Human resource information systems are utilized to make hiring managers’ and recruiters’ jobs easier. Having an HRIS allows you to streamline processes that, otherwise, would take up hours of your workday. A key benefit of using an HRIS is that you can typically integrate the software with your payroll system. Doing this is vital because it helps to ensure data accuracy in addition to saving
What Is Integration?
Integration happens when the HRIS is able to share data and communicate with another software tool. The most common integrations are productivity tracking, learning management, and, of course, payroll.
Having this open communication between the software platforms can make the transfer of data seamless. Instead of having to open two different software systems and manually input the information, the HRIS can automatically transfer the necessary data to payroll. All you would have to do is double-check that the information is correct.
Why Should You Integrate Payroll and HRIS?
Having an HRIS is already extremely beneficial to the business, but why should you consider integrating your payroll into your HRIS?
Payroll can be a thankless task. No one says anything when payroll is correct, but as soon as there’s an error, HR will hear all the complaints. Integrating your payroll and HRIS system can decrease errors as the data comes directly from the HRIS. If all the information is already correct in the HRIS, then there should be little to no errors.
Having your systems instantly communicate with one another can reduce the need for manual data entry. Going between two different systems to check for the correct information and input data from one system to another takes up so much time. Integrating the two systems can allow you to process payroll quicker, giving you more hours to focus on other important tasks.
An HRIS is a great way to store all your employee data, so why not add your payroll data as well? Having all this information integrated together can make finding reports and paystubs easier than having two separate systems.
It’s much easier to secure one, integrated system than it would be for two separate systems. When you have all the data in one place, you’re able to keep an eye on payroll and ensure that your company is adhering to regulations and that you aren’t making any mistakes.
How Do You Integrate Payroll Into Your HRIS?
There are a couple of different ways that companies can go about integrating these two systems. It all depends on your company’s needs, the level of expertise you have in HRIS and payroll integration, and what fits into your budget.
Buying a Bundled HRIS and Payroll System
This is a single software that includes HRIS and Payroll integration, as well as other HR features such as time and attendance tracking and benefits administration. Having these two systems already integrated when you buy them makes the learning process easier. Instead of having to train on two separate systems, you’ll only have to train employees and yourself on one system. Since it’s a bundled system, you’ll also pay less than if you were to buy two separate systems.
With the benefits of this bundled system, there also come some cons. These cons are that the bundled system may be limited in the amount of customization as well as scalability. As your company begins to grow, it’s important that your systems are able to keep up. A bundled service may be too small and not have all the customization options you’ll want to fulfill your company’s needs.
Systems With Built-In Integrations
Unlike the bundled system, this option doesn’t already have the functionality of the payroll and HRIS system set up. Instead, these systems just have the ability for you to integrate other systems and have them communicate without building a custom code. This is beneficial for individuals who may not have coding expertise as it’s easier to set up. This form of integration is also ideal for all sizes of businesses since the system is designed to be scalable.
Some cons of these built-in integration systems is that there is a limited range of products to choose from. Not all systems out there will be compatible with pre-built integration systems, so you’ll be limited to which systems you can use. Additionally, there are some customization limits since these systems are designed with specific features. You want to be sure to do strenuous research so your HRIS system isn’t limiting your business.
Build Your Own Integration
This avenue requires a lot of technical expertise as you’ll be required to create a bespoke solution that tailors to your company’s needs. When creating your own integration, you’re able to have a level of customization that you may not get with the other integration systems. You’ll be able to change your system to work with your company, which includes changing the needs based on how big or small your business is.
We previously said that this requires a lot of technical expertise, which may not be available to every business. You might have to hire an expert to make this for you, and the costs can add up. For a bigger business, this might not be an issue. However, for a smaller business, every cost is essential and maybe this isn’t where you want to put all your money.
How To Find Your Best Integration Option
We already touched on some of the pros and cons of each type of system, but it’s important for you to weigh your options and figure out what’s going to work best for your company’s needs. Here are some things to consider.
Your company’s budget is one of the most important factors when it comes to implementing new systems. If your company is still starting out so your budget isn’t large, then bundled solutions may work best for you. On the other hand, if you have the money to spend and you want a great integration system, hiring someone to build you an integration could be beneficial.
A business will continue to grow and change over the years. As the size of your business fluctuates, you want to be sure your systems are able to keep up. If you’re a small business and you don’t plan on expanding beyond a certain threshold, then bundled and pre-built integrations could work for you. However, if your company is constantly expanding or is pretty big right now, it would be worth the money and time to invest in custom integration.
You’ll need to create a plan and see what your company needs when it comes to these software systems. If you’re able to meet your goals and successfully use the bundled or pre-built integrations, then go for it! For companies with more specific needs that need constant customization that isn’t offered with the other two options, building your own integration might be the best option.
Weighing Your Options
You’ll want to take all these different factors into account when you’re looking for a way to integrate your systems. You have to figure out what your company really needs at this moment. Having a list of prioritized goals (from greatest priority to least) can help you figure out what integration option will work for you.