We all know that having integrated Payroll and HR Software would make life a lot easier, but in order to secure the budget needed for the software, you will need a very clear business case for how the investment will benefit the organization.
The case for integrated HR and payroll software
Take a look at these items that you should consider when building your business case:
Are You and Your Organization Ready for Change?
Successfully implementing a new Human Resource or Payroll system requires not only money but a great deal of planning, time and commitment. Before taking on this process, it is important that you are very clear about your objectives. The software can drive efficiencies and also provide some very valuable analytical data. However, you need to be realistic about what you are going to do with the information once you have it. If your organization has policies in place and you discover that they are not being adhered to, who will be responsible for ensuring that they are actively enforced? It is very likely that not just the people within your team, but across the wider organization, will have to make changes to the way in which they work.
Regardless of what your motivation is to select an HRMS – improve service, reduce risks or drive efficiencies – calculating how it could impact the bottom line is essential to your business case. To start, you will need to gauge the current financial impact of employees not following to policies or managers not enforcing them. It is possible that you already have some idea as to where the profit leaks are in your business. Use this information as a starting point. This could be items such as absences, tardiness, excessive breaks and overtime. Next, you should calculate the man-hours that could be saved across your organization by entering, reconciling and searching for this data. You can also keep track of how long it takes to enter timesheet data, to reconcile that timesheet data for the payroll department, and duplicate entry across your HR, Payroll and Finance groups.
Increasing Productivity… or Reducing Headcount
Once you have a clear idea of where time could be saved, you will then need to consider what value-added activities employees could be completed in the time they would have spent entering, reconciling and searching for that data. You may be surprised exactly how much time is spent each pay period gathering timesheet data and reconciling it. Payroll software with an integrated Time and Attendance system will simplify this process to the extent that a reduction in headcount is almost unavoidable.
Human Resources and Payroll are constantly changing, thanks to new legislation. Non-compliance can lead you down a wrong path. Mistakes can also endanger employees’ and clients’ well-being and damage an organization’s reputation. An integrated HR, Payroll and Time & Attendance system, such as InfinityHR, will provide you with the tools to ensure these things do not get overlooked and will considerably reduce the risks to your organization.
Selecting an HRMS system is a significant investment of both time and money and both will potentially be wasted if you cannot demonstrate HRMS ROI. Of course, selecting the HRMS solution is only the first step in ensuring the return on your investment. You also need to have a well-managed implementation process, user engagement, and ongoing post-implementation training and awareness – to find the system’s true value to your business.
Infinity Software is pleased to integrate with Millennium, iSystems, and other payroll platforms into our HRMS solution. To learn more about integrated Payroll and HRMS, please contact us at email@example.com.