The Advantages of HR/Payroll Collaboration
Operations professionals understand the importance of streamlining business functions in order to improve efficiencies. However, many organizations use different systems to manage HR and payroll functions. This approach can make it difficult to access data and may result in unnecessary redundancies.
On the other hand, integrating your company’s HR and payroll systems can provide a wide range of benefits, including the following.
1. Enhanced reporting
Integrated systems allow your teams to easily view a single source of data and reports. This ability helps HR and payroll remain on the same page and reduces the need to contact each other for necessary information.
For example, during your company’s performance review period, integrated systems allow HR personnel to pull a single report that includes details about employees’ earnings as well as manager information and performance ratings.
2. Processing efficiencies
Integrating HR and payroll data into a single interface allows your company to automate more processes, which can result in a more streamlined employee workflow. For example, a shared system means changes to employee data, such as salary information, are automatically shared with relevant departments, eliminating the need for additional interdepartmental follow-up.
3. Fewer errors
When separate databases are used, employees across different departments must simultaneously enter data, which can increase the likelihood of human error. An integrated system can lead to fewer errors by reducing the need for employees to manually enter data multiple times.
4. Enhanced data security
An integrated approach to HR and payroll data means highly sensitive employee and company information is better protected from data breaches. Instead of sending information across departments by email or other communication methods, authorized personnel can log into a single secure system to access confidential data, such as Social Security numbers and salary information.
5. Easier data access for employees
Integrating HR and payroll systems allows employees to log in to quickly access data related to their paychecks, benefits, available vacation and sick time, tax deductions, personal information, etc. This ability can help your employees feel more connected and reduce their need to contact HR and payroll personnel.
6. Enhanced compliance
Most integrated systems automate certain tax requirements, such as audit trails, tracked consent and access requests. This feature can help reduce errors and potential fines because it helps ensure tax information is correctly reported.
7. Better employee experience
Not only can an integrated system streamline the efforts of your HR and payroll teams but it can also provide a better experience to your employees. Self-service features allow individuals to view details about their benefits and pay, update their personal information and access important documents, such as pay stubs and W-2s.
Could you use some help identifying an integrated HR and payroll system that makes sense for your business? Creative Planning Business Services can help. We offer a wide range of business advisory services to help employers reduce risk, maintain compliance and maximize both profitability and efficiencies. To learn more, schedule a call with a member of our team.
