If you outsource your payroll, when did you last properly review your payroll provider? If you’re like most School Business Managers, the honest answer is probably “not recently enough” – or perhaps “not since we first appointed them.”
It’s an understandable situation. Once payroll is running smoothly, it tends to drop down the priority list. Staff get paid on time each month, the provider seems competent, and there are always more pressing issues demanding your attention. But this “if it ain’t broke, don’t fix it” approach could be leaving your school or Multi Academy Trust exposed to unnecessary risks and costs.
Here’s why regular payroll provider reviews should be firmly on your agenda.
Compliance and risk management
Payroll legislation doesn’t stand still. From pension auto-enrolment changes to minimum wage updates and tax code modifications, there’s constant evolution in employment law and HMRC requirements. Your payroll provider should be proactively managing these changes, ensuring your school remains compliant without you needing to chase updates. And, with the complexities of education payroll and pensions, keeping on top of any changes is even more important.
The risks of non-compliance are serious, including financial penalties, reputational damage, and the administrative nightmare of correcting historical errors.
A review helps you assess whether your provider truly stays ahead of legislative changes or merely reacts to them.
- Are they providing regular compliance updates?
- Do they have robust processes for implementing changes accurately?
- When regulations change, do you hear about it from them first – or from worried staff members?
Efficiency optimisation
Payroll processes that worked perfectly five years ago may now be unnecessarily cumbersome. Technology has advanced significantly, offering automation opportunities that could save your team hours each month. Perhaps you’re still manually submitting spreadsheets when seamless system integration is available. Maybe staff are chasing paper payslips when secure digital access would be simpler.
Inefficient processes don’t just waste time – they increase error risk. Every manual data entry point is an opportunity for mistakes.
A thorough review examines whether your current provider offers the technological capabilities you need, and whether you’re actually using the features you’re already paying for.
Value-for-money analysis
Are you confident you’re getting good value? Payroll pricing has become increasingly competitive, yet many schools continue paying rates agreed years ago without questioning whether better deals exist. More concerningly, some providers gradually increase fees year-on-year, banking on customer inertia.
Value isn’t just about the headline price. It’s about what you’re actually receiving for your money. Does the service include year-end support, pension administration, and compliance updates, or are these charged as extras?
A proper value analysis compares your current arrangement against market rates while considering service quality and scope.
Service quality evaluation
Monthly payroll might run smoothly most of the time, but how does your provider handle problems or queries? Can you get hold of them easily? And if there is an issue, is it resolved quickly and efficiently?
Service quality degradation often happens gradually. Response times creep up, the processors you got to know move on, or the provider restructures, leaving you dealing with different people each time.
Regular evaluation ensures service standards remain acceptable and that any deterioration is addressed before it becomes problematic.
Hidden costs identification
Hidden costs lurk in many payroll arrangements. Perhaps you’re paying separately for services that should be included. Maybe inefficient processes are consuming more of your team’s time than necessary, creating substantial internal costs that don’t appear on the provider’s invoice. Some schools discover they’re paying for premium service levels they don’t actually receive, or for software features they can’t access.
A comprehensive review brings these hidden costs into the light, quantifying the true cost of your payroll operation.
The resource challenge
Reading this, you might be thinking, “Yes, we should review our payroll provider – but when?” It’s a valid concern. Conducting a thorough, meaningful review requires time, expertise, and objectivity that many schools simply don’t have available internally.
Your team is already stretched and can’t take on another task. Or maybe you lack the specialist payroll knowledge in-house needed to properly evaluate technical compliance and service quality.
This is precisely where independent specialists like Quarry Payroll Consulting add value. They bring the expertise, time, and impartial perspective needed to conduct a comprehensive payroll review. You’ll receive clear, practical recommendations based on thorough analysis – without diverting your team from their core responsibilities.
Don’t let payroll drift. Contact Ian Davidson at Quarry Payroll Consulting for an independent payroll review that could save your school money, reduce risk, and improve efficiency.
And, as an exclusive offer for this Forum, the first five schools, academies of MATs that request a Payroll Review, will receive it for FREE. All we ask is that you agree to be a case study.