Payroll Briefs

The Hidden Costs of Poor Customer Service from Your Payroll Provider

August 29, 2023

When it comes to running a business, efficient and reliable payroll is vital for maintaining employee satisfaction and organizational success. Unfortunately, not all payroll providers offer the same level of customer service, and the repercussions of receiving subpar support can be significant. Below, DM Payroll Solutions highlights the hidden costs that businesses may face because of poor customer service from their payroll provider.

  1. Decreased productivity – One of the immediate impacts of poor customer service from your payroll provider is the loss of productivity within your organization. Delays in response, errors and unresolved issues can consume valuable resources and time, diverting your Human Resources (HR) teams from more important tasks.  
  1. Increased expenses – Poor customer service from your payroll provider can result in unexpected expenses. Unresolved issues may require you to allocate resources to address problems that should have been resolved by the payroll provider.  
  1. Employee dissatisfaction – Payroll is a fundamental aspect of the employer-employee relationship and any disruption to employees getting paid correctly and on time can negatively impact employee morale. When payroll issues arise and remain unresolved due to poor customer service, employees may experience delayed or incorrect paychecks, discrepancies in benefits or difficulties in accessing necessary payroll information. These problems can lead to employee frustration, reduced trust in the HR department and organization, and ultimately the decision to leave the company.  
  1. Compliance risks – Compliance with tax regulations, labor laws and reporting requirements is critical to any organization. However, a payroll provider with inadequate customer service can put your organization at risk of non-compliance. In turn, this leads to financial and legal consequences significantly outweighing any potential cost savings from choosing a less expensive, yet poorly supported payroll provider. 
  1. Reputation damage – In today’s ever-increasing digital world, news spreads quickly and a negative experience with a business can easily go viral. An example of this may include bad online reviews. Rebuilding a damaged reputation can be a long and challenging process, with lingering effects on your bottom line. 
  1. Opportunity costs – Choosing to outsource your payroll is an investment in your business. However, bad customer service can prevent you from fully leveraging the potential benefits of that investment. If your payroll provider fails to provide adequate support, it can limit your access to new product features, updates or training opportunities since you are so focused on fixing the issues at hand. This can impede your ability to innovate and optimize operations. Over time, missed opportunities can lead to stagnant growth and hinder your business’s ability to adapt to changing market dynamics. 

When considering a payroll provider, make sure you are looking at the entire package. The hidden costs associated with bad customer service could far outweigh the initial savings. Investing in a payroll provider that prioritizes responsive, knowledgeable and supportive customer service is essential for ensuring smooth operations, maintaining employee satisfaction, mitigating compliance risks, safeguarding your reputation, and ultimately, protecting your bottom line.   

At DM Payroll Solutions, we understand the importance of having highly educated professionals guiding our clients through the payroll process. That is why our customer service team consists of four-year accounting-degreed staff, specializing in all aspects of payroll processing. Our team takes the time to deliver interactive training on our platform, service solutions to meet your day-to-day challenges and answer any question that arises. When you have a payroll-related question or concern, trust DM Payroll Solutions to be there with a personalized solution for you. Contact us today to learn more about how we support our clients with “all things” payroll.