Edu BlogMarch 25, 2022

Integrate your hr and payroll solutions

Why you should integrate your hr and payroll solutions 

Human resources and payroll may be different functions within the business, but they share critical connections within the employee lifecycle. Consequently, when it comes to managing your workforce, integration isn’t just a nice to have, it’s a business imperative.

If your business has not yet implemented an integrated hr and payroll solution, then you need to consider going this route sooner rather than later.

A study done by PWC reveals that the average organisation uses three to four separate systems to perform their HR and payroll functions. This is despite the fact that much of the data used by HR and payroll solutions is often the same.

A single source of truth

The risk of running HR and payroll separately means the same data has to be captured multiple times. If the data is out of sync, the cost to the business can be significant. Unreliable information results in inaccurate and late salary payments and even accidental overpayments, all of which increase costs and negatively impact employee productivity and morale.

An integrated HR and payroll solution enables companies to manage all their employee information – and pay these employees – from the same database. Sensitive data such as personal contact details, employee payroll numbers and tax information can be stored in one, secure system, enabling onboarding activities and payroll processes to be performed on a single, integrated platform.

Not only does this eliminate the need to duplicate data or capture it more than once, but a single set of data for HR and payroll means the information is less likely to be hacked.

Enhanced efficiency

The larger an organisation’s workforce, the longer it takes to process the payroll. And if a payroll team is short-staffed because they are ill or on leave, the likelihood of delays and errors increases significantly. With an integrated HR and payroll solution, however, payroll processes can be automated, saving time and enhancing efficiency.

Reliable reporting

Organisational information grows daily and if disparate HR and payroll solutions are being used it becomes increasingly difficult to analyse the data and compile accurate reports. But having all the information readily available on an integrated HR and payroll solution facilitates the reporting process. With comprehensive and reliable information at your fingertips, you are able to make better, informed decisions about your employees which are beneficial to the organisation.

Improved compliance

An integrated HR and payroll solution makes it easier for organisations to ensure they are complying with the latest employment and payroll legislation. Data is automatically pulled for reporting requirements and any instances where a possibility of non-compliance is detected are immediately flagged. This not only helps to save valuable time, but also reduces the risk of incurring harsh financial penalties for non-compliance.

The benefits of an integrated HR and payroll solution are clear. By sharing information and processes between the two functions, teams are able to collaborate more closely, streamline tasks and develop a workforce of engaged, inspired and rewarded employees.


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