Understanding the Connection between Payroll and HR
Payroll and Human Resource departments utilise employee data to manage employee wages, benefits, leave, and holiday, but often the systems and teams are managed in a silo instead of being closely connected. With so many new data protection regulations, changes to payroll and auto enrolment, failure to comply can cost your company millions in fines and penalties, not to mention the damage to reputation. With so many advances in technology and integration, companies can save time and valuable in-house resources by closing the gap between payroll and HR.
When your payroll and HR systems cannot share employee data, there is an increased risk for non-compliance. The manual labour required to handle the redundant data entry for both systems wastes time and resources, while the errors that occur and the potential payroll issues cost lost time and wages. Integration gives you increased control over employee data and ensures compliance for both payroll and HR-related regulations. Using payroll and HR software that can integrate allows one team to enter data and reduce redundancies for other teams, ensures security of employee data and accurate payroll and withholdings. Employee self-service portals are also important to allow employees to make changes (address or bank account information) so your payroll and HR teams don’t have to spend time on administration or correcting mistakes.
Another huge benefit of connecting your payroll and HR teams is when it’s time for quarterly or annual reporting. No more manual spreadsheets – your teams can run reports and get updates. Leadership can make recommendations or changes based on accurate, real-time information. Your teams don’t have to spend time pulling old data and trying to create meaningful reports. When your payroll and HR teams and systems are connected, the whole company benefits. To learn more about our payroll and HR solutions, click here