Here are some questions we thought you might be asking as you look into alternative services. (Oh, and the answers, too, of course):
Does Size/Scope Matter?
While the payroll field is dominated by a few major national firms—such as ADP and Paychex—some schools are successfully using smaller or more regional vendors. As long as the vendor has sufficient expertise and resources to meet your school's needs—such as multistate expertise if you draw employees from more than one state of residence—the size and scope of the vendor may not be of significant concern in most cases.
Do They Specialize in Helping Small Businesses?
Since most private-independent schools operate similarly to small businesses in terms of the level and complexity of their payroll needs, it is important to know if the vendor specializes in small business payroll processing—or if the vendor has a division or department with this specialty. A firm or division specializing in small business may be more likely to understand and be set up to accommodate your school's payroll needs—and may be more likely to have systems, tools, and resources that are designed to support these needs.
Price, Price, Price
If you are happy with your current vendor but a competing vendor offers a better price, several questions arise.
- Is the lower price "worth" the changeover costs and operational disruption that ordinarily accompany change in vendors and systems?
- Will your current vendor agree to "match" the proposal and reduce its fees?
- Will they agree to a multiple year price guarantee? (Beware of hefty price increases after the first year.)
Does the price you were quoted include all fees? Or, are "extras" (such as additional monthly or ad hoc reports) available, but at an additional fee?
Consider—does using other modules (such as payroll, benefits, and HR together) tend to "lock you in" and make it difficult to change vendors if you are unhappy with the service (or system) in one of the areas?
