The contract for a new HCM system has been signed, and you are the Payroll Manager, leading the engine room of your organization.
By now, you should have a good idea of why you need a new system. Is the change necessary for scalability, better compliance, and reduced regulatory risks? Perhaps the drivers for change were the need for enhanced functionality, seamless integrations, easier interdepartmental collaboration, or improved support? Whatever the reason, you are preparing your team for a successful Go-Live while managing your day-to-day tasks.
Here are the top six critical components that can help you achieve a compliant and successful transition:
1. Consider the current state versus the future state
Review all high-level pain points that need to change. Consider items such as collating system-calculated timesheets (time records) or adding payroll entries (recurring earnings or deductions), which consume time during payroll processing. Can they be automated?
Are there manual approval processes (by email) that can be automated using workflows? If workflows already exist, are they fully automated? Are your current audit processes robust? Do you need more advanced reporting or alerts that highlight potential calculation errors, missing pay, and avoid compliance risks?
The implementation of a new system is a clear opportunity to introduce efficiency in all areas of payroll.
2. Prepare payroll data and deliver on time
If you agree with the term GIGO, “garbage in, garbage out”, you will agree that “bad data doesn’t just hurt reports and paychecks, it disrupts the entire system”.
If you get the data right, you will see how easy the remainder of the implementation process is. Use this opportunity to clean up dirty data. You should be mindful of format, especially dates, and remove unnecessary special characters. It’s a good time to ensure you maximize the use of all available fields in the new system and take time to understand how the data is mapped between systems.
Ensure that the data is accurate and delivered on time for the new HCM provider or consulting partner to load. Lastly, do not compromise on file security. Use IT-approved file transfer tools to exchange data and ensure only authorized users have access.
3. Take the lead on training to build a solid understanding of the new system
Irrespective of whether change management efforts are led in-house, by an HCM vendor, or by a partner, take the initiative to understand what this means to you and your team. Ask questions sooner rather than later to save a lot of time.
Understand the time commitment and timeline for completing the training required to become proficient in working in the new system. Assigning training for your larger payroll team will ensure that you are all on the same page, asking the right questions about the new system, and will leave you well-poised to challenge items that do not seem to align with your organization’s needs.
Request all available learning styles for the training (in-person, self-learning, or virtual) from your Project Manager. Additionally, be sure to take advantage of other support materials available, such as Knowledge Bases, FAQs, Guides, and Workbooks. Share these resources with your team.
4. Think of testing as the first line of defense and realize you can never have too much
Once you are in the testing phase, you will need to ensure there are no abnormal deviations in the calculations. Create test plans that will check all calculations, including:
Taxes,
Overtime,
Bonuses,
Benefits,
Retroactive pay,
Deferred compensation,
Year-end tax slips.
Take full advantage of the User Acceptance Testing (UAT) phase to ensure that all features and requirements function as agreed. Run parallel payrolls for at least one cycle to confirm results and carefully approve variances.
Remember, even after Go-Live, this process does not stop, as you will continue to audit payroll data for compliance, regulatory audits, and to improve payroll processes.
Collaboration with HR, Benefits, Finance, and IT is important as Payroll links all departments.
5. Consider integrations with external systems, particularly access, security, and data flows
Prepare early to provide all requirements to your IT team, external vendors, and your integration consultant to establish seamless integration and system access, and to meet prescribed security standards.
Identify issues with data flowing between HR and Benefits, Workforce Management, Payroll, General Ledger, and any external vendors.
Understand the Service Level Agreements (SLAs) and escalation procedures to mitigate issues and resolve problems quickly.
6. Keep compliance and continuous compliance improvement as the cornerstone
Ensure that the new system meets all Federal, State/Provincial, local regulations, remittances, year-end processing, and other regulatory reports. Understand the new system’s reporting and auditing capabilities to catch errors early, before your first commit. Continuously review audit processes to enhance them, ensuring they remain capable of handling shifting business and regulatory needs.
Remember, Go-Live is just a milestone, not the destination.
“An hour of planning can save you ten hours of doing”. — Dale Carnegie.
A successful HCM transition requires thorough preparation, accurate data, comprehensive testing, and effective leadership. By focusing on seamless integration, strong compliance, and ongoing improvement, Payroll Managers can transform system changes into opportunities for greater efficiency and accuracy. Go-Live only marks a milestone, but proactive planning ensures it leads to payroll excellence.
Now is the time to take charge of your Payroll transition. Start by evaluating your current processes, organizing your payroll data, scheduling your team’s training, and engaging with HRchitect through our pre-implementation planning services. Learn more about what sets HRchitect apart as an award-winning System Implementation partner. Contact us today to find out how to make your plan a reality. Your decisions today will shape the accuracy, efficiency, and resilience of your organization’s payroll operations for years to come.
Take the first step, gather your team, outline your plan, and begin the journey toward a smoother, smarter, and more compliant payroll future.
Lead proactively. Prepare intentionally.
About the Author
Alaister Azariah is a Senior Implementation Consultant at HRchitect, certified in US Payroll, and holds an MBA in Human Resources from the University of Aberdeen. Alaister has over 15 years of HCM expertise across the US, Canada, India, and the United Kingdom. His experience spans the Technology, Finance, Retail, and Professional Services industries. At HRchitect, he specializes in General Ledger, Payroll, and Data with strong capabilities in stakeholder engagement, technical support, and problem-solving. He is customer-centric and is recognized for his attention to detail and analytical approach, which deliver sustainable solutions.
Outside of work, Alaister loves road trips with family and friends. He is also an avid drummer.
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