Integrating HR and Payroll –Key Considerations and benefits for companies

Traditionally HR professionals have spend most ofpayroll and benefits are automatically terminated
 their time on administrative activities, but theat the same time. This means that you are no
pressure is now on for them to focus more onlonger susceptible to cashflow leakage as a result
transformational work and so deliver more to theof this commonly made error.
business. HR departments are addressing thisPayroll Software like Pocket payroll software
expectation both through structural changes thatfrom Sage can help you in better integration.
enable them to standardize policies andThere are many benefits of having integrated HR
procedures and through use of technology.capabilities with the payroll software or service,
An important trend in payroll solutions isincluding:
integration with HR applications. For progressive- No duplicate data entry – Changes made to
organizations HR, Payroll and Benefit functionsthe common HR and payroll database need to be
have tremendous overlap and sharing the dataentered only once. This eliminates errors and the
ensures that all systems are in sync and using theneed for duplicate entry of employee, pay rate,
most recent and accurate data.benefits and deduction information
Some key questions to ask when considering- Less paperwork — With payroll and HR data
integrating your HR and Payroll systems could be:stored in the same database you can reduce
• Do I believe that the flow of Managementunnecessary paperwork. For example, if HR
Information within my business can be improved?enters a new benefit for an employee, the payroll
• Do I know whether management reportsdeduction amount can be automatically established
can be produce on demand, accurately on anyas part of the benefit plan. There is no need to
day?submit another paper document to the payroll
• Does our current system save us money,department.
enhance our employee satisfaction and contribute- Integrated Reporting — Consolidated
to improved customer satisfaction?reporting is valuable to management, but is
• Are we utilising the human capital in the HRvirtually impossible without an integrated database
department as effectively as possible? Does ourand reporting tools. For example, management
HR and Payroll reside on different platforms?needs a report outlining each employee's "total
Although HR & Payroll are dependent uponcompensation package." This report must contain
each other, they're completely different businessemployee information, benefits data from HR and
processes. That's why,even though they ought tocompensation data including regular, overtime,
reside on the same platform, they often don't.bonus, commissions from payroll. You can only
Integrating benefits and payroll on a single,create this type of consolidated reporting with an
enterprise-level platform, if done properly, is fast,integrated solution.
accurate, and it doesn't require 24/7 supervision.Tips for an effective integration of payroll and HR
The utilising the latest manager and employeesystems:
self-service technology you can now deliver the- Prepare to re-organise as part of the project.
platform's data via the Internet: your employees- Set realistic timetables - rushing will limit the
don't have to fill out paperwork, or trouble yourvalue of the benefits realization.
HR staff on routine administrative matters.- Set a benefits realisation plan for the project
Everything they need is available via any desktopand monitor it during the course of the project,
browser.not just at the end.
The volume of paperwork generated during the- Tie in resources from your supplier.
administration of traditional payroll systems and- Ensure your policy and strategy requirements
your human resource management function isare met by the functionality of the product.
phenomenal - both for the employer and theThe best performing companies all have HR
employee. Automating the Payroll process withdepartments that have the mandate to work
the HR function will result in greatly reduced paperstrategically to fulfill the overall objectives of the
administration – at all employee levels - and willorganization. For your company to maintain
virtually eliminate all the input errors. Additionalcompetitive edge in today's market, your
integration benefits include the automatic updatecorporate HR department must also be granted
of employee records and entitlements. Forthis opportunity.
example when an individual is terminated, their