| > | | | | point I am certain you are saying "Hold on. We |
| Cost savings ideas for HRIS, HRMS and HR | | | | don't want to do payroll in house." As you can |
| software purchases. | | | | imagine, I have heard this before. To address this |
| Yes, yes, I know this is a crazy concept during a | | | | issue, we signed up the client with a service that |
| time when HR departments are likely being asked | | | | allowed them to bring their payroll in house but |
| to cut their budgets instead of increasing them, | | | | they were also able to outsource only their tax |
| but stay with me. I might be able to increase | | | | filing. I call this an outsourcing hybrid. You get the |
| your HR and payroll functionality and save your | | | | cost advantages of bringing the system in house |
| company money all at the same time. | | | | with the outsourcing advantages of having |
| The big national payroll companies have historically | | | | someone else handle the tax filing. |
| not offered the flexibility and capabilities that the | | | | Another concern may be about the large up front |
| software companies or other services have | | | | cost of purchasing a HR and payroll software |
| offered. The big national payroll companies also | | | | system as opposed to a hosted or subscription |
| tend to be far more expensive than many of the | | | | model. This is easily addressed as well. There are |
| other players in the market. | | | | a number of leasing companies that will offer the |
| Many of the HR and payroll software companies | | | | option of leasing business software systems. |
| on the market have done very well because they | | | | Basically, you spread the cost over three or five |
| offer a superior HR and payroll alternative to the | | | | years. Then, at the end of that time frame you |
| national payroll products at a lower cost with | | | | own it and going forward you only pay an annual |
| greater flexibility and capabilities. If you are using | | | | support fee, which will still be far less than the |
| one of these services, I encourage you to take a | | | | cost of an outsourcing service. Often times the |
| look at what other products offer to see if you | | | | lease amount is still less than your fees associated |
| can save money on your HR and payroll | | | | with a national payroll provider. |
| processing cost. Read below for a real life | | | | If your company is currently outsourcing your HR |
| example of savings. | | | | and payroll processes, you may want to look at |
| A real life example | | | | the option of bringing the processes internal to |
| In 2008, with my prior HR and payroll software | | | | save precious budget funds. |
| reseller business, we saved a 1,200 employee | | | | What if you still want to outsource your payroll |
| manufacturing company over $120,000 for their | | | | and HR processes rather than bring them internal? |
| payroll and HR process costs over a three year | | | | Can you still save money? Absolutely; you will find |
| period. Over a five year span, this company will | | | | if you look at hosted or subscription service HR |
| save more than $225,000 for their HR and Payroll | | | | and payroll systems, that it is highly likely you will |
| processing costs. At the same time, we were | | | | be able to find a service which is less expensive |
| able to add employee self service, tighter | | | | and will still provide the added functionality the |
| interfacing with existing time and GL systems and | | | | national services are unable or unwilling to offer. |
| correct processing problems they had in the past. | | | | What if your company has seen drastic |
| Do I have your attention? | | | | reductions in work force? |
| How did we do it? | | | | You may very well find that the cost to support |
| The manufacturing company example offered | | | | and maintain a custom system created for a |
| above was using one of the national payroll | | | | much larger organization that has reduced in size, |
| processing companies for payroll. They were using | | | | may be more cost effectively maintained by an |
| Sage Abra for HR, which did not integrate very | | | | out of the box system or service. The important |
| well with their payroll product. They also had a | | | | thing I have tried to point out with this post is |
| time collection system and a GL package which | | | | that you have options, lot's of them. Take a look |
| did not speak with the existing payroll product. | | | | at our products page and you will quickly see a list |
| We brought their payroll back in house, using Abra | | | | of 14 alternatives to the national payroll services. |
| payroll, and custom created interfaces to both | | | | You may find significant cost savings with any of |
| the GL and time collection packages. Okay, at this | | | | these packages. |