Switching payrolling suppliers can often be a challenging process.
Everything from contract negotiations, getting internal sign-off’s, C-level approvals, plus the challenges of implementing a new program’s processes, and training internal staff all eat up valuable time. Many companies stay with a supplier even if rates increase unnecessarily or other administrative problems occur solely because of the internal time investment needed to change.
As vendors rates slowly creep up into their pricing it’s important to continually look around at other possible suppliers. One effective strategy is to take advantage of vendors transition rates. You can continue to payroll the majority of your contingent workforce through your original source, but transition a handful of workers to a new vendor. This allows you to test the SLA’s, on/offboarding process and customer service of both suppliers in tandem. Internally, often a limited trial-run of a new vendor requires less approvals and justification saving you time from a full evaluation cycle.
An additional benefit of bringing in a second payroll partner is the ability to slowly wind down the original supplier’s payroll and not off-board or transition an overwhelming number of workers at once. Although payroll companies can handle large transitions, often your internal team is not able to facilitate it. Instead as contracts end or projects wind down you can bring on new hires with the new vendor, slowly phasing out old suppliers or move over by department or location allowing sufficient planning for training hiring managers or end-users on the new process.
Employnet offers transition rates are as low as 13.75% for office type workers, and 21% for light industrial. The extra cost savings of moving current payrolled workers over allows our future clients to do two things; test out our services and processes, and save money that can be used to justify the internal cost to switch. Typically we are offer transition rates to any workers brought on before the end of March, and will do an assessment of your current program for free. Our company has over 30 years’ experience in the contingent workforce space and our team is well versed on different program options from small startups expanding to new locations up to enterprise level MSP/VMS programs.