4 Reasons Why Your Business Must Integrate Payroll Management System with HR
Payroll and HR management systems are inherently related, yet will always be two different disciplines. Therefore, your organisation requires a solution that can combine excellent HR functionality with the payroll management system.
An integrated HR system allows resource and database sharing for both teams in HR and bookkeeping departments. There are numerous advantages of integrating these two, including:
Elimination of Double Data Entry
The exchange of information between payroll and HR will often involve multiple spreadsheets. Employee data collected by the HR department is often similar to that demanded by the payroll team. For this reason, integrating the two systems can significantly reduce the excess paperwork involved.
Many issues related to double data entry can be quickly resolved by integrating the payroll management system with HR. That's because the two systems share the same employee database, and updates happen automatically when information is entered in either system. Generally, integrating the two systems minimises the amount of work to be done and the error margin.
Comprehensive Reporting
For any organisation, data increases daily. Thus, it'll be highly challenging to organise data if you want to achieve actionable insights with a separate payroll system. However, using a single solution for all that data changes the game completely. Your reports can rely on that information, run it against separate data and compile substantial analytics.
Your business may also require combined reporting for every staff and their compensation schemes. Ideally, such reports must contain more than employees' data and their relative payroll information. You can quickly generate these consolidated reports through an integrated HR-payroll system.
Employee Empowerment
An integrated HR-payroll management system with a self-service feature proffers payroll data access to employees whenever they need it. They can log in to the online-based system to verify information accuracy, as well as retrieve their payroll history report with just a click of a button. By granting payroll access to employees, your HR team can save more time, while at the same time contributing to employee empowerment.
Reduces Compliance and Security Risks
When you generate payroll using an HR system, it helps manage overtime, attendance and tax-related issues. This system will automatically notify you when any payroll aspect is running into non-compliance. Besides, it pulls the necessary data for reporting, which in turn saves more time and money due to non-compliance penalties.
Finally, integrating your payroll management system with HR can also enhance data security. Typically, these two systems carry highly sensitive information, including social security numbers, compensation plans and employee identities, etc. Integrating them into a single, highly secure management system helps organisations to minimise potential data breaches significantly.
For more information on payroll management and bookkeeping, reach out to a local accountant.