Dresser & Associates

Should You Have Your HR & Payroll In-House or Hosted?

paymentIt can be difficult to make a decision between having your HR and Payroll in-house or hosted, and even harder to find resources to aid you in making your choice. We searched the web for non-biased information and came up with some straightforward conclusions:

  • Many companies overlook the hidden or extra costs associated with Payroll processing. In order to determine your true cost of ownership, you need to consider not only the initial installation costs, but also the system maintenance and payroll process labor and non-labor costs, and also the annual, or otherwise, upgrade costs.
  • In addition, a major cost of payroll is generally overlooked– Time & Attendance, or collecting, approving, and preparing employee hours for payroll. Make sure you evaluate, and include these costs when choosing a Payroll system.
  • For both HR and Payroll, it is important to realistically consider the useful life of the system before estimating the ROI. It’s very easy to be optimistic and assume that your system will last five years or more, however, it may end up becoming obsolete after two.

Chances are too, that you will most likely feel completely inundated with the amount of potential software choices out there, but do yourself a favor, save yourself some stress, and make your decision simpler by determining your needs vs. wants, the associated true and hidden costs, and the ROI and true useful life of a system. By considering the above, you should be able to narrow down your options and feel confident in your purchase.

For more information, download the In House or Outsource: Exploring Your Payrollwhitepaper.

What’s been your experience with in-house or out-sourced HR and Payroll? Please add your comments below!

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Dresser & Associates

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