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Benefits of Integrating Payroll and HR Systems
1. Benefits of Integrating Payroll and HR Systems | Exela HR Solutions
Benefits of Integrating Payroll and HR Systems
As businesses continue to evolve rapidly, most organizations are expanding their footstep into the
international markets – a huge step that can bring unannounced HR management challenges. HRs
can miss out on other key aspects while juggling hiring new candidates and adhering to local
employment laws, taxes, and payroll practices. Failing to comply with certain rules and regulations
and hiring and retaining the best talent can give your HR teams a tough time. Moreover, there are
risks involved from the business perspective.
Performing international payroll processing is tricky and needs more attention, which can be a
massive bottleneck in your business expansion. Instead of going back and forth with the potential
challenges, HR teams should ideally focus on more priority tasks, such as managing the workforce
and getting the most out of what they have. Implementing a uniform HR management system can
help businesses streamline the entire global workforce with utmost efficiency while minimizing the
risks and costs associated with the expansion.
The vast majority of HR teams think they can solve the issues with proper coordination with the HR
and payroll systems. However, they often fail to outspread the existing systems and implement a
new integrated HR and payroll system as a part of the global expansion. Thus, traditional systems
are often scattered and no longer meet modern business requirements. One must consider
integrating the payroll and HR solution systems to avoid such barriers. Here’s how payroll and HR
integration can be beneficial for your business.
Benefits of integrating your payroll and HR system
The roles of payroll and HR professionals have tremendously changed over the years – they now
hold a position of business-critical elements. However, although both departments function
differently, they share the same goal – to support employees within the organization. To
accomplish this, organizations must consider driving both departments to a more cohesive and
integrated model.
2. Benefits of Integrating Payroll and HR Systems | Exela HR Solutions
A well-synchronized payroll and HR system forms a firm foundation for effectively managing the
workforce and helping the company meet its goals and be productive. Moreover, automating and
regulating administrative tasks can give HR professionals an edge to focus on value-adding tasks
such as strengthening internal relationships and employee engagement.
Here are the benefits of integrating your payroll and HR system:
No more duplicate files, endless paper trails, and numerous passwords
Organizations today deal with massive datasets. Managing two different systems and
manually transferring data from one system to another requires increased effort in the
documentation. This may lead to further setbacks concerning duplicate files, endless paper
trails, and different passwords for each system. A unified system helps keep all the records
in one place, giving no more duplicate datasets, no more having to deal with endless paper
trails, and neither the hold up to remember logins and passwords.
Enhanced employee experience
Providing employees with the best possible experience is a top priority for businesses these
days. Scattered data sets, files to log in data, limited access to employment documents, and
having to shuffle through large datasets from different systems can surely get on the nerves
of your employees. Integrated payroll processing and HR solution systems often come with
employee self-service functions, allowing them to access to their essential documents,
payroll data, and more.
Integrated systems are also a lot easier to use than having to navigate different systems
with different passwords. Moreover, employees can check their payslips, contact details,
benefits, or billable hours in one place.
Also Read: Withholding HR and payroll data from employees? Unnecessary!
Automation of administrative tasks
Manual data handling and tedious administrative tasks often lead to meaningless errors and
increased TATs. Automating these tasks by integrating payroll and HR systems can save you
a whole lot of time and energy to focus on other high-value activities. Besides, managing
data at both systems can get overwhelming, while it is easier just to integrate the systems
and enable automated data flows.
For instance, you have logged your daily efforts in the HR timesheets, but the payroll
professionals missed considering those while calculating the monthly salaries. The situation
can get your organizational reputation in trouble. Moreover, logging in and transferring
data every time to perform payroll isn’t an efficient practice, which can cause unnecessary
3. Benefits of Integrating Payroll and HR Systems | Exela HR Solutions
hold-ups. With integrated payroll and HR systems, you will no longer have to jumble
between the two systems and streamline your processes by automating them.
Less room for error
With thousands of employees and hundreds of teams working from geographically situated
locations, it becomes evident that there is room for error. In addition, if there are manual
tasks involved, the situation goes downhill. And there is not much anyone can do to avoid
the mistakes – skipping even one line can get you in trouble. However, automating can
make things better.
You will no longer have to manually enter the data or update the existing information,
which means less room for error. As there won’t be any loopholes in the payroll processing,
you can boost employee satisfaction and scale productivity rates.
More transparency and improved reporting
Integrating your payroll processing and HR solution systems means creating a Single Source
of Truth (SSOT) for all your employee data. Having your data stored in one place increases
transparency and enables faster and better reporting. In addition, since your teams can
extract data from one centralized source rather than spending hours filtering through
systems, reports can be compiled and delivered faster than ever.
With automated workflows and easy data access, a few clicks are all you need to generate
reliable reports. This makes it easier to analyze the entire data to develop strategies for
further improvement.
Improved compliance
An internationally growing business means more responsibilities and liabilities to adhere to
local compliance requirements. Failing to comply with certain rules and regulations can get
your business in trouble with further legal disputes. And as it is perilous to play with
reputational damage, organizations can’t miss on improving compliance.
Unfortunately, you can’t really do much if you are all caught up with hiring activities or have
manual tasks consuming all your time. Integrating payroll and HR systems gives a whole
new perspective to this issue – automating and having a centralized system allows you to
keep an eye on all the compliance requirements. In addition, having centralized data makes
it easier to meet tax deadlines, avoiding penalties. Moreover, you get an edge in securing all
your confidential data in one place with only authorized access.
Saves time and money
Considering all the benefits of integrating payroll and HR systems, it is safe to say it allows
businesses to save time and money. Any legal disputes, errors while entering the data, data
management conflicts, or endless paper trails can cost businesses a fortune. Having a
4. Benefits of Integrating Payroll and HR Systems | Exela HR Solutions
unified data set can help businesses save up on resources, time, and compliance-related
costs.
The bottom line
Disconnected systems often fail to meet global HR requirements and drive businesses into a
situation where there is no global visibility. Moreover, the resources needed to manage complex
data add to the total cost of your solution while impacting the ability to make timely and accurate
business decisions. Thus, having a centralized system can solve all issues related to payroll
processing or HR processes. Exela HR Solutions is the market leader in HR and payroll outsourcing
and can help you streamline your operations worldwide and make the bests decisions for better
workforce management. Speak with our experts at Exela HR Solutions now!
DISCLAIMER: The information on this site is for general information purposes only and is not
intended to serve as legal advice. Laws governing the subject matter may change quickly, and
Exela cannot guarantee that all the information on this site is current or correct. Should you have
specific legal questions about any of the information on this site, you should consult with a
licensed attorney in your area.
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