Payroll is an essential part of running any business. However, it’s often a thankless task. If everything is done perfectly, it often goes completely unnoticed, but if something is done wrong, there are immediate (and loud) complaints.
Outsourcing your payroll is always an option, but is it the right one for your company? There are pros and cons to any action, but with something as important as your payroll, it’s important to take the time to consider all of your options.
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The Pros of Outsourcing
Processing your own payroll can be costly. It can take your HR employees’ time away from other important tasks. Training employees to handle all of the processes involved in payroll can be a hefty investment in both time and money.
Outsourcing your payroll means that your own employees don’t have to worry about processing payroll in addition to managing their own jobs. A payroll company has experts in payroll who can handle everything much more quickly and inexpensively than you might be able to in-house.
In addition, a payroll company is better equipped to handle security around payroll and other sensitive data. They also would be more up-to-date on current laws, taxes, and other government regulations surrounding payroll. Outsourcing to a payroll expert can, therefore, ensure that your company is compliant with all regulations and guidelines.
The Cons of Outsourcing
Letting another company handle your payroll sounds like the easiest option, but it does mean that your company is no longer in control of some sensitive employee information. In addition, while payroll companies may have better security than you may have on your own internally, but they are also a greater target for hackers looking to steal sensitive information.
A HRIS can be a good compromise that not only keeps your payroll in-house but also eases the burden on your employees. Implementing a HRIS can be costly at the very beginning, but the system can be used for far more than just payroll and can be a very worthwhile investment that would help your company in the long run.
With a HRIS, all payroll and employee information can be kept in one place. It can also be easily accessed by employees, both on the HR end and the user end. Staff members can view upcoming benefits and pay as well as enter and manage their own time sheets and personal information.
Because a HRIS is used for a wide variety of tasks within your HR department, not just for payroll, payroll itself doesn’t take a lot of extra time and money. The HRIS makes the running of the HR department smoother and more efficient by automating many tasks and allowing HR professionals to focus on the bigger picture and on tasks that require a personal touch.
In addition, your HR staff would already use the HRIS for other tasks daily. When it comes time for payroll, this means that mistakes due to lack of information or training can be minimized. All of the information is within one central system, reducing compatibility errors.
Are you looking for a HRIS to handle your payroll? Let us help you find the software that will best fit your company’s needs. Visit our vendor match page to get started.