Comparing, evaluating & selecting payroll systems


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In order to develop a deeper understanding of the demanding requirements in the area of salary and payroll accounting, in this article we will provide you with comprehensive information on the criteria that should be used when selecting salary and payroll accounting programs. We emphasize that the topic of “payroll accounting” is far more complex than it may appear at first glance. In addition, the choice of a possible payroll system is not easy given the wide range on the market. Here, too, we have a few tips and recommendations for you.

Payroll-Systeme im Vergleich

Salaries - a sensitive topic with clear structures

Employee salary is not only a particularly important topic, but also a very sensitive one. In addition to very obvious evaluation criteria, such as the level of salaries or criticism in connection with the gender pay gap, organizational aspects of payroll accounting play an essential role – for both employers and employees. Proper payroll accounting must comply with legal requirements and at the same time meet generally accepted quality criteria.

For example, employees must be able to rely on their salaries and any bonuses or premiums always being paid on time and in the correct amount. Secondly, the employer must ensure that tax deductions, social security contributions and labor law obligations are taken into account. If an error does occur in one of the process steps, it should be transparent, comprehensible and correctable for all parties involved.

The above selection of criteria shows that there is a lot to consider when it comes to payroll accounting, both from a social, legal and organizational perspective. Let’s take a closer look at this below.

Payroll accounting - complex & time-consuming

The more employees a company has, the more complex the payroll processes become. Manual payroll steps are particularly prone to errors due to possible transposed figures or overlooked data. Furthermore, manual payroll accounting involves a considerable and recurring amount of time – although there are now very good software solutions on the market that can take over most of the payroll work. Business Process Outsourcing (BPO) in the area of payroll accounting Outsourcing also plays a not insignificant role in payroll accounting processes. Cost savings and time reduction are among the most frequently cited reasons when companies outsource all or part of their payroll accounting to external service providers or third-party providers. The special expertise of the relevant providers in terms of compliance is also a decisive argument for not carrying out payroll accounting in-house.

Payroll systems - a comparison is a must

The above-mentioned software solutions for payroll accounting – also known as payroll systems -have established themselves as a “must-have” simply due to increasing digitalization in companies. The question is often not “whether” a payroll system should be introduced, but “which” program is suitable and what it must be able to do.

The correct selection and evaluation of a payroll system can significantly increase your company's efficiency and ensure compliance at the same time.

As always, our philosophy is comparison. Only by comparing can you gain an overview of what is available on the market, where the respective advantages of the products lie and what best suits the respective requirements. These requirements for possible payroll systems are often very individual and depend heavily on the structures and size of the company. In general, a thorough investigation and analysis of payroll systems is essential before making a selection, as it can have a significant impact on the efficiency, cost effects and growth of your company.

Increased efficiency through automated processes

The automation of payroll processes brings significant efficiency gains for companies, allowing the time freed up to be used for business-critical tasks.

An in-depth analysis of the efficiency of automated payroll systems shows:

  • Payroll automation increases efficiency by reducing processing times, minimizing errors and improving compliance.
  • Moving from manual to automated processes significantly reduces administrative work and ensures accurate, reliable processes.

At a glance
Reasons why you should use a payroll system for payroll accounting in your company:

Quality features that you should consider when comparing payroll systems

Here are a few features that may not be immediately obvious, but should be considered when choosing a payroll system, especially for growing companies:

  • Scalability: when comparing payroll systems on the market, check whether the program of your choice can grow as the number of employees increases. You should still be able to work efficiently with the system as team structures change.
  • Usability: The ability to make individual adjustments significantly increases user-friendliness. A payroll system should be able to react to company-specific requirements.
  • Interfaces: When integrating a new system into existing company structures, it is important to check in advance whether it is compatible with existing systems, such as your time management or corresponding employer self-service software. This is the only way to ensure a smooth flow of data and prevent inconsistencies.
  • Multilingual presence: Internationally active companies with multilingual employees may need a payroll system that supports multiple languages, currencies and tax systems.
  • Updates: The digital world simply moves a little faster. Choose a payroll system that regularly releases both technical and content updates to support you in dealing with possible changes to the law. In addition, such updates correct system errors so that its performance is also optimized and you can work even more efficiently.
  • Signs of “social proof”: Check whether other companies have had positive experiences with the respective payroll system and whether they would recommend it to others. The opinions and recommendations of other companies provide valuable insights into the reliability, performance and user-friendliness of the system.


Find out in advance whether the system of your choice has customer support. Technical problems can occur with all system applications or you may use functions about which you have questions. To ensure a prompt solution, the provider must be available to you.

How can I find the right provider from the large selection?

HRNeeds can support you perfectly here. We know the most renowned HR software providers on the market and can make a recommendation based on your individual requirements. Our experience will save you time and put you through a much leaner selection process than if you were to search on your own.

Comparing offers based on your individual requirements – that’s a lot of work for a single company.

In order to make an informed decision, it is essential to obtain several quotes for payroll systems and then compare them carefully. This is exactly what we can do for you! We pay attention to all the criteria that are decisive for you, both in general and in your individual case.

Feel free to contact us directly or use our free software comparison – either way, we look forward to making exciting contact with you.

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