How to Write a Winning Business Case for Managed Payroll (Free Template Included)

• Current setup or provider not meeting expectations
• Spending too much time fixing errors instead of focusing on strategic HR
• Contract ending and exploring better options 

Whatever your reason, a well-prepared business case will help you structure your argument in a detailed, strategic way, making it easier to secure buy-on from decision makers. 

What are some other common reasons to look for a new payroll provider? 

• Compliance challenges with UK legislation or GDPR.
• High costs or unclear pricing.
• Outdated systems lacking HR/finance integration.
• Frequent errors impacting employee trust.
• Growth requiring scalable or global payroll.
• Poor service and slow support.
• Data security concerns.
• No self-service or mobile access for employees.
• Drive toward digital transformation. 

That’s where a business case comes in. This practical guide explains what a business case is, why it’s essential and how to structure one. Plus, you’ll get a free SD Worx Business Case Template to make the whole process easier. 

A business case is a structured document that: 

• Defines the problem and proposed solution.
• Outlines costs, benefits, and risks.
• Provides evidence for decision-making.
• Helps secure stakeholder approval for significant changes. 

It’s necessary when there is a substantial change required to address a business need. For example, if you’re switching from an in-house payroll model to an outsourced model, then you will need to propose the justifications for the expense, resources and time needed for the change.

Remind those of the key benefits of outsourcing your payroll which includes:

• Increased operational resiliency
• Cost effective
• Compliance Assurance 
• Reduced total cost of ownership and increased efficiency
• Improved data security
• Scalability
• More accurate and efficient payroll 

• Payroll Manager or HR Director.
• Supported by Finance for cost analysis.
• IT for integration considerations. 

• CFO – Focus on cost and risk.
• CEO – Strategic alignment.
• HR Leadership – Employee impact.
• IT Team – System integration.
• Payroll Team – Operational insights. 

Your business case should include: 

1. Executive Summary – Brief overview of why change is needed, including challenges, and a summary of how it will solve business challenges.
2. Current State Analysis – Problems, costs, inefficiencies, compliance risks.
3. Proposed Solution – Benefits of managed payroll.
4. Cost-Benefit Analysis – Financial and non-financial gains.
5. Risk Assessment – Mitigation strategies.
6. Implementation Plan – Timeline, resources, integration.
7. Measurement & KPIs – How success will be tracked. 

• Use quantifiable data (e.g., cost per payslip, error rates).
• Align with business goals (growth, compliance, efficiency).
• Prepare for objections around, cost, control and employee impact.
• Keep language clear and persuasive. 

When presenting your case: 

• Tailor your message to each stakeholder’s priorities.
• Use visuals (charts, cost comparisons).
• Highlight the cost of doing nothing.
• Offer phased implementation to reduce risk.