Integrating people management

The last few years have seen an increasing trend towards greater integration between HR and payroll. Driven by the need to increase efficiency and improve information sharing this trend also reflects the desire to create much greater synergy between the two functions. Sharing data and processes helps to ensure that payroll and HR systems are synchronised and that everyone in the business, whatever their role, has access to the most up to date and accurate HR and payroll information. Why integrate your HR and Payroll solutions?

Bringing two vital functions together

Both HR and payroll have a vital role to play but they do not always share the same priorities, which can lead to issues. Mistakes such as employees being paid incorrectly, or in the worst case, not at all, are highly visible and have the potential to undermine employee relations which HR has worked hard to build.

The payroll team, however, is very dependent on accurate and timely information if they are to do their job properly, and any time lag on the part of HR in providing information about employees can lead to errors not of payroll’s making.

Creating a more unified approach

By creating an integrated system, in which information and processes can be shared between the functions, the two teams are able to work more closely together, building bridges and helping them to focus on the joint goal of managing human capital effectively.

Highlighting areas of overlap where both functions rely on the same information also helps to streamline processes and dramatically reduces duplication and error, while introducing workflows that ensure everyone knows what is going on will help to avert potential problems, keeping both teams in the loop.

Reducing administration

An integrated HR and payroll system works harder for the organisation, allowing data to be entered once, reducing the administrative load and freeing up staff to focus their time on the more strategic elements of both payroll and HR.

At Sage we have found that those customers using our SnowdropKCS integrated HR and Payroll solutions can save up to 40 hours a week in administration, effectively freeing up a whole person, which could equate to between £17,000 and £25,000 in salary alone.

Introducing self service

An integrated system also makes it easier to introduce self service functionality as data only needs to be updated on to one database, and employees can view information relating to pay, benefits, holiday entitlements, and anything else they need all in one place.

As a result our customers have found that the SnowdropKCS Self-Service module can reduce administration by as much as 80%.

Encouraging greater collaboration

Sharing data also increases the level of collaboration between the two functions, reducing requests for information and therefore the administrative load for both teams, while also ensuring that management reports are entirely consistent.

An integrated system can also clarify who has responsibility for which specific areas, so that everyone knows which data is the remit of HR and which of payroll, reducing duplication and inconsistencies.

Ensuring greater security

Integration also means that security can be managed across both systems, ensuring that HR cannot change or access information that is purely the remit of payroll and vice versa. At the same time everyone can have access to everything they need and there is a single audit trail to keep track of any and all changes

Realtime HR and payroll integration

One of the key features of SnowdropKCS is the enhanced integration it delivers. In recognition of the fact that there is simply no point in entering and keeping HR and payroll data separately. This also allows data entry to be shared across different areas of the business, evening out the peaks and troughs depending on their workload.

In addition SnowdropKCS also offers greater integration with other Sage ERP solutions. Information from the payroll about departmental and project costs, for example, can now be shared with other Sage modules, such as finance and project accounting, contributing to the creation of a more integrated and easier to use business wide system.

The benefits of this kind of organisation wide approach have led to over 70% of our HR and payroll customers using SnowdropKCS Personnel, as it helps them reduce administration while providing a platform for planning for the future.

Taking a strategic approach

The benefits of integration extend beyond the practical impact on administration to the strategic role of HR and payroll. Improving the flow of management information within the organisation, integration enables the production of timely and accurate management reports, while also helping to ensure that you are utilising your HR and payroll departments as effectively as possible.

Why integrate?

Eliminate the duplication of data entry - Changes made to the shared HR and payroll database need to be entered only once, reducing the workload by as much as 40 hours a week.

Reduce the amount of paperwork - If HR, for example, creates a new employee benefit, the payroll changes can be automatically established as part of the benefit plan so there is no need to submit another paper document to the payroll department.

Integrate your reporting - Reports containing employee information and benefits data from HR alongside pay data from payroll are only made easily possible in an integrated solution.

Create a better employee experience - An integrated, self service solution means that employees can easily access everything they need in one place, reducing queries and increasing employee satisfaction.

Reduce errors - With a single integrated solution there is much less chance of errors occurring as data needs be entered once and is then available to whoever needs it.

Enhanced collaboration - Clarifying the unique responsibilities of each function while sharing data and processes helps to synchronise HR and payroll functions while providing everyone in the business the most up to date and accurate information.