3 Myths Surrounding HRMS Payroll Management
Are you considering HRMS payroll management? There’s a lot of information to digest on this topic, along with ‘facts’ that have evolved over time. HRMS payroll management can be a tricky topic, read on to ensure that you don’t get tripped up by these common misconceptions about managing payroll in your HRMS:
Myth Number 1: Our HRMS Will Be Perfect for Payroll Management Because Everything Belongs in One Place!
For many companies and many situations, this will be the case - putting your payroll in the same place as the bulk of employee data creates one source of truth. However, this does not cancel out the need to do your due diligence in defining HRMS requirements and your expected benefits of managing payroll from inside your HRMS.
I recently spoke with a company that was considering a move from a traditional HRMS to one of the newer cloud providers. Their HRMS provided payroll management along with a variety of other functions such as expenses, training data, etc. The cloud vendor was still building up its global payroll functionality so this change would have required additional contracts with standalone payroll systems. Needless to say, the company decided to keep their current HRMS product landscape.
Myth Number 2: Outsourcing Payroll Is Always More Cost Effective
Many companies have seen the benefit of outsourcing the payroll aspect of their HRMS; dedicated experts are savvy in the latest tax legislation and offshore processing can often save money due to lower labor costs. As long as you enable security correctly into your HRMS, there is no longer a need for a team of in-house payroll experts to run your HRMS payroll, right?
Recommended Reading: HRMS Software Guide - Find HRMS Software Incorporating Payroll Management
How many times have we seen this scenario play out, and then watch as employee satisfaction plunges as service levels are not the same as before. A nameless contact on an international line can drive employees to search for a local contact, thus negating any cost savings. When your local HR staff has to troubleshoot issues and handle employee complaints, you’re left paying twice for the same work, in effect.
Myth Number 3: An HRMS Payroll Management System Will Never Be as Good as a Dedicated 'Payroll Only' System
There are many good niche payroll products on the market, but there are many HRMS with robust payroll functionality too. While the payroll providers may have more bells and whistles, it comes down to reviewing your requirements to determine if an HRMS with payroll management is a good fit for your needs or whether you need a fully specialized payroll system. Either is possible, but it depends strongly on your HRMS requirements.
Featured white papers
Four key principles of HRMS payroll management
A comprehensive guide to help you manage payroll effectively with HRMSDownload
How to choose the right payroll software for your business
Choose the right solution for your business with this extensive guide
Three difficulties of managing payroll internally
A well-designed HRMS payroll module removes a lot of the difficulty...
Five of the best HRMS with fully integrated payroll
Top HRMS with integrated payroll solutions to kick off your selection shortlist.