Payroll Packages

Choosing a payroll package is like choosing any other outside package. You go through the process of determining your needs and then you search through the available packages for the best fit given your resources. Chances are you won't find a perfect fit so you will either have to have custom mods or make changes in Payroll procedures.

A far as outsourcing is concerned, a lot depends upon the flexibility of your Payroll Department. If they can get by on a vanilla Payroll package, outsourcing can work well. If they need special processing, outsourcing can be very expensive.

Some outsourcing organizations use off the shelf software from big name vendors. If you do go that route, ask who does the coding for the software. If it is an external package, check out the package to get more information about capabilities.

Regarding choosing a payroll package, a through list (with weightage) has to be prepared on the requirement of the company. Classifications may be

1. Regulatory,

2. Reporting,

3. Interfacing,

4. Workflow (Generic and Custom),

5. Migration and reverse migration,

6. Support,

7. Cost (One time and recurring),

8. Availability of Trained personnel (to use the package),

9. Vendor's commitment to the product and the vendors financial performance.

Each vendor can then be evaluated after assigning marks under each head.

It is better to outsource to a HR BPO if the country's regulations are complex and the Management time is used up to supervise this activity.