Significant number of organisations today manage their employees’ working hours and attendance through one solution, while time off requests are managed through another. Additionally, payroll is processed via a separate system. Despite the fact that payroll and human resources departments both require the same set of data and information, each department operates with its own set of systems and solutions.
Surveys indicate that the average organisation now employs more than 16 distinct HR and payroll software. This figure has been increasing year-on-year, reflecting the wide range of responsibilities that fall under the purview of HR or the payroll department. The outcome: low to nil level of data transparency and increase in payroll errors. This results in doubling the amount of data maintenance work that could be carried out in a centralised manner. Resources are being wasted on redundant tasks and are frustrated due to slow and complex processes.
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The ramifications of multiple systems on HR functions
Having multiple HR systems can lead to considerable difficulties and additional complexity for the wider human resource functions, such as data duplication, data compliance, and reporting issues. This is especially true when HR system is isolated, and even when the point-solutions claim to be ‘integrated’ with your existing technology.
The adoption of more than one HR system – even ones that state to automate manual processes – usually require additional technical skills internally to manage and maintain the tech stack to maximise the value of the system. If you’re a company with multiple HR systems, here are the three biggest challenges you might face.
1. Multiple systems risk data integrity
When different data elements are stored in different point solutions, there is a risk that your data will become corrupted or out of sync. This can result in companies making decisions at the highest levels based on incorrect information.
2. Multiple software can lead to zero transparency and error in reporting
Some systems are optimised for data entry, while others are built for report generation, and the two will never go hand in hand and retrieve data as needed when they operate in silos.
This can lead to situations when it is necessary to generate a comprehensive report or analysis, it becomes challenging to call up a single integrated, brief view. This can make it more challenging to analyse employee turnover rates, monitor performance between reviews, or make more informed decisions regarding hiring and training.
3. Multiple software result in multiple updates
When you have a single entry point with another software, it can be hard to know when to update the other software.
The bottom line is that there’s a lot of variation in when updates happen. They could happen every week, every month, or they could happen every hour or every ten minutes. As a result, there are multiple software with varying levels of accuracy, depending on when they were last updated. You may think the information is up-to-date, but it could be outdated.
The impact of integrated HR and payroll solution on employee engagement
As the global labor market continues to tighten and talent shortages persist, employers have begun to recognise the detrimental effects of dissatisfied employees on the company’s bottom lines. According to a survey of 1,600 employees, well-being is a top concern for employees, and 83% say it’s the employer’s responsibility to facilitate well-being in the workplace. What motivates people to go the extra mile? It all starts with a great leader who has the right tools to make the employee experience better.
Organisations should not only implement employee recognition initiatives but also consider operational processes and software that influence employee engagement. The lack of access to the appropriate tools and technology aggravates the feelings of frustration and inertia that many employees already experience. This makes it more difficult to complete tasks, thus detracting from an employee’s sense of progress and success.
An integrated cloud-based HR payroll solution facilitates employee flexibility and streamlining of workflows. That way, your team can keep track of their own work, leave, training and career development information, and easily access documents, forms, or pay details as and when needed.
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Improve employee retention with integrated HR & payroll solutions
An effectively integrated payroll system has a significant impact on employee retention by promoting a healthy work culture and building trust within the organisation. Payroll processing is one of the most critical aspects to make sure your employees are happy and engaged, which is key to retaining top talent.
The timely and error-free payment for employees is an indication of the organisation’s dedication to their well-being. An integrated payroll solution facilitates a smooth payroll process, which eliminates the inconvenience and stress associated with payroll errors or delays. This instills a sense of safety and confidence in employees, as they know they can rely on the company to meet their financial obligations correctly and on time.
A HR and payroll integration helps to create a more open and transparent relationship between the company and its staff. Employees can easily access their paychecks, taxes, and any other payroll documents through the self-serve portals. This accessibility provides employees with visibility into their payroll information and allows them to address any queries or discrepancies in a timely manner.
An integrated payroll system enhances employee financial security, job satisfaction, and retention by ensuring timely and accurate processing, thereby reducing the financial burden on employees.
HR professionals taking advantage of integrated payroll solution
An integrated payroll solution also allows HR teams to spend more time on strategic efforts and employee development, rather than dealing with manual payroll processes and payroll challenges. With this shift in focus, HR professionals can devote more time and resources to developing comprehensive retention plans, including career development initiatives, employee recognition programs, and workplace wellness programs.
By investing resources in these areas, companies can create a culture that encourages employee growth, employee satisfaction, and employee retention.
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The pros of integrating payroll and HR solutions for global expansion
Global workforce management faces significant challenges due to unique in-country requirements around payroll and varying labor and statutory regulations. Organisations that use a global payroll solution have the advantage of being able to manage payroll across multiple borders. However, what about global human resources?
Without a global HR system that can manage your workforce, your business operations can quickly become unmanageable and at risk of non-compliance within each country. In order to streamline global operations and mitigate in-country tax compliance challenges, the initial step is to evaluate your global payroll system.
Integration with a global payroll solution that consolidates data from all countries and integrates with a global HR solution enables global workforce management to be streamlined, employee data to be consolidated into a single system of record. Integration also provides increased compliance and data protection capabilities.
Create a unified approach with Zalaris for total workforce management
HR and payroll work so closely together that it doesn’t make sense to manage them separately. Doing so just adds more work and more room for mistakes. According to a recent Insight Avenue survey, 92% of companies say they struggle to gain strategic insights to address retention issues, among other issues, by dividing their time between siloed systems, which only makes it more difficult to gain valuable insights into your workforce.
Zalaris’ PeopleHub solution integrates payroll and human resources processes to facilitate all hire-to-retire processes. The comprehensive Human Capital Management (HCM) solution has been designed to incorporate multiple modules into a single system, which is often more cost-efficient and future-proof.
Contact us today to see how Zalaris can support you with your global HR & payroll ambitions.