Most of the benefits of having an integrated HR solution are fairly obvious but with this article, I will also point out some of the reasons for keeping payroll and HR separate.
• Payroll HR Integration, No Double Entry – The simple reason for purchasing an integrated HR solution is the elimination of double input between the two systems. However, this reason may not be valid given that most, if not all, vendors will offer some type of interfacing options to tie your HR data to your payroll data; thus, eliminating double input. If you are going to use two separate systems for payroll and HR, during your evaluation, make sure that these two systems will speak with each other in some fashion.
• Payroll HR Integration, No Interfaces – While interfaces eliminate double entry with your HR solutions, they don’t offer the same benefits as a truly integrated system which shares the same database. The first issue is that your data won’t be real time. Let’s say, for example, that you push data from your payroll application to your HR application. The HR data is only valid to the date of the last data transfer. If you ran a turnover report this morning and the data had not been transferred in two weeks, your report would be inaccurate. Software interfaces may be automatic or they may be manual, which requires someone to remember to run the process to update the information.
• Advantage of not integrating HR Payroll software – The biggest advantage of not purchasing an integrated solution is that HR is not tied to payroll changes. You may love the existing integrated HR application you work with but if it becomes necessary to change payroll, you may have to change your HR application, as well, to a less desirable system.
• You may not have any other choice – If your Payroll application does not offer an HR function or an adequate one, you may be forced to seek out an HR software solution from another vendor who will provide an interface to your payroll application. Right or wrong, over the years many have perceived ADP as being weak on HR and every Human Resource software company I have come in contact with, offers some type of interface to their payroll system.
About the Author
Clay Scroggin worked in the Human Resource and Payroll Software Industry for more than fifteen years. During that time Clay, and those who worked with him, assisted hundreds of HR professionals with the sales and implementation of Human Resource software. In 2007, Clay began working on compareHRIS.com, a site dedicated to assisting HR professionals with their search, selection, implementation and use of HR systems. The site contains several tools to assist HR professionals with their research including an HRIS Selector Tool and an HR Solution Quick Comparison Tool.