Payroll processing, time off and absence requests, attendance monitoring, and other HR functions are still managed by many organizations using disparate tools and systems. Regrettably, utilizing disjointed and unconnected systems can lead to inadequate data transparency, repetitive tasks, inefficient use of resources, manual entry, and convoluted procedures that hinder the productivity of your HR staff. 

You may save a lot of time that could be better used to improve your people experience by integrating your payroll and HR tools and processes. It will increase efficiency, compliance, employee experience, and reporting.
Data sets and structures are standardized across systems and provide a comprehensive picture of all employee-related information when all workforce-related data is housed in a centralized system acting as a single source of truth.
What is Payroll Integration?
Integrating your payroll software with other software programs or technologies you use for personnel management is known as payroll integration. Stated differently, synchronizing payroll and other software enables data interchanges between those systems and provides you with access to all required data. 

It could be your accounting and finance software, the tool you use to monitor staff attendance and working hours, or your central HR system, which houses your employee data and employment-related paperwork.
Advantages of Integrating HR with Payroll Software
Businesses can benefit from an integrated HR and payroll solution in some ways, such as increased employee experience and reporting, increased efficiency and compliance, and more. Integrated payroll and HR systems have the following advantages.
1.  Better employee experience
Ensuring optimal employee experience throughout the employment cycle is crucial for talent management and retention strategies. Payroll and HR-integrated solutions frequently include employee self-service features. 
Your staff will have access to all employment-related data in one location, including paystubs, job and contract specifics, and benefits.

Additionally, using an integrated solution is far simpler than navigating several platforms requiring separate logins. Plus, it saves time because employees just need to update one system rather than many if they wish to update their personal information.
2. Reduced errors
In Excel, it only takes a single inadvertent line jump to cause mismatches throughout an entire dataset. While manually entering data, errors are likely to happen. Inaccurate data in reports can result in disastrous business choices. As a result, organizations want to minimize the quantity of manual data handling.

Integrating the payroll and HR systems is one method to do this. If the two systems are linked, there is little chance of errors, enabling automatic upgrades and data transfers. This is because fresh data only needs to be input once, compared to twice. The current data update is comparable. Furthermore, happy employees translate into reduced turnover rates.

3. Automating administrative duties
Businesses can eliminate laborious administrative duties and manual data management by connecting their payroll and HR software. It's easier to integrate both systems and enable automated data flows than to manually transfer data from the payroll system to the HR system (or vice versa) and waste significant time and resources keeping the data in both systems up to date. 

Take staff time and attendance records as an example. Your HR system is often where time and attendance data is gathered and kept track of. However, the data sets are needed for the monthly payroll run or even at shorter intervals if your pay period is weekly, bimonthly, or semimonthly. Just consider how long it takes for each payroll run to transfer the data from the HR system into the payroll program.

4. Enhanced reporting
Connecting your HR and payroll systems results in a single source of truth for all workforce-related data. Having all the data in one location improves transparency and enables faster, more effective reporting. Reports are generated and distributed much faster because your team can pull data from a single centralized source (rather than spending hours filtering through many systems). 

Generating dependable reports with an integrated HR and payroll system powered by a single central platform typically only requires a few clicks. Furthermore, because data types and structures are harmonized across systems and provide a comprehensive view of all information linked to your workforce, the accuracy of the reporting will rise.

5. More complaint
In the end, having all of your HR and payroll data organized also aids in increasing compliance. A lower risk of fines results from fewer payroll reporting errors, and meeting deadlines for payroll tax and other reports mandated by the authorities is made simpler by transparent, centralized data. Complying with data protection laws, such as the GDPR, is an additional consideration. Payroll and HR solutions that are linked, often cloud-based, offer the best data security needs. 

Challenges of Integrating HR and Payroll Systems
Payroll and HR integration services can present various difficulties, specifically if done hastily or poorly.
In light of this, the following are some typical difficulties to be mindful of while considering the integration of payroll and HR.

1. Resources and time
integrating payroll and HR will require different amounts of time and resources, depending on the system. Payroll platform integration will be easier if you are currently using HR software. 
Why? Since you would already have access to employee data on a functional platform, including contact information, salary, benefits, allowances, and deductions. Consequently, it will be considerably simpler to transmit this data into a payroll system.

On the other hand, gathering the information needed to enter into the payroll and HR software could take some time if you still need HR software. The process could be either straightforward or intricate, and it could get more difficult as your company grows. Everything relies on how your current process is configured at the moment. 
To combat this, we advise you to plan and make sure you have a solid plan of action in place to minimize the impact on your company's daily operations.

2. Incompatibility between software
Payroll integration is frequently offered as an "add-on" by stand-alone HR software suppliers. It is called this kind of integration a "platform." As an illustration, if you utilize PeopleHR's HR software development services, they would essentially "turn on" the payroll platform integration. 

It would be easy since the company already has your data set up. Any missing information that doesn't get through, like DOB, could merely need to be filled in.

3. Innovative methods of operation
Any new program you introduce to your team will need them to adjust. For instance, a contemporary HR system frequently includes "self-serve" functionality for staff members. Users are required to enter a system and provide information (such as requests for holidays, time and attendance, and so forth). 

Employees will rapidly see the advantages of this new strategy once they get used to it. For instance, they will find it easier to request vacation time (especially if they can do it from the comfort of their mobile device).

Best Practices of Integrating HR Systems with Payroll
These pointers will assist you in achieving a seamless and fruitful integration. 
1. Determine your needs
You must evaluate your present and future demands before initiating the integration of your payroll system with your HRIS. What are your integration's aims and objectives? Which features and functionalities are essential for both systems? 

How frequently should the data be updated and synchronized between them? What procedures will you follow for reporting, data reconciliation, and validation? You can determine the needs and scope of your integration project and select the ideal solution for your company by providing answers to these questions.

2. Select a workable resolution
Not all HRIS and payroll systems are compatible with one another. Some may use various data formats, protocols, security standards, or functionality. That's why you should execute a study and examine several choices before deciding on a solution. 

Look for a service that has a strong track record of integrating with your HRIS or payroll system or one that provides a flexible and customized platform.

3. Plan and test the Integration
Once you decide on a solution, you should thoroughly prepare and test your integration. You should develop a detailed project plan outlining the roles and responsibilities, dates, milestones, risks, and contingencies for your integration. 

You should also test your integration in a sandbox or staging environment before deploying it live. Testing your integration allows you to identify and correct any problems, defects, or gaps in your data or functionality. You should also record your test results and methods for future reference.

4. Monitor and manage the integration
After you've deployed your integration, you should frequently check and maintain it. You should audit your data quality and correctness, as well as your system's performance and dependability, security, and compliance. 

You should also upgrade your systems and integration as necessary to reflect changes in your company, rules, or technology. Additionally, you want to ask your vendors, stakeholders, and users for input on enhancing your integration and addressing any issues or problems.

Conclusion
If your payroll software isn't fulfilling all of your needs or you are outgrowing it, you might not need to make any changes.
Time monitoring and HR assistance are both included in payroll integrations. The app that best fits your demands and budget can be chosen thanks to connectors. Just make sure that the connections are solid, the data is accurate, and a test run is successful before running payroll software with other apps.