Ultimate guide to changing your payroll provider

In our 2025 Annual Payroll Survey, of the respondents who haven’t switched payroll providers, 61% said they considered switching but didn’t go through with it.

For those who still face barriers to switching, we’ve identified some common challenges – and more importantly, practical ways to address and overcome them.

More convenient to stay with your current supplier?

Over 20% of our survey respondents said this was the reason they didn’t switch to a new provider.

A number of factors drive this, one in particular is a lack of resource. Perhaps you’re worrying that switching takes time and effort, and everyone’s already swamped. But choose the right provider and the switch shouldn’t need much person-power at your end – your provider should do most of the work.

Too much hassle to switch?

Learning to use new software sounds like hard work, right? Building a relationship with a new provider, getting used to new processes – what a pain! That’s what 21% of respondents thought in our survey when we asked them why they hadn’t switched.

But what happens if you don’t switch? Think long term.

If you’ve realised there’s a better payroll solution and service out there, what will that save you in time and money? Plus, if you pick the right provider, it won’t be a hassle to switch – they’ll make sure it’s easy.

Not enough incentive to move?

This was the top reason cited for not wanting to change, with 27% of respondents reporting this.

If this is also how you feel, you may need to weigh up exactly how inconvenient being with your current provider is in comparison with the promises of your new provider. Although you may need to do a bit of organising to enable the move, the benefits of getting a better payroll provider can include reduced admin, fewer employee queries, less (or no!) payroll mistakes and improved compliance. All very valuable goals and worth the effort to get there.

Unable to secure investment?

You’re not alone. The number of respondents who reported this issue rose by 9% since 2023, with 22% of people reporting this as their main reason for not switching.

To overcome this one, you need to get really clear on the numbers. Like how much time does it currently take to process the payroll? What could this be reduced to? How many mistakes are being made? What could this equate to in time-cost-savings with a new provider?

Conveying all of this to your stakeholders should make it difficult for them to say ‘no’ to investing in a switch.

Too much risk?

Your payroll contains lots of highly sensitive data.

Perhaps the thought of lifting this from one provider and shifting it to another fills you with dread!

But this should be covered as part of your selection process. Ask providers about data security, certifications, employee qualifications, and check out their service reviews online.

Perhaps you’re also worried learning a new system will lead to user-error, which could mean catastrophic payroll mistakes. Again, cover this when you speak to different providers. What level of training and support do they provide? And how intuitive is their software?

So you’ve chosen a provider. Now it’s time to think about the switching process.

Some of this will be out of your control – which is why it’s crucial to ask any questions upfront as part of your selection process.

Hopefully you’ve chosen a provider who prides themselves on a simple, stress-free switch, and you’ve verified this with some good references from recently onboarded customers. To help things along at your end, here are some key considerations to ensure your switch goes smoothly.

Communication

Switching to a new system will affect different employees to varying degrees. Day-to-day users of the system will need regular communication and support. To gain their buy-in, explain why you’re switching and the benefits it will bring. Also, tell them what support and training they can expect and who they can contact if they have questions.

You can ensure a positive employee experience across the business by communicating the change to them too. Announce when the new system will go live and drum up excitement – why not give them a sneak peek?!

Resourcing

Whilst your new payroll provider will be responsible for the bulk of the work associated with switching, you’ll be required to dedicate some time to the switch as well.

The main time-consuming task will be extracting your data. Ideally, your new provider will be able to help with this, making the data extraction a little easier. They should also help to manipulate the data into the correct format, so it will easily import into your new solution.

Training

Getting the payroll wrong, entering incorrect data and making erroneous payments can be costly! Think HMRC fines and employee morale. As such, it’s vital that day-to-day system users are fully trained. Not only will this reduce the risk of mistakes, it may uncover hidden product features that save time. Plus, a good payroll provider should give you advice that improves your payroll processes.

Further, for your employees, make sure user-guides or screen recordings on things like ‘how to access my payslip’ are readily available.

We know there are businesses out there that are reluctant to change to a new payroll provider. Perhaps because they’ve previously had a bad experience when switching.

But why was that?

Well, what process did they follow when switching? For instance, how robust was their selection process? What questions did they ask about the switch itself? And what did they do internally to enable a smooth switch? If you pick the right provider who can meet the requirements of your business, and you agree the terms of your switch i.e. timelines, duration, resourcing, and training and support; you mitigate the risk of a messy and ‘difficult’ switch.

Perhaps the people who found their switch difficult weren’t armed with the right guidance and support on how to carry out a successful switch. And this led to a disappointing and stressful experience.

If you’ve already concluded that your current provider isn’t cutting-the-mustard, then whatever the perceived short-term cost of a switch – time, money, stress – it will undoubtedly cost more long term if you stick with your current provider.

Further, now you’ve read this guide, you’ve hopefully realised that switching – when done right – can be easy. Don’t be scared of switching because of the negative experiences of others, or because of the barriers to switching.