Should HR and payroll solutions be integrated? Four things to consider

A growing number of firms, such as NorthgateArinso, offer both HR and payroll outsourcing solutions to their clients. There is a growing trend among businesses, whether or not they outsource their payroll and people management options, to integrate the two services. Considering the synergy that flows between them, it makes a great deal of sense.

Below are outlined four ways in which synchronising the human resource and payroll departments can help the company run more effectively and maintain positive relations between employees and management.

Avoids communication breakdowns

The payroll team depend on accurate information from the human resources department to ensure salaries are paid correctly and on time. If a failure in this communication pathway leads to someone being underpaid, it can cause friction and undermine anything the HR staff may have done to cement good relations between employees and management. Integrating the two areas ensures the same data is totally up-to-date and accessible to everyone, minimising errors.

Reduces administration costs

Much of the data held by HR and payroll departments is duplicated. Integrating the two systems cuts down on the amount of data inputting and retrieval that needs to be done. Having a central database in which both departments rely on the same information also helps to highlight discrepancies and errors, while streamlining the workflow.

Makes it easier for staff to check personal records

An integrated system with one set of records for both salary and HR processes makes it easy for staff and management to update or check on things like holiday entitlement, benefits, expenses claims, training days and so on. Information is kept accurate, and nothing is forgotten.

Ensures greater security

Integration ensures that neither HR or payroll can access or change information held by the other party, without their knowledge. While integrating HR and payroll solutions may not be the answer for every company, it is the obvious solution for many.