Why SMEs should opt for In-House HR and Payroll Process
Making the choice for Small and Medium Enterprises for either to process your HR and Payroll functions in house or outsource it to a provider, can be a rather difficult decision. After all it all has to fall in place, salaries have to be paid in a timely fashion, not to mention leave management, over time, and all other nuts and bolts of the HR Department. Not to forget the costs associated with doing the same.
Here are some of the reasons you may want to consider, why it is a good idea for SME’s to opt for going for In-House HR and Payroll Process Management rather than outsourcing it:
Cost is the one of the most important factor when evaluating the benefits of In-house HR and Payroll process. With the Cloud based (SaaS Model) HR and Payroll Software, processing In-House HR and Payroll is cheaper then outsourcing it to the vendor. There is no need to hire a new employee or a new team, to manage your day to day HR and Payroll processes. These HR and Payroll Solutions, don’t need any in house IT support plus they are user-friendly , can even be managed by shared teams, just putting it a few hours a month to streamline the complete process and with minimal software related training.
Better Control of the Process
Outsourcing processes means you will only have a certain amount of control. Since you would not own the solution. One of the biggest advantage of processing it In-House is the complete level of control you’ll have over the entire process. Moreover, your in-house team can effectively manage elements which may be unique to your own particular scenario or certain exceptions, which may not be the norm. Whether it be the payment of new starters, leavers, final-settlements, pay-slip printing or any other element, in an accurate and timely manner.
More Accurate Reports
An outsourced provider is only as good with the information provided in hand. You will have to feed that information into their system wait for it to be processed, then reporting would be made available. But if the employer consistently doesn’t supply up to date payroll information to provider, there are chances of inconsistent reporting. You get one of the biggest advantages or real time reporting if you own the process and the data both, without a layer of an outsourced service provider. You can generate any report on demand, to name a few are, new-joiner, leavers, bonuses, overtime, salary advances, increment/reductions in salary, all reports at the click literally, plus you can also demand more reports and create more reports on your own.
In-house payroll software gives you ultimate flexibility of how you choose to implement your solution. While keeping your processes intact and processing on time and on your schedule without also having to work around your payroll providers schedule. Any changes with regard to compliance or other improvements, can be implemented in a timely and cost efficient manner.
A provider may charge you for additional requirements such as changes such as adding overtime or managing the rosters. Also he may charge you additional for out of office hour support (work), even if the support was critical like in order to complete the payroll cycle, so employees are paid on time. Payroll providers can also increase their costs at their own discretion, to account for inflation and other related things.
So the best option for SME’s is to opt for Cloud Based HR and Payroll Management Software, define the entire lifecycle of the process and implement it, take necessary training and support for day to day processes.
HR Chronicle being the leader in this area, has helped a lot of SME’s in their process management and helped the achieve success. We are sure you will want to know more. HR Chronicle is a leading Cloud Based HR and Payroll Software, we have served our customers since 2006 that’s when the very first version of HR Chronicle came out, HR Chronicle is available in 2 flavors, Cloud Based and On Premise. To know more give us a shout, we will happy to discuss more.