Integrated HR payroll refers to the concept of synchronized data between payroll and the human resource information system (HRIS). It runs across a spectrum from light integration through file exchanges to deep integration through a web services interface. In some cases, especially with small to medium sized companies, the light integration is a perfectly workable solution. However, the trend is clearly towards deeper integrated HR payroll.
Payroll integration: Efficiency, accuracy, and centralization
There are 3 major reasons why payroll integration is not just a good idea, but a good business practice as well.
Reason #1: Efficiency
In an effort to save time, payroll integration just makes sense. Many companies have to deal with multiple applications to run several different processes. For example, a payroll administrator may have to enter payroll data several times into several different applications – a payroll processing application, an accounting application and perhaps again into the CRM. By creating an integrated system, various teams in an organization are able to work more closely together, save time and resources and focus on the joint goal of managing human capital effectively.
Reason #2: Accuracy
In payroll and HR, the occasional error is inevitable. Unifying your payroll services system with your human resources system serves as an excellent means of reducing the number of basic payroll errors, as this technique greatly reduces (or even eliminates) instances of double entry.
Reason #3: Centralization
In the modern world, every organization can rapidly face the challenge of a globally disperse workforce, with multiple offices and multiple local payroll requirements that include differing pay cycles, pay points and the need to deal with local pay bureaus. A single platform can centralize these processes as well as provide the opportunity to establish new processes, delegate tasks and report on productivity.