Three Tips For Integrating HR & Payroll

Understanding how payroll can drive employee engagement

There are many famous food ‘combos’ such as peanut butter and jelly, spaghetti and meatballs, not forgetting strawberries and cream. (I could go on). But when it comes to businesses, arguably the most well-known combo is HR & Payroll – where the functions of finance meet the administrative prowess of the human resources team.

Paying employees an accurate amount, on time, is really important for several reasons. One solution that many businesses use to reduce the risk of error, is software integrations, to help streamline the conjunction of HR & payroll. Firstly, payroll mistakes where overtime is missed, or hours worked are paid at the wrong amount, can be costly for both employee and organization and time-consuming to correct.  Secondly, incorrect payroll can result in a serious lapse in productivity, as well as negatively affecting company culture. See how payroll can drive employee engagement, here. To learn more you can read about common payroll mistakes.

The first tip for making sure your HR & Payroll work together seamlessly is to ensure your HR records are up-to-date and accurate. A lot of companies centralize their HR system, in order to integrate up-to-date, accurate employee data into the other systems that they utilize. This means having the correct employee contact details, and salary information, you can set reminders to check and update this information periodically.

The second tip is to make sure your HR system can export the data your payroll system needs and that your payroll system is able to accept the file types the HR system can provide. Most payroll and HR providers will be able to import/export basic file types, such as .CSV

The third and final tip for creating a harmonious HR & Payroll ecosystem is to ensure you have a data validation process in place. Once your integration is set up properly, the majority of errors that occur will be human errors. You need to have a method of validation and a process for correcting any potential errors which occur. Being able to recognize and solve problems early, or even pre-empt issues, is a hallmark of a high-performing payroll team.

This article first appeared here.