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.
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.
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:
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.
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.
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.
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.
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.
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.
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
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.