Human resource management and payroll are critically connected yet remain different disciplines. Organizations need solutions that combine the best HR functionality and processes with expert payroll management. An integrated HR management system allows both HR and payroll teams to access all of the same information by using the same database. Though there are several benefits associated with integrating HR and payroll systems, here we present a few of them.
Eliminates Double Data Entry
The process of information exchange between HR and payroll often involves various spreadsheets. The data collected by HR teams regarding the employees is often much of the same information required by the payroll department. Therefore, there is a lot of unneeded, excess paperwork.
If payroll is connected to the HRM system, the data can be easily shared between the systems, without the need for double data entry. Since HR and payroll systems share the same database containing workforce information, when something is entered into the system by the HR team, payroll automatically updates. Automatic updating is a key benefit of this integration; it completely eliminates the overall paperwork used within the organization. The integrated system reduces the amount of work for employees, as well as the margin of error.
Offers Comprehensive Reports
Business data increases day-by-day, it would be difficult to pool relevant data together to take actionable insights when a different payroll system is being used. Having all of the data available within a single solution, the reports can use that information and verify it against other data, all to compile analytics that can be used for enhancements.
Businesses need combined reports regarding the employees and their compensation packages. These reports should contain more than just the employees’ names and their corresponding payroll data. These types of consolidated reports can be generated easily with the help of the HR payroll system integration.
Empowers the Workforce
With an integrated HR management system that has a self-service feature, employees can view their payroll information whenever required. The online system enables employees to check for accuracy and retrieve historical payroll data, all on-the-go. Enabling employees to access their own payroll data can save HR teams’ time, while additionally empowering employees.
Minimizes Compliance Risks
When an HR system is used to generate payroll, it will automatically help with managing overtime, attendance records, and taxes. The integrated system automatically sends notifications when any aspect of payroll is in trouble because of being non-compliant, and it also pulls data required for reports. This helps save time and possibly save money on penalties that would have been levied for non-compliance.
An integrated platform promotes data security; HR and payroll systems contain the most sensitive information, from compensation data to social security numbers. By integrating these two systems into a highly secure HR management platform, businesses can significantly reduce the chance of data breaches.