“Employee Payroll Processing” has always been the top priority and why shouldn’t it be? After all, employees are pillars of a company. However, payroll processing is one of the boring and time-consuming tasks that leads to certain errors, too. Eventually, these errors affect employees’ morale and most importantly result in certain penalties. Hence, the right payroll processing method is of the utmost importance.
While most organizations have already switched to payroll software, there are still many who are stuck with the same question- “Is outsourcing payroll a good option?”
Honestly, a “Yes” or “No” can’t justify this question. Keeping that in mind, this article goes through the 3 main reasons why an organization should consider payroll software over outsourcing payroll processing.
So, keep reading!
Why Outsourcing Payroll is a Wrong Decision?
Most companies usually choose outsourcing methods to enjoy an easy payroll processing. But an important factor often overlooked is the “total payment”. Yes, the payment made to an outsourcing agency literally exceeds the cost of purchasing any payroll software. Let’s make it more clear to you!
For instance- a company purchases payroll software india & pay a one-time cost of rs 6000. On the other hand, another company pays rs 6000 every month to an outsourcing agency. Which company is woking smartly? Yes, we heard you!
Again, there are also many outsourcing agencies offering services at a limited cost. However, a low cost means low performance that will negatively affect the company as a whole.
Hence, payroll software is the clear winner when it comes to the cost factor.
- Poor Data Management
No matter new or old, payroll data is very important for every HR. Hence, these details should be conveniently available when required.
Now if a company outsources payrolls, they will have to wait for a few hours (or sometimes days) to acquire the required data. In addition to this, nobody really appreciates the hassle of giving a call or sending an email to a representative.
On the other hand, one can easily obtain any data through payroll software when they need it. Most importantly, HR managers can easily export details from payroll software which means they can also make decisions as quickly as possible.
- Security Factor
Every organization, no matter big or small, considers risk as the biggest threat. When choosing an outsourcing agency, there is a high possibility of data theft. Payroll data is considered as one of the most sensitive data of a company and hence, one should really think twice (or even more) before sharing it with a third party.
Having considered payroll software, one really doesn’t have to worry about any kind of data theft. The reason why most companies have switched to payroll software is because it eliminates the risk of data leaks.
The Winner is Payroll Software!!!
Hence, consider all the 3 points mentioned above while making a decision about payroll. Also, go for an HR software that not only takes care of the payroll requirements but also has an excellent attendance management software.