Payroll. HR. Should you integrate them?

Jan7

Posted in HR

‘If it ain’t broke, don’t fix it’ can be a tempting argument. Yes, your payroll and HR data may be accurate and up to date. Yes, your people may feel entirely at home with separate systems they know, understand and which ensure they get paid every month.

But if you haven’t considered integrating your payroll and HR yet, you may find the benefits outweigh the familiarity of your existing system.

7 reasons to integrate

Eliminate duplicated effort – Separate systems require much of the same information to be entered into each. An integrated system requires changes to be entered (and stored) only once. Almost inevitably, you will save time and resource.

Reduce errors – Any process that involves human keying can result in errors. Halve the amount of keying required and you halve the potential for error.

Streamline processes – An integrated system means information about an employee is immediately available from a single source. New employees, new benefits, promotions, retirements and more can all be actioned in a single step, without the need for ‘payroll to inform HR’ or vice versa.

Easier reporting – Integrated systems make reporting and management easier for HR professionals.

Reduced training requirements; easier contingencies – If you run dual HR and payroll systems, how many of your people can process both? A single integrated system reduces training requirements and makes it easier to provide trained cover in the event of sickness and leave.

Security and access can be more effectively controlled in a single system.

Employees welcome more of their information being readily available in one place.

Separate?

Legacy – Larger organisations may already have a global commitment to existing systems. Although the benefits of integration remain, the practicalities, cost and contractual obligation may prevent it.

Need – Where the number of employees is small and the HR and payroll functions are already effectively merged, a business may not need the functionality of a fully integrated system. But there are alternatives…

Tailored integration

Not every company has an HR need. And certainly not every company has the same HR need. Tailoring integrated packages allows companies – especially small businesses – to pick and choose the elements they want.

The result could be a system without all the HR self-service elements a larger organisation might require, but which does include absence management as a ‘plug-in’.

This more selective approach allows every company to achieve its own optimum level of integration, while keeping costs low.

Find the right level of integrated HR and payroll for your business by talking to your provider, or calling Just Payroll Services on +44 (0) 1252 463 299.