Payroll management is an essential process when doing business in the Philippines. It functions at the core of every employees’ paychecks, including taxes and deductions, as well as financial compensations for every rendered service. Here’s a quick guide to help you in choosing the best payroll management system for your business.

What to Ask

  1. What are your business goals?

Start by checking your company-wide goals, determining which ones are priorities for you, and then work your way backwards to the features that will enable you to achieve your envisioned benefits.

  1. How flexible is the software?

Asking yourself what benefits you’ll get before making the purchase forces you think through some aspects of your business that you might have overlooked.

  1. How credible is the vendor?

Credibility of the vendor is also one of the things you should check. Make sure they are not a fly- by-night type. By performing due diligence, you eliminate the potential waste of time and money on a vendor and the software.

Factors to Consider

  1. Availability of support

Keep an eye out for the quality of customer support or after-sales service offered. High-quality support is essential in ensuring a successful relationship.

  1. Ease of implementation

The payroll software vendor should offer an easy way to transfer data from one system to another. It’s also important to keep in mind the amount of manpower typically required during a software implementation.

  1. Total acquisition cost

Be privy to hidden costs, as many payroll services appear to be cheaper than others, but actually contain a pile of additional costs for regularly occurring payroll activities. These hidden costs can significantly increase the cost of managed payroll.

payroll management system in the philippines


  1. Integration and compatibility

A great payroll management system should allow you to install and implement it without additional costs on hardware and software. You shouldn’t be forced to buy new devices that would only work for that particular solution, or upgrade all your computer’s operating systems just so you can use it.

  1. Access levels and security

An effective payroll management system should have the ability restrict access to certain users. Rules should dictate who can see, modify, and approve the report. It is important that any payroll solution you select is protected by a system like this.

  1. Scalability

The ability to accommodate your organization when you grow is one of the things you shouldn’t forget to look at.

Payroll Management Software Choices

  1. Payroll Hero
  2. Salarium
  3. Philpay
  4. Payroll Pie

Tips Before Choosing 

  1. Think about your budget

Any investment requires resources. The one that hurts the most to companies is investment using money. It is the most tangible resource. It also has the most significant effect because it is direct and felt immediately.

  1. Manage your expectations in terms of your timeline

You have got to make sure that you factor in the requisite time and effort to make this a success. You can’t expect the new system to magically work without your participation in the implementation. Most vendors cite the reasons for delays is the client’s little participation in the project implementation.

  1. Prepare yourself and your team for more work

During the implementation period, which can take as long as 3 months, you will have to expect longer hours or dropping some activities to be able to accommodate your (temporary) additional workload.

Incorporating technology into your payroll management has its own pros and cons. It’s important to weigh financial costs and employee management potentials to make your investment worth every peso.


Want even more information about choosing the best payroll management system for your company? Click on the button below to get a copy of our free ebook!

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