Identify your needs When selecting a new payroll processing solution, the strategic objectives are usually reducing production costs, improving process efficiency and quality of the output, improving standards, raising skill and training levels, and drawing on wider experiences. However, when a selection team rethinks and redesigns the payroll process to optimize the outcome, the final decision of software package versus outsourcing solution is usually based on the company s specific needs. Complicating the process even further, there are as many different combinations of needs as there are companies that claim they can meet them. It s important to identify all of your needs, taking into consideration mandatory, desired and discretionary requirements and future considerations. The fit has to be right according to a company s culture, size, the way you re structured and any constraints you may be facing.
Company culture plays a large part in the selection of a payroll processing solution.
Some companies have an aversion to risk and place a heavy emphasis on dealing with well-established vendors that are consistently profitable and have a growing workforce. The company size and the way it s organized also can influence the selection process. Some software or outsource alternatives are ideally suited to a small, centralized payroll environment. Other systems target large, distributed payroll operations. In between, there is an array of industry specific and generic products.