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4 Benefits of Managing Payroll In-House

Lauren DeBisschop
Jan 30, 2024
10 min

Understand how running payroll in-house boosts flexibility and control.

Table of Contents:

Handling payroll processes in-house is a smart strategy for many businesses. This blog explores four key benefits of in-house payroll processing and why it leads to greater flexibility, security, and financial control.

Outsourced vs. In-House Processes

Outsourcing involves hiring an external organization to perform specific tasks. Insourcing means relying on your internal team to handle business processes.

While outsourcing payroll might appear cost-effective, managing in-house offers significant benefits and can be equally as cost-conscious.

4 Benefits of Managing Payroll In-House

Insourcing provides complete control and eliminates many of the business risks associated with passing responsibilities to an outside organization. In addition, you can expect to:

1. Increase Flexibility and Control with In-House Payroll

In-house payroll offers flexibility and control, allowing your business to configure processes to suit your needs because you don’t have to conform to an outsourcer’s processing methods.

Your team maintains complete ownership of all information and control over the software. This ensures command over automation, compliance, and internal processes.

Consider this: Using an in-house, cloud-based payroll system can enhance this control, enabling payroll management from anywhere and better integration with other platforms, such as your ERP.

2. Enhance Data Security with Insourced Payroll

With insourced payroll, you have instant access to and control over your company’s data, including employee and business information. You also have control over the security measures in place to protect that data.

With outsourced payroll, it is often challenging to access data quickly and your control over security measures is limited. Since you must share employee data with a third-party provider, the risk of data breaches can increase.

3. Gain a Financial Advantage with In-House Payroll

In-house payroll solutions offer greater financial control by alerting you to when taxes are due, allowing you to initiate payments directly. This control over cash flow is a significant financial advantage over outsourced services, which often require pre-funding accounts.  

Consider this: Silicon Valley Bank’s (SVB) closure in 2023 affected some outsourced payroll providers. Those relying on SVB's services could not fund their customers’ payroll, resulting in employees not receiving their pay. This example illustrates the risks of outsourcing payroll - learn more about this bank failure here.

4. Improve Your Employee Experiences with Insourced Payroll

Your team knows your business best and can run payroll processes most effectively. In-house payroll enables your team to leverage this knowledge and implement systems that suit your company.

With Greenshades, your team gains access to a range of flexible processing features in your in-house system, including off-cycle check processing and multiple pay schedules.

inhouse vs. outsourced payroll processes

Explore more benefits of in-house versus outsourced payroll and understand how Greenshades provides an advantage. Download our in-house payroll guide for more information.

Captain Your Payroll Processes with In-House Payroll

Choosing the right payroll system is a crucial decision. In-house payroll allows you to tailor the system to your needs while maintaining full control over the process and data, supporting your business's growth and scalability.

Farmers Union Mutual Insurance In-House Payroll Success Story

Challenged by their limited on-premise payroll system, Farmers Union transitioned to Greenshades' cloud-based, in-house solution. The change streamlines their payroll processes, saving significant time and energy on many processes previously done manually.

Overall, the switch improves employee experience by allowing for more flexible work environments and granting team members direct access to their payroll information.

Farmers Union’s story highlights the advantages of utilizing an in-house payroll system, especially when it comes to flexibility, control, and adapting to changing business landscapes.

Read more here: Farmers Union Insurance | Greenshades Case Study

The Greenshades Difference

Greenshades is committed to providing reliable, user-friendly, and cost-effective in-house payroll solutions. Choosing Greenshades for your payroll management leads to increased efficiency, improved compliance management, and better overall financial health for your organization.

Contact us today to schedule a demo and learn more.

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