How To Switch HR & Payroll Companies: 10 Steps For HR & Payroll Migration

How To Switch HR & Payroll Companies

Payroll is the compensation that the business owes the employees for their hard work. With a set period, it is managed by the HR or accounting department in big companies. Payroll needs to be processed according to the prevalent tax norms in your country. These are tedious but crucial tasks.

Payroll processing is time-consuming. Doing it manually can be harrowing, so you use the software. Payroll software is an on-premises or cloud-based system. It helps process payroll efficiently and without stress. HR software used by companies includes software like MyPiHR.

What is Payroll Migration

You may have the best payroll software to help you compute expenses, calculate taxes according to the local law, and manage your employee’s compensation. But is it the best? You need to continuously evaluate your HR and payroll software and analyze when you need to switch.

The process of switching from one payroll software to another is called Payroll migration. You effectively change your payroll solution provider. Migration of Payroll involves the following.

·         New provider or software selection

·         System customization as per your need

·         Historical data migration

·         Resuming Payroll in the new system

Let’s examine why and how to do payroll migration.

Why Payroll Migration Occurs

You might want to change your Payroll software for several reasons. You may be dissatisfied with your current software. Or you might merely want to try a new software like the payroll software in Bangladesh, MyPiHR. Some reasons to migrate are listed below.

·         Advancement of technology has made your current software moot

·         Your organization needs have changed

·     There has been a budget increase or decrease, which doesn’t work with your current software.

·         Your company is going through a merger or acquisition and changing payroll software.

Before you migrate, ensure that you ask important questions so that you don’t waste any money. Ensure you have the necessary features and technical support in the new software before migrating.

How To Switch HR And Payroll Software?

When you want to switch your HR and payroll software or provider, do not hesitate. Follow the step-by-step instructions given below and make the change. While this transition may be time-consuming and overwhelming, these steps will make it easier for you.

1.Schedule A Payroll Demo

The very first step is to get a demo from several payroll providers. Do this without letting go of your current provider. This is crucial so that you can find out the payroll software available in the market. You can analyze and identify which ones meet your organization’s needs. MyPiHRthe Payroll software in Bangladesh, provides a demo and provides excellent payroll solutions.

2.Talk To Your Current And New Providers

Before you decide to schedule payroll demos, you need to talk to your current providers regarding termination notice. You need to understand what it will take to switch HR and payroll software. Find out if you need to pay a fee and how to transfer all data too.

Once you demo some payroll software and shortlist the best ones for you, you need to talk to them about the transition. Talk to them about integrating your old data into the new system and about the transition timeline.

3.Request A Proposal

While talking to your new HR and Payroll software providers, request a proposal. Ensure you have all your payroll information in hand and you have clarity on what you need. Ask the new providers to give you a proposal with breakdowns so that you can choose your modules and features according to your budget.

4.Get Your Information Into The Right Hands

As a part of requesting a proposal, the new provider might need the information to make the transition smoother for you. These include your organization name, history, payroll information, payroll schedule, authorization documents for the new provider to perform the services, and more.

Make sure this information reaches your prospective new provider safely. These will help the HR and payroll software provider give you an apt proposal. They will be able to recommend necessary modules and services according to your requirement.

5.Build A Business Case

When you decide on some new HR and Payroll software service providers, you need to make a business case. You need to present your options, proposals, and cost-benefit analysis to get approvals from the decision-makers.

6.Review Your Contract

While talking to your old providers, this step will give you a stable ground to stand on if you missed anything. After getting approval to switch payroll software, you should review your contract. This will explain your responsibilities and penalties if any, while transitioning.

7.Provide Notice And Request Reports

After your decision is made, provide notice to your current payroll software provider, as discussed before. Make sure you request copies of various reports like pay stubs, employee records, and payroll register reports.

8.Coordinate Tax Filings

If you are switching companies mid-year, end of the year, or end of the quarter, it is easier. Changing payroll software providers mid-quarter is not recommended. This will make tax filings a hassle.

Depending on when you are switching, you need to decide who will handle the tax filings. You need to ensure that your new and old payroll software providers are on the same page.

9.Inform Key Stakeholders

Informing your stakeholders, employees and any other staff who will be affected by the change is vital. You need to provide training and equip them with the new HR and payroll software’s handling.

10. Transition And Go Live

Finally, once you have completed all the steps, you can go live. Make sure you review your HR and Payroll software with extra care the first time to correct any discrepancies.

Following these steps will smoothen the transition from your current to new HR and payroll software.


While migrating to a new HR and payroll software, you may consider an HR software used by companies, MyPiHR. MyPiHR offers a complete solution for Human Resource Management and Payroll Processing. It is the best HR and Payroll software in Bangladesh and helps small, medium, and large-sized businesses.

Some key features offered by MyPiHR include the following.

·         All-in-one HR Tool

·         Automated Payroll System with smooth transitioning

·         Attendance Monitoring System

·         Security which will protect your data

·         Self-service so your employees can perform some essential functions.

MyPiHR offers HRM and Payroll solutions at reasonable prices. They offer training and help in smooth transitioning too.

Final Notes

Switching HR and Payroll software providers can be an overwhelming task. Breaking down the steps and taking baby steps can make the task less daunting. Read through the whole article carefully, and you will have the ease of switching software at your fingertips.

We have also highlighted the best HR and Payroll software company in Bangladesh. MyPiHR, with its unique features, affordability, and ease of use, will make your organization heads happy. This software comes highly recommended for its features of managing salary, attendance, employee management, and more.

You will solve your current software problems if you quickly switch to MyPiHR or another HR software used by companies by following the steps!

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