FAQ: Choosing the Right HCM Technology for Your Payroll Service Bureau 

The importance of payroll cannot be understated. Employees and businesses count on it; the question is can you count on your payroll and HR technology to meet the needs of the people counting on you? 

When payroll is working properly, it should go unnoticed—like a well-oiled machine doing its job month after month. People get paid on time and accurately, and workers and their employers are happy and can focus on their job or business purpose. In that scenario, payroll is like a clock ticking on a mantle that always strikes at 12 o’clock as it should. In other words, you can count on it to happen when it’s supposed to happen. 

But if there is a problem … 

When payroll is off in any way, it can be as if time stood still. It’s an uncomfortable situation that no one has extra time to deal with. Not paying people on time and accurately can lead to costly compliance penalties, too. 

As a Payroll Service Bureau, you know how important advanced Human Capital Management (HCM) technology is, but are you getting everything you need to help your business grow?   

From streamlining onboarding to managing compliance and payroll, the right HCM platform can be a game-changer. But with so many options available, how do you choose the best one for you and your clients? 

Don’t worry. We’ve got you covered. Here are some Frequently Asked Questions (FAQs) to help you make the right decision for you and your clients. 

10 FAQs About Choosing the Right HCM Technology 

1. What is HCM technology and why is it important for Payroll Service Bureaus—and their customers? 

If you’re new to the Payroll Service Bureau world or just kicking the tires, HCM technology integrates payroll, people management, data reporting, benefits administration and compliance into a single platform. For Payroll Service Bureaus, HCM technology is essential because it enhances operational efficiency, improves client satisfaction and provides a competitive edge.  

2. What should I look for in an HCM technology provider? 

Several key factors should guide your selection: 

• Reputation: Choose a provider with a solid track record in HR tech. Look for client testimonials and industry recognition.
• Financial Stability: A vendor backed by private equity or with a large customer base is more likely to be able to invest in innovation that benefits you and your clients long term.
• Industry Commitment: Participating in and sponsoring events like the Independent Payroll Providers Association (IPPA) Spring Summit shows dedication to both the industry and keeping up with trends.

3. How do I evaluate a provider’s scalability? 

• Scalability: Ask whether the platform can grow with your business. Can it handle increasing data volumes, users and new features? Scalability ensures long-term value and adaptability as your needs—and, most importantly, your clients’ needs—evolve. 

4. What role does compliance play in choosing an HCM platform? 

• Compliance: With varying state, local and federal regulations seemingly in a constant state of flux, a good HCM provider helps you stay compliant with payroll and benefit laws across states, jurisdictions and, of course, federal, reducing legal risks and administrative burdens. With ever-changing regulations, your Payroll Service Bureau cannot afford to not be up to date on HR and payroll regulations. 

5. How important is customer support? 

• Support: How important is a hull on a ship? Yes, it’s that important. Being able to get answers when you need them most is essential for any Payroll Service Bureau that has clients running payroll and managing HR. In other words, all of them.  Look for vendors that offer responsive, knowledgeable support that’s easy to access. Ask if they provide a dedicated Customer Success Manager (CSM) and conduct regular satisfaction surveys to ensure service quality. 

6. What should I know about the implementation process? 

• Implementation: This can make or break your experience out of the starting gate. A robust platform may take longer to deploy, but it’s worth the time, effort and investment. Poor implementation can lead to data issues, training failures and change management problems. Talk to current customers about their onboarding experience. 

7. How do I assess the HCM platform’s security? 

• Security: Security is nonnegotiable in today’s digital world. When you’re seeking an HCM platform, evaluate:
  • Data Protection: Look for encryption, firewalls and intrusion detection.
  • Compliance: Ensure System and Organization Controls Type 2 (SOC 2) certification from an independent auditor.
  • Disaster Recovery: Ask about backup procedures and Data Center Security.
  • Access Controls: Multifactor authentication (MFA), single sign-on and role-based access are essential.

8. What makes for a good user experience (UX) in HCM software? 

• User Experience: Modern users expect visually appealing interfaces that are intuitive to use. A Unified Employee Experience (UEX) helps employees and managers navigate the system easily. Request demos to test usability—try creating a new employee profile to see how seamless the process is. 

9. Is mobile access necessary? 

• Mobile Access: It’s not only necessary; it’s mandatory in today’s on-the-go business world. Mobile capability is critical in today’s workforce, especially for younger workers who grew up using it from early on. Ensure the platform offers responsive design and works well across devices and operating systems. 

10. What else should you find out? 

• Some questions you should ask a vendor:
  • How long have you been in business?
  • How many worksite employees does the platform support?
  • Does the system offer Performance Management?
  • How easy is it to add new clients?
  • How does client invoicing work?
  • Can the system be custom branded?
  • What support is offered and how accessible is it?What is the pricing structure, and what enhanced features do you offer?

Bonus question: What about checking out PrismHR HCM? 

PrismHR has been a leader in HR technology for over four decades, serving Professional Employer Organizations (PEOs). Now, Payroll Service Bureaus can benefit from PrismHR expertise. The PrismHR HCM platform offers secure and innovative tools for payroll, benefits, compliance and more—all with a modern, intuitive interface. 

Investing in HCM technology is a strategic decision. The right platform can streamline operations, enhance client satisfaction and future-proof your business. Take the time to evaluate vendors thoroughly, ask the right questions and prioritize features that align with your goals. 

For more information or to schedule a demo, contact us or email sales@prismhr.com.