Most business owners tend to hire individuals to work manually on administrative tasks instead of using a system or outsourcing it to a professional team to handle it. This is especially true for startups or small businesses, where there’s typically limited resources and a smaller staff to maintain.

However when the business grows, so will staffing concerns. A manual system can be tedious, complicated, and have negative impact on overall operations efficiency and productivity. Philippine companies have identified the following five major pain points related to matters involving timekeeping, staff attendance, scheduling and payroll: manual processes, inaccurate data, scale, visibility/reporting, and cost issues.


A payroll management system is the use of any or a combination of software, hardware, streamlined processes, and payroll services that work seamlessly to help companies make payroll processing and other payroll-related functions (such as timekeeping) faster and more accurate. 

In that regard, getting a payroll management system is much more than just signing up for cloud software or say using a biometrics device. It is implementing an overall system and process, designed specifically for the organization's needs.

Signs That Your Company Should Invest in A Payroll Management System

In general, organizations must already have a payroll process in place. The question is when these existing processes (manual or aided with existing software) need to be upgraded or streamlined into a more integrated system. The following signs will help you know that it is time to invest in a payroll management system.

Your business is growing

A manual system for handling administrative tasks is an unsustainable model for startups that are seeing signs of growth and progress. Having this process automated will save you so much time, energy, and resources while ensuring that payslips are generated on the dot on a consistent basis.

Your current systems are incompatible

A payroll management system is a fully integrated system that can handle various data points and perform accurate computations in a fraction of the time it takes to do it manually. For instance, you may have procured a biometric device to make manual encoding a thing of the past, but your current software cannot integrate with the device directly. It may be time to consider a more flexible system for your organization.

You have too many backlogs

If you are spending too much time fixing payroll issues instead of doing your primary role, then you’re not maximising your full capacity and selling yourself —and your company—short. Don't let administrative task stop you from looking at the big picture.

Relying on a manual system or outdated process increases the risk of mistakes, that can cost a lot of time, legal fees, and resources to correct. Using the right payroll management system will ensure that you’re on top of compliance requirements on a consistent basis.


You get too many employee complaints about salary mistakes

Salary concerns are a touchy subject, and employees are understandably sensitive to any mistakes committed in computing their paycheck. Invest in a reliable system to fix these issues, and it can lead to loyal and happy workers who will work hard for you for years to come.

Your current payroll process relies on too much paper

It’s time-consuming and wasteful to continue to use a system that needs too much paper. Cloud computing options allow for 24/7 access to vital information, where reports can be generated in an instant and data updated as soon as new information comes in.

Pros and Cons of a Payroll Management System


  • Efficient employee information management
  • Convenient and easy report generation
  • Security Management
  • Accurate salary computation that arrive on time
  • Reduce HR administrative tasks
  • Access to up-to-date compliance regulations

What to think about

While deploying a payroll management system might require time and resources, in general having a payroll management system in place gives far more benefits than the work involved in setting it up and choosing for the right one. That said, the benefits are dependent on the successful implementation and transition to a new process.  The following are things to consider when you think it is time for you to explore a payroll management system.

  • Up-front and maintenance costs
  • employee training requirements
  • time required for installation, setup and configuration.

A reliable payroll management system is vital to running a successful business. It handles the repetitive, tedious, and time-consuming tasks so that you and your management team can have more time, energy, and resources to focus on activities that will grow your business. There might be upfront and maintenance costs to deal with, but the benefits of automating your company’s payroll system far outweigh these costs.

If you're interested and would like to know more about when you should invest in a payroll management system for your business, we'd love to help you. Click the button below or send us a message at

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