A Sit Down With Our CEO - Typical Project Failure
We interviewed our CEO, Will Jackson and asked his thoughts on why payroll projects typically fail. Here’s what he had to say:
Most payroll projects fail not because of technology, but because people feel unable to pause, admit something is off, and change course without “losing face” or “throwing away” money already spent. Will’s opinion is that the most successful projects tend to be the ones brave enough to stop, reset and reframe the whole approach before the damage becomes terminal. He explained that in any situation in life, an outside perspective can make all the difference, payroll projects are no exception.
Why Payroll Projects Really Fail
When asked why payroll projects really fail, Will explained that there are many reasons a project is at risk of failure, but most can be grouped into these three categories:
Loss of face at senior level. Leaders often press on with struggling implementations rather than admit scope, supplier choice or internal readiness were misjudged, even when warning signs are clear.
Good money after bad. Sunk costs drive further investment into a flawed path instead of stepping back to reassess requirements, configuration and governance.
No structured reassessment point. Many programmes lack explicit “stop and review” gates around design, testing and go live, so misalignment between standard software and complex payroll rules only surface when it is too late.
When Pressing On Led To Failure
We found some examples of when payroll projects failed:
A Northern Ireland Civil Service HR and payroll project ran for years despite clear evidence the supplier’s standard package did not match complex public sector requirements, ultimately being cancelled at a direct cost of around £3.3 million plus over £6 million in unrealised savings.
The NHS payroll program became one of the most consequential technology breakdowns in modern public sector history. What began as an ambitious plan to modernise HR and payroll for more than one million NHS employees ultimately spiralled into a multi‑year crisis involving payroll chaos, parliamentary scrutiny, legal action, and hundreds of millions in financial losses
Analysis of wider UK government projects shows a recurring pattern of ambitious scope, ignored risk indicators and political pressure to “deliver something”, even when fundamentals like integration, ownership and accountability were not in place.
Across HR and HCM transformations globally, experts consistently report that projects tend to fail not because the core software is incapable, but because governance, stakeholder support and change management are weak and no one feels safe to call a halt.
When Stopping Changed The Outcome
We also found some examples of when payroll projects succeeded:
Turnaround specialists in ERP and HCM regularly describe clients who paused failing rollouts, revisited objectives, clarified roles and built proper change management and training, then relaunched successfully on the same or a refined platform.
Successful payroll transformations almost always begin with a fresh evaluation of current processes, data quality, integrations and KPIs, rather than assuming the original business case and design are still fit for purpose.
Where organisations deliberately phase implementation, test thoroughly and adjust scope before full cutover, they typically see better adoption, fewer errors and more sustainable benefits.
How To Build “Pause Power” Into Payroll Projects
Will provided some insight on how to prevent payroll project failure, we compiled this into four simple ideas:
Hard-code review gates. Define clear decision points where leadership must consciously choose to continue, change direction or pause, using evidence from testing, readiness and stakeholder feedback.
De-signal failure. Create a culture where calling out misfit requirements, unrealistic timelines or under-resourced teams is seen as stewardship of the business, not a career risk.
Focus on outcomes, not ego. Anchor every decision in the core purpose of payroll: accuracy, compliance and trust at scale, even if that means changing vendor, design or timeline.
Seeking outsider perspectives. Gaining an unbiased, specialist perspective on the project can make a huge difference when it comes to ensuring success.
Early Warning Signs Of Failure
We asked Will to offer some insight on what organisations should look out for when it comes to preventing failure and he explained that common early warning signs of payroll project failure show up in planning, behaviour and delivery long before going live. He told us that spotting them early gives you the chance to pause, reset and protect both people and outcomes.
Strategic And Planning Red Flags
When asked what some red flags are in the planning of a payroll project, Will gave us his top three:
Vague objectives, unclear scope or no agreed definition of success for the new payroll solution.
Rushing to select software before fully understanding requirements, award interpretation and integration needs.
Sponsors who are absent, lukewarm or unable to make timely decisions for the projects.
Governance And Project Delivery Issues
Will then went on to explain a few common issues organisations have when it comes to keeping the project on track:
Repeatedly missed milestones, constantly slipping timelines and “TBA” recovery plans.
Budget burn that is ahead of plan with little visible progress or value delivered.
Poor communication between vendor, HR, payroll, IT and finance, with conflicting messages and no single version of the truth.
Design, Data And Testing Problems
A lot of businesses struggle with the finer details of a payroll project and Will told us why he thought this:
Little or no time allocated for detailed configuration of pay rules, awards and local practices.
Data migration treated as an afterthought, with incomplete cleansing and limited reconciliation.
Testing compressed or skipped, or only “happy path” testing done without edge cases and parallel runs.
People And Change Warning Signs
Will strongly believes that people are the most important part of a business and he shared with us where he thinks some organisations lack in supporting their people during projects:
End users and the payroll team are not involved in design decisions and feel the system is being done “to” them.
Training is minimal, late, or generic, with users lacking confidence before going live.
Team morale is low, with visible fatigue, frustration and declining trust in the project’s direction.
Operational And Compliance Red Flags
The top priority in payroll is compliance, and it can be a struggle to keep on top of that, so we asked Will what the most common compliance red flags are in a payroll project:
Increasing reliance on manual workarounds, spreadsheets or duplicate data entry across systems.
Early test or pilot runs show inconsistent calculations, prolonged processing times or unexplained variances.
Growing non-compliance risks, such as poor documentation, weak controls or resistance to normal approval workflows.
A Gentle Challenge To The Industry
Will believes that the payroll community has the experience and judgement to know when a project needs a reset; the real test is whether there is enough confidence and psychological safety to act on that insight. He explained that having leaders willing to pause, re-evaluate and reassess the status quo, moves struggling payroll projects from expensive drift to disciplined delivery and long-term success.
Conclusion
Overall, Will shared his thoughts on how easily a project can fail without proper checks and evaluations. He is confident that the payroll community is more than capable of being aware of the success of their projects and when it might be time to take a step back and reassess. However, he explained that sometimes everyone needs an outside perspective and reaching out to independent payroll consultancies is the most efficient way of gaining that outside perspective to ensure the project stays on track.
Will founded this company to provide organisations with a cost effective, highly specialised team to help when help is needed. Get in touch with us to see if we can keep your payroll project on track.
Why You Should Contact Us
The Leppington Group Limited (TLG) is a UK headquartered company specialising in payroll advisory, audit and consulting services.
Originally founded in 2011, TLG has established itself as a reputable, independent and trusted partner for organisations seeking expert guidance for any aspect of payroll requirements.
TLG's core services include payroll audit & health checks, issue navigation, procurement, vendor selection, implementation guidance, project mediation, payroll administration, and cyber & privacy services.
TLG's commitment to excellence, and a customer-centric approach, has elevated the organisation as a valuable resource for businesses seeking to optimise their payroll processes without the ‘Big Four’ price tag.
TLG exists to make payroll simpler, businesses better and results clearer.