targeted as often for breaches.
- Frequent processing errors. Big box providers are notorious for frequent processing errors. This is often due to the strain on employees managing very large amounts of accounts.
The Benefits of Switching to Workforce PayHub
- Personalized customer service. When you switch to Workforce PayHub, gone are the days of waiting on hold so long to talk to a real person, that you just changed fiscal quarters. You get highly personalized customer service to enhance your payroll services rather than an overworked customer service representative who has to handle thousands of different accounts daily.
- Tailored solutions that fit specific business needs. One of the drawbacks of big box payroll is that their solutions need to cater to a wide variety of customers. While this approach can work for very small companies that have simple recordkeeping needs, nothing is ever truly "one size fits all". Workforce PayHub offers tailored payroll solutions designed to fit business needs by industry, organization size, compliance requirements, and more.
- Quick and responsive support team. If you need support, Workforce PayHub's friendly and professional payroll experts are here to help you every step of the way. Your emails won't go ignored or unanswered for several days while you urgently need payroll documents filed.
- Advanced technology that integrates easily with existing systems. No matter what type of bookkeeping technologies you are already using, our experts will find a way to integrate them with our payroll and HR software.
FAQs About Switching Payroll Providers
Won't switching providers cause too much disruption to operations?
Choosing a new software vendor of any type is bound to cause a disruption. But, if you have significant performance gaps caused by your current payroll provider resulting in stress and disruptions anyway?
Identify the performance gaps and pain points with your current payroll provider. Then, set milestones for the switch: the date you sign up, migrate the data, test it out, and complete the transition. Workforce PayHub is also here to help you every step of the way with our personalized service to ensure a successful migration.
It's also best to schedule the payroll service transition during a slow period of your business cycle, or close to the end of the fiscal year, to avoid major disruptions in service and processing your payroll.
What if my payroll data doesn't migrate?
It's very reasonable to worry about data migration going wrong. To assuage these fears, you should run a data audit before migration. Run both your old payroll solution and Workforce PayHub concurrently to identify any discrepancies and input any missing data before the transition is complete.
What if my team doesn't handle the new solution well?
Cluing in your staff is key to a successful payroll service transition. When you switch to Workforce PayHub, you must give your employees plenty of advance notice. Solid communication and transparency are crucial for getting them involved early to ensure a successful transition from big box payroll.
Workforce PayHub offers customized and personalized payroll solutions with a level of service that big box payroll cannot provide. We strive to make every step of the transition process as painless as possible, and stay consistent with that degree of support long after onboarding is complete.
Ready for a smooth transition? Connect with a Workforce PayHub specialist today to simplify your payroll and HR processes!
