By Josh Donner

7th March 2025

When managed payroll isn’t really managed at all – know the signs!

When you signed up for a managed payroll service, you probably envisioned a hassle-free experience where experts take care of everything, leaving you with more time to focus on your business.

This is often the promise they sell you, but what happens when that promise starts to fade, and you find yourself doing more and more of the work?

If your ‘managed’ payroll is starting to feel like a DIY project, you’re not alone. In this blog, I will look at the warning signs, explain why this happens, and share what you can do to reclaim your time and sanity.

Warning signs your managed payroll is shifting to self-service

#1 More and more responsibility is being shifted to your team

The first ‘red flag’ is often when you find yourself responsible for entering data, fixing errors or manipulating your data to fit your provider’s prescriptive formats.

If you are looking at a new provider, it would be worth checking out how much of this you need to do before you sign on the dotted line.
If your current provider suddenly changes your processes or software, so you are doing more of these self-service tasks, you may want to consider if this service is what you actually signed up for.

#2 Support feels like a ghost town

If you have queries or problems, how responsive and accessible is your managed provider?

If you struggle to get answers or timely help from your provider, this seriously undermines their promise of expert support.

#3 Software that isn’t fit for purpose

Payroll is reliant on slick software, so it is important that any software or system is fit for purpose. Not all payrolls are equal, meaning that payroll software needs to be flexible and adaptable enough to cope with any idiosyncrasies of your payroll.
New or poorly implemented systems can leave you wasting precious hours on tasks that should take minutes. Or even worse, spending time fixing issues that should never have been issues in the first place.

#4 Mistakes are piling up

Errors are frustrating, but no service can always be 100 per cent perfect. But what compounds the frustration of mistakes is when they are repeated or if you are left having to try and solve them yourselves. That is definitely not what you signed up for with a managed service.

Why does this happen?

You may ask yourself why these issues occur? Surely, a managed payroll service should seek to deliver a customer experience that is as seamless as possible.

In my experience, there are several drivers for these problem areas;

Cost cutting – Some providers may quietly shift responsibilities to clients to reduce their workload (and their costs).
Over-reliance on tech – Automation is great, but without human oversight or customised configuration, even the best systems can’t catch everything.

Overworked teams – If your provider is stretched too thin, they might lean on you to fill the gaps.

How to take back control

If you find yourself in this situation, don’t give up on managing payroll. For many organisations, it remains the best solution for handling their payroll.

You can do some practical things to improve the situation (and the service levels).

#1 Revisit your agreement

Does the service you’re getting match what was promised in your service proposal? If not, it’s time to hold them accountable.

#2 Speak up

Let your provider know where they’re falling short. Clear communication can sometimes resolve issues quickly and get the service back on track.

#3 Consider your options

If your provider can’t deliver, it might be time to explore payroll services that actually live up to the managed promise.

At Ascend, we believe managed payroll should mean precisely that – fully managed, with zero headaches for you. Our experienced team ensures your payroll and pensions are accurate, compliant, and stress-free, and you and your team can focus on what you do best – running your business.

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