Managing payrolls during an acquisition is a tough task because there are many things to consider before outsourcing your payrolls. Payrolls have a significant part in the organization because it would determine the feasibility and the impact that it creates on the expenditure of the company.
Many decisions would change during an acquisition or a merger because new managers and CEOs would want to tighten things when it comes to financial matters and improves the productivity. When it comes to payrolls, Mostly the Payroll decisions are made by the HR Departments, Payroll Managers, and CIOs.
Assess the payroll
When there is an opportunity to purchase a new payroll system, you must thoroughly analyze the functions of the new payroll and compare them with the old one. You can compare them by assessing the features, ease of use, its ability to integrate with different software, customizability and other requirements based on the company.
Retrieve every payroll data
The most important duty when there is a need to change the payroll, one must copy all the valid information from the previous payroll carefully and transfer them to the latest one. The new payroll must be able to integrate with the old one so that all the valid information is transferred securely. Even if a minute detail is mismatched, it could cause the company a fortune.
An HR’s role during acquisition
Time is significant during transitions because it would become challenging when payroll software is changed during financial year endings of banks. You could at least use both the new and the old software simultaneously and wait till you find any glitches in the software. If you see any, you could use the old software. If you do not find any errors, you could go for the new payroll software.
Have a finite plan
The most important resource needed for a successful payroll transfer is to have an idea and strict to it. The deadlines and the timeframes can be made to complete every task be it small or large.
Inform the employees’
Changing a payroll software also involves employees’ in an organization because they also have to migrate to a new software entirely. Inform the peers about the transition and give them enough training on the latest software and provide them will all the other intricate details. This would allow a smooth transition.
Companies have different strategies to maintain which have been derived from a lot of insights and improvements of previous methods. The software must also comply with the organizational strategy like following prescribed methods from recruitment to retirement. This would be an added advantage if the payroll gels along with the company.
The software must be very sophisticated in design but very easy to use, or else it would take a lot of time to understand the software. The payroll must be able to adapt to every need of your company like a shoe. This would reduce the time for training and also improve the workflow of the software.
Who controls the data
The data in a payroll software contains very sensitive information and must be given authority only to few managers and administrators of an organization. Few payroll software has a finite structure of giving power to specific candidates of the company. A flexible payroll allows only managers and the other required personnel to view your information.
Ensure the software commits to payment policies
There are different tax laws and different payment systems. When you file the wrong tax payment, you would be entitled to pay massive penalties. Before moving to new software, ensure that it complies with the payment policies of the company and the country alike.
For more information on any other time-saving features that HR2eazy has to offer, feel free to get in touch with our Payroll Malaysia support team at any time. We seek to provide a delightful online payroll solution for SMEs, start your payroll journey today with us!