The management of workforce payroll is not easy to do if you’ve outsourced it entirely, or if you’re using a separate system apart from your Human Resources Management System (HRMS). The very D.N.A. that payroll is made up of includes data from employee benefit selections, time and attendance history, bonuses earned from performance management and more. If you’re not integrating payroll with your HRMS, then your business may be at risk to be within non-compliance of U.S. labor laws due to possible data inaccuracies that may negatively affect employee payroll, their benefits and also your overall employer brand.
The Value of HRMS and Payroll Integration
Let’s learn why you should sync your payroll and HRMS together to create a seamless experience for both your employees and the business.
One system of record
When integrating payroll and your HR automated solutions, your technology becomes unified. The data shared between payroll and HRMS sync with one another automatically. This prevents human hands from taking information from one system and moving it to another.
Manual inefficiencies bring upon human error and double-entry issues. These problems can disrupt payroll, and in turn, affect how your business operates. With 78 percent of the U.S. workforce living paycheck-to-paycheck, an interruption in pay is not acceptable. Your workforce will leave you in droves the moment you have issues paying them.
Navigate compliance easier
Payroll-, ACA-, safety-, union-compliance and more; HR professionals are required to follow many sets of labor laws, or risk incurring heavy penalties and other monetary fines. By integrating payroll to your HRMS together, the two systems will be able to communicate more efficiently to you when you’re at risk of being non-compliance.
For example, varying on your local, state and federal laws in your area, your systems will be able to communicate to you when any member of your workforce is close to becoming non-compliant with wage and hour laws. You can ensure compliance with properly configured settings.
Additionally, with payroll as your system of record, in the event that any audits are performed on your business due to allegations of hour and wage theft; you’ll be able to quickly present any relevant, historic data to present in your defense.
Generate accurate reporting to improve payroll and HRMS processes
To acquire any reporting from your data, you know it’s timely and costly process if you’re manually compiling it or are relying on a third-party to package it together for you. The latter route isn’t always the most accurate either because they simply cannot, or do not understand what your reporting requirements are.
An integrated payroll and HRMS gives you the power to create customized reports and to quickly put them together in hours, rather than days. With processes developed and automated, the data you attain will grow in abundance, transfer seamlessly between technologies and gives you the ability to make actionable decisions to develop more efficient workflows over time.
One example you might come across is how your business keeps track of its bonuses paid out to qualified employees. In the past, if you relied on memory and manual workflows to update payroll to account for any bonuses paid out, you may have been at risk of forgetting to input the information for any number of employees. These types of mishaps can come back to haunt your business during tax season.
With a performance management module synced into your payroll, you won’t have to worry about remembering these bonuses paid out because the system would automatically do it for them.
Empower employees, enhance transparency
A unified payroll and HRMS system can empower your workforce, improve communication and enhance transparency. Here’s how:
- Integrated systems with employee self-service tools empower your workforce to review their paystubs, benefit statements, PTO and sick leave, performance goals and training plans all through a portal. Each hub is customized to each individual person who has permission to access their own data.
- Communication is improved with a single system. When one edit is made to an employee profile, the system will find every instance within itself that also needs to reflect the updated information. This functionality saves HR teams hundreds of hours per year in updating employee datasets.
- Additionally, employer production increases because employees are more focused on their responsibilities, rather than wasting time writing emails, or making phone calls to HR to retrieve previous paystubs or trying to add family members to their insurance for example. Self-service tools give employees the power to make these updates themselves. HR only needs to approve them.
Employee self-service tools are very important in creating company-wide transparency and workforce access.
InfinityHR Payroll Processing and HRMS Functionality
The cloud-based InfinityHR platform is a modular suite that features tools in HR Management, Talent Management and Payroll Processing. The solutions include:
- Payroll Processing
- Core HR—featuring employee self-service tools
- Benefits Management
- ACA Compliance
- Time and Attendance
- Applicant Tracking System
- Performance Management
- Learning Management
- Succession Planning
Because the suite is a true, cloud-based platform, it is built to scale for your business the minute your requirements change. With a built-in integration to over 300 industry partners, you’ll be able to integrate your technology to best-in-class insurance carriers, ERP systems, HRIS, business intelligence tools and more.
Take control of your data today by integrating payroll with HRMS the InfinityHR way. Schedule a demo to see the automated platform in action.