What Are the Pros and Cons of Changing Payroll Systems?


Quick Answer

Some positive aspects of changing payroll systems include paying less money to operate and maintain a system that is unnecessary, gaining new features and saving time processing payroll. Some negative aspects include the upfront cost of a new system and the learning curve of adopting a new system.

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Full Answer

It is important for any business to have a payroll system that meets the company's specific needs. For example, if a company gains dozens or hundreds of new employees, it may need to change its payroll system to one that can handle the new company size in a timely and efficient manner. In some cases, small companies must switch from a manual payroll system to a computerized or cloud-based system in order to avoid wasting employee time manually processing the payroll for the entire company. In this case, changing the system increases overhead but also increases productivity, as it decreases the time commitment from the human resources department.

Changing from one payroll system to another also comes with some downsides, many of which are associated with training employees. While many online and computer-based payroll systems feature both physical or digital documentation and customer support, it can take days or weeks to learn how to fully utilize a new system.

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