Payroll integration: The benefits of integrating payroll software and HR
An HRIS software stores employee data. Time off requests and working hours can be managed in one system, while attendance and work hours are tracked in another. Payroll process is done in a separate program. Many businesses and organizations have to face this reality. While HR and payroll departments require the same data and information, each department uses its tools and systems.
The results: Low to no data transparency. Double the work required for data maintenance. This could be done centrally. Unneeded work was a waste of resources. Unhappy employees are a result of slow and complex processes.
Businesses should integrate their payroll and HR software to improve efficiency and save resources for other tasks. This blog post will discuss the benefits of integrated payroll and HR systems. Also, we will look into global payroll integration.
What’s payroll integration?
Payroll integration integrates your payroll software with other tools you use to manage your workforce. In other words, you are synchronizing payroll with other software to allow data exchanges among those systems. This will enable you to access all data. This could be your payroll software that tracks employee attendance and working hours and your accounting and finance software. It can also be your central HR system, where all information and documents related to employment are stored.
What are some of the benefits of integrating payroll and HR software?
A combined HR and payroll solution can provide many benefits for businesses. These include improved efficiency and compliance and enhanced employee experience and reporting. Here are seven benefits of integrated HR and payroll systems.
⦁ No more duplicate files, endless paper trails, or various passwords!
Two separate systems are required to maintain and manually transfer data from one to the other. This requires more documentation and often involves duplicate files. One for each system. It is worth the effort to integrate HR and payroll software. The number of passwords and logins required to access the software is also reduced.
⦁ Employee experience enhanced
Talent management and retention are top priorities. Employees should have the best experience possible throughout their employment. Many integrated HR and payroll solutions include employee self-service functions. Employees can access and update their data online without going through HR.
Your team can access all employment-related information if HR and payroll systems are connected. This includes payslips, contract details, and benefits. A single integrated solution is much easier than navigating different systems with different logins. Employees can update their personal information in one system instead of multiple, saving time and money.
⦁ Automating administrative tasks
Businesses can stop manually handling data and repetitive admin tasks by integrating their payroll and HR software. Integrating the systems is much easier than manually transferring data from the HR system into the payroll system.
Let’s look at employee attendance and time sheets. Your HR system will usually store information about attendance and time. The data sets are required for the monthly payroll run or in shorter intervals if you have a pay period that is either weekly, bi-weekly, or semi-monthly. It takes a lot of time to get the data from the HR system and then import it into the payroll software.
It is unnecessary to mention that your staff may be performing more valuable tasks this time. An integrated HR payroll system can improve efficiency and the use of resources.
⦁ Less room for error
Whole data sets can be mismatched by accidentally jumping between lines in Excel. Data entry manually is very vulnerable to errors. Incorrect data can cause serious business problems and lead to disastrous business decisions. Therefore, organizations should reduce manual data handling to a minimum.
Integrating the payroll and HR systems is one way to do this. The two systems can be connected to enable automatic data transfers and updates. This will reduce error frequency, particularly since new data needs only to be entered once. This is also true for updating existing data. Payroll errors that are less frequent lead to higher employee satisfaction, leading to lower turnover rates.
⦁ Transparency and better reporting
By connecting your HR and payroll systems, you can create a Single source of truth for all workforce-related data. Transparency and faster reporting are possible when all data is stored in one place. Reports can be produced and delivered much faster, as it is easier for your team than to search through multiple systems.
A central platform that integrates HR and payroll systems makes it easy to create reliable reports. The accuracy of your reporting will improve due to the harmonization of data structures across systems. This gives you a complete view of all information relating to your workforce. Cross-references can also be made between payroll and HR data. This makes it possible to create strategies for improvement.
⦁ Increased compliance
Compliance can be improved by having all payroll and HR data organized. Fewer errors in payroll reporting can mean a lower exposure to potential fines. Clear central data makes it easier for you to meet deadlines for tax and other reports required from the authorities. It is important to remember that HR and payroll are interconnected in many ways.
Let’s continue with the example we used earlier. Payroll requires you to track working hours and overtime. This information is needed for the calculation of employee pay. However, overtime and working hours are also subject to the law. HR must ensure that these limits are adhered to. Integrating your payroll and HR systems allows you to ensure compliance with both payroll and HR through one centralized system.
Compliance is another important aspect. Cloud-based integrated HR and payroll solutions offer the best data security standards.
⦁ You save time and money
With all the benefits mentioned above, integrating payroll and HR software can help a business save money and time. First, fewer resources are required for payroll and HR if the systems integrate, and manual tasks are automated. Automated processes are more efficient than manual ones, allowing more important tasks to be completed. A better compliance setup will result in lower compliance-related expenses.
What is global payroll integration?
International organizations must process payroll in different jurisdictions. The advantages of integrating payroll and HR systems for global pay are greater than single-country payroll. Consider this example: If there are 12 offices with separate HR and payroll systems in 12 countries, the financial benefits of integrating these systems increase twelvefold.
Businesses often outsource their payroll to local providers to reduce the compliance and processing burden on their internal staff. This increases complexity as data streams, systems, and processes need to be standardized or consolidated.
A global payroll solution such as Lano can solve this problem. It allows you to connect your payroll systems in one central platform, including those from your payroll providers.
Lano’s global compliance and payroll platform make managing payroll for your distributed workforce easier than ever. You can streamline your processes, automate data flows, and get consolidated payroll management data for all your global employees on one screen. The Lano API allows you to integrate your platform with your HRIS or ERP systems and your preferred workforce management tools.
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