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The Power of Integrated Payroll Software

HR has traditionally been a mundane and administrative function. It involves endless excel payroll calculations, mountains of paperwork and handing out paper payslips.

Thanks to advancements in technology, these administrative HR processes are largely automated today. Key HR workflows such as employee record keeping and leave management can be centralised on a single platform for easy access. This frees up valuable time for HR to focus on being a strategic contributor to the organisation as opposed to merely executing operational functions.

However, there are times where HR software and payroll are placed on two separate software, with some even arguing that the latter should fall under Finance’s purview. A survey of global payroll by ADP revealed that close to half of 1,100 respondents reported that their payroll function falls under the finance functional leads’ job scope. Interestingly, survey results from EY’s global payroll survey found that 57% of respondents currently have their payroll function reporting to HR.

In spite of these mixed reactions, there is no single solution whether payroll should “rightfully” be under HR or Finance. There are multiple considerations when integrating payroll with HR. Here are some benefits of implementing an integrated payroll software.

Streamlined HR process

One of the most apparent benefits of integrated payroll software is efficiency. Automating repetitive processes such as employee overtime hours and attendance minimises human error that comes with data entry. When it is linked with the payroll software, this facilitates accurate overtime and payroll calculations.

In addition to compensation, integrating payroll software with HR platforms enables ease of benefits administration. For instance, a new employee that has been onboarded to the organisation’s benefit programme can have their benefits linked together with their compensation. This helps to improve the accuracy and timeliness of benefits administration while reducing the workload on HR.

Improved employee engagement

A unified HR and payroll software can empower the organisation’s workforce, improve internal communication and enhance employee engagement. Timely and accurate salary disbursements play a key role in keeping employees motivated and productive. Equipping the integrated payroll software with employee self-service tools further enhances employee experience. It provides them with easy access to key HR information and salary details without having to rely on HR. Introducing performance management tools on the integrated payroll software also offers an avenue for employees to view real-time feedback and track their own performance metrics. This may empower employees as they are able to take charge of their own HR needs.

Enhanced data analytics

An integrated payroll software helps to provide additional data insights to the HR team in terms of employee headcount, turnover rates and even employee satisfaction levels. These HR data analytics enables HR to identify gaps and areas of improvement in existing HR policies and workflows. Linking the integrated payroll software with business intelligence tools offer deeper financial insights on employee costs and productivity metrics. These data insights allow HR and senior management to make data-driven decisions when it comes to optimising HR budgets and workforce capabilities.

Integrated payroll software is extremely useful in helping organisations to improve data accuracy, streamline HR process and offers HR data analytics to drive data-driven decision making. From an employee’s perspective, complementing the integrated payroll software also empowers employees to take charge of their own HR matters without over-relying on the HR team. When both HR and payroll functions understand and speak the language of the business, it can also help cross-departmental measures, as can building financial or cost Key Performance Measures for HR (such as cost per hire, revenue per employee) that finance will relate to. Organisations should always weigh the pros and cons of integrating payroll and HR software together before deciding which may be the best option.


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