Fully Integrated HR and Payroll Solutions

Cost savings and improvements for HR and payroll staff might be the most obvious advantages. Learn more here.

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Not that long ago, carbon paper became the latest technology capable of sharing information with multiple parties for the first time ever. Its invention served as a large time saver for office workers. Just as software is superior to carbon paper, HR payroll system integration can offer many benefits over separate HR and payroll systems.

Cost savings and improvements for HR and payroll staff might be the most obvious advantages. Nevertheless, the ripple effect can extend to all employees and the life of the organization as a whole.

Should You Select HR Software That Has Payroll Capabilities?

Until recently, outsourcing payroll was seen as the smart move for small- to medium-sized businesses. Outsourcing payroll helps to minimize errors, makes it easy to figure out deductions and withholdings, and makes compliance a snap. Doing payroll in-house didn’t have these advantages.

Now, however, HR software has gotten to a point where these payroll issues can be handled through an automated system. In many ways, payroll software is on par with outsourcing. If you are considering implementing HR software that has payroll capabilities, consider the following points.

Initial Costs of Switching

Implementing payroll software along with other HR software and making the switch from outsourcing payroll can be costly. The software itself will cost money, training people to use the system will cost money and time, and your business may need downtime to get the system up and running. These costs can add up but can be quickly made up when the cost of monthly fees for outsourcing is saved.

Reduced Administrative Tasks

Entering employee data can be very time consuming, especially if it’s entered multiple times. Avoiding redundancy eliminates excess work so your staff members can focus on the kinds of issues they were trained to handle. A reduction in administrative tasks enables HR professionals to perform more valuable work. It also gives them ample time for exploring new ways to engage and inspire employees, rather than merely documenting them.

Ongoing Labor Costs

After payroll software has been installed, the system automates many aspects of payroll – but a human still needs to run it and check for errors. If there are errors or complications, it may sap labor time. This expense is ongoing and may add up if the system does not turn out to be compatible with the workplace.

Connectivity to Other Systems

HR software with payroll only works well if there are other systems that are directly connected to it, such as time and attendance tracking functions, salary management functions, and the employee information database. If it is easy or automatic to transfer information back and forth between these systems or features, payroll becomes simpler. If information transfer isn’t easy, payroll will be much more difficult.

Seamless Communications

HR payroll system integration eliminates the need to communicate changes across HR and payroll. Updates made by HR such as promotions and terminations are made available to payroll electronically, thereby saving time in both departments. In addition, any issues that arise from a lag in communication will be eliminated.

Self-Service Functionality

Another consideration that may affect the prosperity of an in-house payroll system is whether or not the HR software has self-service functionality. If self-service functionality isn’t available, HR may suddenly be inundated with employee requests for information after switching to doing payroll in-house.

With integrated self-service functionality, employees can look up their own payroll information. This can act as further protection against errors while saving HR time and increasing employee satisfaction.

Control of Information

When payroll is processed in-house, all information stays in-house. This allows employers and managers to access and make changes to information as needed. This also makes it possible to perform analytics on the information in the payroll system, cross-referencing with other integrated systems for more robust reporting and better decision-making capabilities.

Whether payroll should be done in-house using software that is integrated with HR software or outsourced can vary depending on the company. Some companies may be better off with the greater control of information and the cost savings that in-house payroll can provide, while others may be better off letting professionals handle payroll.

Improved Access to Information for Employees

An employee portal that extracts data from one source is a welcome convenience for all members of the organization. Typically, many questions are handled on an individual basis by HR and payroll staff. However, with an employee portal, these questions are easily answered online.

In addition, requests for payroll records and benefits information can be fulfilled by employees with one click of their mouse.

Accuracy, Consistency, and Synergy

When information is shared rather than repeated, duplication errors become nonexistent. Once your data undergoes HRIS payroll integration, any updates need doing only once and are shared across the whole system. Since all eyes are looking in the same place for information, it’s more likely that any inaccuracies will be spotted.

Also, if a correction needs to be made, the change will be required in just one system. Companies are better protected when the information used for payroll, tax withholding, and benefits is free from discrepancies.

Improved Reporting

Comprehensive reporting is much easier to complete when the data doesn’t stem from multiple sources. A more complete database allows for richer, tailored reporting. In addition, it provides employees with the opportunity to better customize any information gathered for certain purposes, from reviewing the cost of benefits to improving employee retention.

An accurate, complete dataset can also assist you in attaining a workforce that meets the changing needs of your organization.

Finding the Right Integrated Payroll Service

Every organization is unique, so the right software solution will be different for every employer. Are you interested in pinpointing which integrated solution will work best for your organization, both now and into the future? Our 100% free service introduces you to vendors who will best meet your needs.

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