In-house vs. Outsourced Payroll Processing: Separating Fact from Fiction

Before the advent of integrated human capital management (HCM) solutions, companies of all sizes chose to handle their payroll processing in-house for several reasons, including:

  • Control over timing, processes and costs
  • Ability to customize systems and reporting
  • Security of data
  • Integration between the company’s HR, payroll and financial systems

Outsourcing was viewed as clunky, inflexible and, most of all, costly.

Today, many of the historic arguments against outsourcing are no longer valid. By linking payroll, HR, talent, benefits and time & labor management, an integrated HCM solution can deliver all the perceived benefits of in-house processing with significant added advantages — including superior economies of scale, improved visibility, real-time processing, world-class security and protection against compliance risk.

Though the case for outsourcing is stronger than ever, some companies still cling to the outdated belief that in-house payroll processing remains the preferred approach. Isn’t it time to dispel the myths so you can make an informed decision about which approach suits the unique needs of your mid-sized organization?