Top operational and strategic benefits of HRMS with payroll integration

If an enterprise manages human resource activities and employee salaries separately using two different and isolated systems, it will result in an ongoing operational drag. Just imagine what happens all the time at the end of each month: while the HR department indicates employees to be promoted, newly hired, and separation records in one place, the payroll department is managing a completely distinct system for salary processing. This arrangement compels the administrative staff to spend a long time physically copying data back and forth, cleaning up messy files, and fixing calculation errors to issue monthly salaries on time.

By having different departments, you will not only complicate things for yourself but also increase the likelihood of making problems for your organization in terms of mistakes, loss of crucial information, and violations of legal requirements without even knowing that it is happening.

To build an agile corporate environment, major organizations are moving away from isolated applications. Instead, they are centralizing their operations by investing in the best HRMS software platforms that feature native payroll software integration. Bringing employee lifecycle milestones and monthly financial payouts together under one cloud roof provides serious operational and strategic advantages.

Say Goodbye to the Pain of Manual Re-Entry of Information

With a decentralized structure, any modifications made to an individual's record cause a lengthy process of manual activities to follow. For example, whenever a colleague is promoted mid-month, changes his tax status, or modifies the bank details, you will update the information in his main profile. Nonetheless, since the systems do not have any connection, the information has to be manually re-entered into the calculation engine. Such processes waste a lot of time while creating errors in the process.

On the contrary, a single system makes such issues history by resolving them in the database itself. With both the employee's profiles as well as the financial engines sharing the same digital ledger, any updates made to the former directly affects the latter. The result is a fully automated process without any need for manual data entry.

Direct Synchronization of Attendance Logs into the Payroll Cycle

The biggest problem faced by companies while generating their payrolls is that they have no direct access to the daily attendance logs, leave status, and working shifts of employees. It is essential for payroll managers to fetch the required data from other sources such as the company’s biometric devices, sort it out using Excel files, and make elaborate calculations to come up with the final results.

By connecting your attendance monitoring process with payroll processing software, you will be able to get rid of all these issues. All geographically fenced attendance records, complex differential working shifts, and authorized leave requests will be fed directly into the payroll system. There will be no need for any manual file transfers and leakages of payroll amounts, and each employee will receive his/her rightful payment.

Reducing Internal Support Ticket Volume

Addressing simple queries from employees pertaining to tax deductions, missing expense reports, and even basic salary slips will consume more than half of the week of your HR department. In such a scenario, your team is faced with having to log into several individual portals merely in order to provide an answer.

With modern integrated solutions, however, you have the ability to provide your entire team with a comprehensive portal for digital self-services. Using advanced conversational technologies that include the AI layer (MAAX) and virtual assistant, called Jinie from PeopleStrong, employees have everything they need to access their digital payslips, review the tax deductions in their payslip, and even check on the status of their reimbursement requests on their own. This process results in reducing the ticket volume for your HR help desk by at least half.

Accessing Total Knowledge About the Cost of Labor

Labor costs are always the largest expense account in any accounting ledger for a Chief Financial Officer or members of the board of directors. However, when your labor statistics and spending on labor are segregated into separate systems, accessing the total cost of doing business becomes a very difficult and cumbersome process for various departments in your organization.

Having everything in a cloud allows you to get a combined view of your entire history of labor and financial data. By this way, you can easily get access to exact labor costs, bonuses, and any overtime expenses for your entire organization. The ability to access such data gives you the ability to predict your organizational changes and plan budgets without any doubt.

Enterprise Compliance and Audit Trail Management

Compliance with frequently changing laws relating to employment, changes in the taxation policy of the respective region, and the statutory requirement of contribution towards the provident fund are all extremely difficult tasks. Ensuring compliance within different locations becomes very challenging for any expanding organization.

Enterprise solutions provide the perfect solution to this problem by offering automatic updates in compliance, through cloud technology. Any change in the local regulations automatically triggers adjustment in the formulas of calculations. Moreover, any edit in the profile, any update in the database, or any login on the software is recorded permanently in the audit trail without any possibility of changes.

Moving Toward Strategic Workforce Growth

Scaling your business demands more than just matching your growth strategies with your existing employees and what you’re paying them. With employee performance metrics and your company’s core talent information directly linked to your payroll software, management can pinpoint those employees who are performing well and how much they’re being paid and promoted.

By having these types of insights, human resource managers can develop effective talent retention programs, address any disparities in internal compensation structures, and ensure that they have safe succession pipelines to fill critical business positions. Automating mundane tasks allows your HR professionals to free themselves from paperwork and work on improving skills and productivity.

With an enterprise-wide solution such as PeopleStrong, your executive team can achieve total data integrity and financial transparency.

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