Last Updated on February 22, 2023 by user
Benefits of Integrating Payroll and HR management
The world is driven by data and financial information as your payroll is at the heart of it all. Dealing with payroll is far more than just a problem for the finance department. Employee salaries, unpaid leave, or overtime hours are also an issue for the Human Resources department. Payroll integration with HRMS could help your business save time, increase productivity and improve employee happiness.
What is payroll management in HR?
Payroll management is what the name suggests – the process of dealing with your payroll. Payroll processing is very complex and is not just based on fixed salaries. Often HR has to consider additions and deductions of work expenses, unpaid leave, or overtime hours. Managing all this information can be time-consuming and even lead to errors.
That’s why most organizations have resorted to using payroll management systems. A payroll management system is computer software that manages everything related to payslips.
If a company uses a modular payroll management system, they’re likely to be spending additional time manually pulling data through multiple spreadsheets and reconciling data which increases the risk of human error. All this has to be done by a deadline too – people expect to be paid on time and therefore the HR or finance manager has to factor in this additional time – time that could be used elsewhere.
To solve this problem, many companies outsource their payroll processing or use vendor/third-party software.
The result? Well, payroll calculations have many errors, slow data updates, and inefficient handling of payroll by vendors. Ultimately the company’s HR works extra time to ensure that benefits, attendance, timesheets, and payroll are in sync.
That is why the smarter option is to integrate payroll and HR management.
Benefits of payroll integration with HRMS
Payroll management systems streamline dealing with employee salaries. However, as the above shows, they can cause other issues for the HR department.
Integrating payroll with HRMS can respond to the challenges standalone software can have. An integrated and automated system provides the following benefits:
- Faster reporting and payroll admin
Payroll manual processing, double-checking with attendance and biometric records, requests, and benefit inquiries add about 70% to the time requirement of the HR staff. Plus, the possibility of human errors, by any of the human resource team members or employee leads to unsatisfied employees.
Syncing your Payroll data with attendance, timesheets, and benefits will reduce man-hours spend on payroll admin and the possibility of any error made by the human resource team.
Also, the Payroll Reconciliation Reports can easily help in correcting errors if any.
These obvious savings will reduce the man-hours required in human resource management.
- Enhanced HR payroll compliance
Compliance is becoming more complex every year. The legislation is changing each year. The human resource department and payroll management system need to be up-to-date and compliant with the legislation to reduce any possibility of human error. The system has to be completely error-free and transparent so that employees have the opportunity to access their payroll information, attendance, timesheets, company policy, and benefits.
- Improved team productivity
Through a cloud-based human resource platform, all employees have access to work records, request approvals, and overtime calculations. This increases the productivity and morale of all the employees as they know their work records are up-to-date and they don’t have to worry about discrepancies in pay.
You are freeing a lot of employee time from mundane tasks. Employees and your HR team don’t have to manually input every single detail into the system. Instead, you can have them focus on more important tasks that require their full attention. The HR department is a highly trained unit with expertise in many areas such as recruiting, employee satisfaction, retention, training, and education. These areas are crucial to the ongoing health of any company. However, HR frequently spends up to 70% of their working day answering simple employee questions and solving problems related to benefits, instead of concentrating their efforts on more key strategic issues.
Providing employees with easy access to accurate reports and information such as attendance records, timesheets, policies, appraisals, and other information makes for a much more efficient management process of HR and related activities. For any company to maintain a competitive edge in today’s market, the corporate HR department must also be granted this opportunity of automation.
- Automated system notifications
You’ll also enjoy automated system notifications with integrated payroll HRMS. You don’t need to message employees and seek out their time-off days in a rush. All the data collection can have automated notifications set up. Employees will be reminded to enter information and errors or other problems can trigger automated warnings to alert your HR personnel about any problems.
- Tighter management of expenses and overtime
Effective, timely information about payroll admin, working hours, and overtime is important to your company’s bottom line. Both the HR managers and finance managers are responsible for payroll admin and controlling overtime costs. The finance department has to work closely with HR staff to achieve possible savings and reduce preventable leakage. HR can fame customizable overtime policy on Bayzat and control the overtime payments if they exceed the permissible limits. Bayzat can help HR to identify and contain unnecessary cost leakages before they burn a major hole in the company’s profits.
- Data Accuracy
Having various software solutions working can be a problem when it comes to data accuracy. You might have to input the information multiple dies and things can get lost in translation. But with an integrated system, the information and data flow smoothly from one department to the other. This reduces the issues of incorrect information and ensures salaries are paid on time and accurately.
Features to look for in an integrated HR payroll
There are many different options to choose from when it comes to integrated HR payroll systems. To enjoy the above benefits, you need to make sure to focus on the essential features. An integrated system should have:
- Cloud-based access
- Employee self-service
- Dashboards that enable data analysis
- Data corrections
- Compliance features for the local market
As with any technology your business adopts, integrated HR payroll has to be the right one for your business. It’s important to identify your HR payroll needs and then match those with available software. For this reason, trials and demos can be a great way to know if a software solution works for your business.
With Bayzat the whole process can be done automatically. All the integration of HR and payroll admin – attendance, timesheets, benefits, and policies can be done on one platform that is fast, correct, and doesn’t require supervision, and save HR from the trouble of routine admin troubles. Additionally, it recommends the correction if the data is not matching.
If you want to enjoy the benefits of great integrated payroll and HR management system, then contact us today. Let’s see how we can help your business enjoy the benefits of a great HRMS!