Sage HR & Payroll Guide - Understand What You Need


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Sage HR & Payroll Guide - Understand What You Need

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Sage HR & Payroll Guide - Understand What You Need

  1. 1. Yourguide totheHR &PayrollBuyingCycle Stage One - Understand what you need
  2. 2. Stage One - Identify and understand your needs Review, reflect, research. Get a balanced view of what you need from your solution by including the people who’ll work with it. 2HR & P Buying Cycle StageOne Get the right people together The first step is to identify if you actually need new HR or payroll software, and if so, why. It’s important to consider different points of view, so make sure you include stakeholders from across your business at all levels, from senior directors to the administrators who will be using the system on a day-to-day basis. You also need to think about who to involve from other areas of the business, like your IT department, for example.
  3. 3. 3HR & P Buying Cycle StageOne If your current software is no longer being updated or supported, it’s a good time to see what other vendors have to offer. You will need to bear in mind timescales, particularly if you need new software in place for new legislation, like pension auto-enrolment for example. Think about when you want to be live and then work backwards from there. Remember to factor in time for decision-making. Current software being retired If you are changing your IT platform this may have an impact on your software and could influence your options. If you’re moving to new technology such as Windows 8, or your business has decided to outsource IT or bring it in-house, there may be different options available for your HR and payroll software. Change of IT platform Has your business outgrown your current system? Do you need more advanced tools? If you are using spreadsheets a lot or if your payroll takes a long time to run, then you may need to consider a system that better suits your needs. Outgrown old system capabilities Does your current system comply with new legislation? WIll it help you manage new legislation such as pension auto-enrolment? Also think about the future and what new legislation may be on the horizon. New legislation compliance Do you need to reduce costs? HR and payroll software can help reduce the burden of administration, improve efficiency and cut costs. It can also help you identify things like staff absences and turnover, which in turn can increase productivity and reduce costs. Even electronic payslips can help your business drive down costs. Cost savings Is there something that your current supplier can’t provide? For example maybe you need self-service functionality, salary sacrifice or electronic payslips. New functionality Bad experience with your current supplier? Sometimes you may feel your curernt supplier no longer meets your needs. Poor service from existing supplier Consider the ‘why?’ There are a number of reasons why you may need new software: Business restructure Business restructuring means lots of changes. Are your HR and payroll systems up to the challenge? Perhaps you’ve acquired a business and you have more employees or maybe there’s a new focus on training and development. Make sure your payroll and HR plans fit in with the wider business strategy.
  4. 4. 4HR & P Buying Cycle StageOne Consider the ‘what’ At this stage, you’ll be starting to gather thoughts about what you need and what the business is prepared to pay for. Key questions to consider are: • What type of software or service do you need? HR, payroll or an integrated HR and payroll solution? Or a payroll outsourcing service? An integrated solution can provide you with a more powerful and efficient solution for your business. Having HR and payroll software that works together can eliminate the duplication of data, reduce paperwork and reduce errors. Long-term this could save you money. But you may need to consider a staged approach, implementing one first. Consider what you may need now and in the future. If you are rapidly growing, make sure you think about what you’ll need a few years down the line and ensure the supplier can meet those needs. • What type of software delivery do you need? Installed, hosted or software as a service? In-house, installed solutions will give you more control and access to your data. But you need to consider the resources you have to support it. For example, if your IT infrastructure is already stretched, hosted or outsourced solutions may be a better option for you. • Is outsourcing an option? Outsourcing has some obvious benefits. The service provider takes some of the risk and it means you never have to worry about keeping up to date with the latest technology developments and legislation. It can also be very flexible. So you can choose to have a provider that does everything, or keep elements in-house and just outsource payslips for example. Outsourcing can be particularly useful if your HR or payroll wouldn’t function without key people in your business. • What are your financing options? An in-house solution will usually demand up-front costs, but once it’s installed it may work out inexpensive in the long run. Outsourcing, or software as a service usually have lower initial costs, but you keep paying for them as long as you use them. Think about the total cost of ownership and what’s best for your business. • What functionality do you need? What is important in your organisation? Do you want employees and managers to be able to manage their own HR data? If, so, then self-service can help you share information such as policies, job vacancies, and training courses with everyone that needs it. What would benefit your employees? If you have a lot of remote workers, would it be easier for them to access their HR information via a mobile device? Do you have a high turnover of staff? Do you spend a lot of your time on recruitment campaigns and processing new starters? Look at how software can help you streamline the process and whether you want to incorporate recruitment into your company website. Do you have a high number of temporary, seasonal or hourly paid workers? Would it help if your software could automate auto-enrolment for pensions? If your pension provider handles this, then think about how that links with your payroll software. Would it be better to be handled within your payroll software? What reports do you need to produce? Do they cover HR and payroll? If so, think about the benefits of an integrated solution. Think about what information you need to be able to report on such as absence and turnover.
  5. 5. 5HR P Buying Cycle StageOne At this point you should create a ‘wish list’ of features. • Assess your current position What current workarounds do you use? What is coming up that you need to consider? Do you need a new system or just some time invested in your current one? Buying a new HR and payroll solution will cost money, but what’s the risk to your business if you do nothing? This is a great time to review your current processes and see where you can make improvements. • What support and services do you require? Do you need a support desk that can offer longer opening hours? Do you want a UK based support team? Consider what expertise you have in-house and how much support you will need before, during and after installing new HR or payroll software. If you have key person dependencies can your service provider help you out in an emergency, by running a payroll, for example? Think about your resources What resources and expertise do you have available and what do you need? Be realistic. Managing a project to introduce new HR or payroll software is time intensive and it can be difficult to do alongside a day job. Think about your current workload and what time you can dedicate to the project. Outside of the usual payroll and HR team, you may also need: • An IT professional to help you consider the platforms • Somebody from procurement that has contract experience • A dedicated project manager - this could be someone in your business or a specialist who understands implementing HR and payroll solutions Think about when you need to be live and work backwards, allowing enough time to select, negotiate and purchase your new solution. At this point you should start researching the marketplace and seeing which suppliers offer you advice and support. Researching the market place There are numerous resources to help you research the market before you begin your selection process. To research the market, understand the solutions, shortlist potential suppliers and organise the first round of meetings can take about three months. Supplier websites Supplier websites are a good place to start. These will give you a good overview of what they offer and you can request brochures and product information. They will often contain other resources such as white papers and guides that you may find useful. You will probably already know of a few suppliers you want to consider, but it is always a good idea to use a search engine such as Google to search for HR and payroll software.
  6. 6. 6HR P Buying Cycle StageOne Publications, websites and magazines Third party publications and websites may contain supplier directories which will help with your research. You can also sign up to their newsletter and read their blogs for useful content. Click on the links below to direct you to the sites: People management Payroll World Pay and Benefits HR Magazine Personnel Today The HR Director Purely Payroll HRZone Ask your colleagues Don’t forget to ask your colleagues! What software have they used in the past? What was good or bad about it? Also consult with colleagues in other departments. What software do your finance or accounts department use? Does that supplier also do HR and payroll software? Social media Social media is really useful for communicating with other people in your industry and sharing advice and experiences. Join relevant LinkedIn groups and follow relevant organisations or influential individuals on Twitter. Read blogs and participate on online forums. Click on the links below to direct you to the sites: People Management CIPP Sage HR Payroll Payroll World HRZone Purely Payroll HR Magazine Professional Associations There are two main professional bodies within the industry, The Chartered Institute of Personal Development (CIPD) and the Chartered Institute of Payroll Professionals (CIPP). CIPP The CIPP has more than 5,000 members and is the UK’s leading provider of qualifications, training and consultancy for payroll. It has a Pensions Faculty responsible for delivering qualifications and membership services to those responsible for public sector pensions. CIPD The CIPD is the world’s largest Chartered HR and development professional body. As an internationally recognised brand, it has over 135,000 members and supports and develops those responsible for the management and development of people within organisations.
  7. 7. 7HR P Buying Cycle StageOne Comparison sites This is a great way to compare HR and payroll suppliers. Click on the links below to direct you to the sites: HRcomparison helps you identify and connect with the closest matches to your HR and payroll software needs. The HRIS Selector Tool will take you through a series of questions, enabling you to select Applications (e.g. HR software, Payroll software and Time Attendance), Modules (e.g. Absence, Employee Self-Service) and then Features (e.g. Multi-currency, Audit Trail) within the Modules. Quick Product Search will give you a fast overview, and draw up a shortlist based on the features you select. Exhibitions and events Historically exhibitions were a great way to compare suppliers together under one roof. Nowadays, it’s a bit easier to do the same research without taking time out of the office, but here are some key exhibitions and conferences: HR Software Show This is the main software show where you can meet HR and Payroll software and technology suppliers. CIPD Annual Conference and Exhibition The CIPP Annual Payroll and Pensions Conference and Exhibition HRComparison website Online and virtual events such as webinars and webcasts can be useful in your research too. When you have established the basic principles for what you need and have a good idea of what’s available, you can start to put your business case together. Move on to Stage 2 for guidance, tools and support on building your business case.
  8. 8. If you’d like this information in an alternative format, call Customer Care on 0845 111 66 66 or email so we can consideryour request Sage (UK) Limited, 4 Witan Way, Witney, Oxon, OX28 6FF t: 0800 694 0568  |  f: 01993 709 300  |  e:  | Registered in England No. 1045967 and with its registered office at North Park, Newcastle upon Tyne NE13 9AA  04/13  5451HD