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Comparing Payroll Outsourcing to In-House Systems: Pros and Cons

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Accurate and correct salaries are very important for the employees and for you as a business owner.

Choosing between payroll outsourcing and using payroll software to create an accurate payroll can be difficult.

If you belong to a small or medium-sized business, it is very clear that using a payroll software is more beneficial than outsourcing the payroll. I have listed the benefits of using payroll software over outsourcing.

1. Instant access to your data

If you need to see your salary history or have questions about your salary data, you will need to call a representative of the salary service, and it may take 2-3 days before you get a response. By using a payroll software, you can get instant access to your data from anywhere and from any device. One cannot ask for more convenience than this.

2. Cost effective

If you are a small or medium-sized business with less than 500-1000 employees, payroll outsourcing may not be right for you, as outsourcing costs much more than using payroll software. By taking control of the salaries yourself and not outsourcing them, you can save large sums.

It also increases productivity and efficiency if you choose high-quality payroll software. Conversely, outsourcing payroll costs a lot of money, even if it saves you time.

3. Privacy

When you outsource the payroll, it means that the payroll data of the employees is on another person's machine. This can be a problem for most employers. On the other hand, SaaS-based payroll programs like IceHrm give employers the ability to enable or disable access to employee data for software providers.

4. Complete HRIS solution

Choose a payroll program that has integrated functions such as time registration, attendance and leave management. It allows you to manage your workforce effectively within your budget.

However, it may happen that you do most of the work anyway by supplying data about e.g. paid time off days or payroll information manually to the payroll provider. If you're already doing this work, you don't need a lot of manpower to manage your payroll with payroll software.

In weighing the options between outsourcing payroll and using in-house software like IceHrm, it's clear that the latter offers immediate access, cost-effectiveness, privacy assurance, and comprehensive HRIS integration. For small to medium-sized businesses, IceHrm provides a reliable solution to streamline payroll management efficiently.

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