In-house vs Outsourced Payroll: Just Because You Could, Doesn't Mean You Should
Incidents in payroll processing may happen without warning - from big corporations to smaller startups, sometimes it only takes one missed input on the system to jeopardize all employees’ monthly salaries. Result? From delay in salary distribution or incorrect amount of payment transferred.
Perhaps we may think - at the end of the day, everyone still gets their payment, so it’s okay to face a little “hiccups” along the way? Let’s be more strategic in acknowledging the situation. There’s a saying that goes “Just because we could, does not mean we should” - perhaps we actually have what it takes to run the process on our own, but among our other strategic roles and tasks, you may face risk of incident in payroll processing. Administration error does not sound as fatal as internal fraud when it comes to finances - but in reality, it does impact your talents’ retention rate, because it raises trust issues.
Let’s see it this way; over these 2 years, after being forced to face the pandemic, employees have reprioritized. What was important for them in 2019, may no longer be relevant today. And as organizations start to transition to WFO again, employees can respond by resigning and looking for new opportunities instead; especially when there’s a trust issue that’s already occurred during the long, fatiguing WFH days. Reckless management of their payroll, which is very vital for them during the pandemic, can be the last nail in the coffin.
We all know that these days, one of the ways for HR departments to bring the most value is by focusing on retaining the best talent. And one of the things that your talents are looking for in a company is safety and security. Employees want to know that their employer places a value on being compliant with their payroll.
When an unwanted incident regarding payroll processing is your concern as the HR of the company, it’s time to sort things out with a partner, instead of carrying all the burden in-house. Manage your time the right ways, meaning the ways that you can bring the most value - move forward with more innovation and strategic decisions, as your payroll is managed professionally through an MHPRO partner.