Project Management

According to Kavanagh, Thite, & Johnson (2012), a CostBenefit

Analysis (CBA) is a

comparison of the projected costs and benefits associated with a human resource information

system (HRIS) investment. The purpose of the CBA is to improve organizational performance

and there are particular guidelines to follow to effectively conduct a CBA (Kavanagh, 2012). The

CBA teams should start with an open mind and be focused on functionality. It is very important

to examine the benefits first before the cost is discussed to develop the most feasible estimate.

The CBA team should also have a working knowledge of the organization’s policies, procedures,

and how the company makes to decision to accurately determine the best decision. Payroll can be

a demanding and timeconsuming

task; therefore, many businesses have chosen to transfer these

services to an external payroll service to avoid penalties and save the company time and cost. A

CBA should be conducted to determine rather or not a company should replace its internal

payroll system with a payroll outsourcing service. The direct and indirect revenue enhancements

include the following: outsourcing payroll services, better managed payroll and human resource

functions, compensates for the lack of skilled workers, access new technology to automate

payroll and HR functions, and increased levels of service. The direct and indirect cost reductions

include the following: reduced cost for payroll management by 15 percent to 20 percent

depending on organizational efficiency level, reduced administrative burden, higher employee

satisfaction, and reduced turnover rate (AmCheck Payroll Outsourcing Services, 2015).

When integrating a new payroll system, there are many risks to consider and the proper

planning can reduce the likelihood of those risks. One risk associated with integrating a new

payroll system is ensuring that the hardware and software of the new system fit perfectly with the

already existing system....