Key benefits of a truly single HR and Payroll solution
When looking for a new HR and Payroll solution, there are a plethora of systems available on the market. But what are the benefits of a truly single HR and Payroll software, and how is that different to a solution that integrates HR software and Payroll software?
There's a lot of confusion about a cloud based single solution versus an integrated solution. Many providers will promote having one single solution, when in reality they offer several different pieces of software integrated together to act as one.
So, what is the difference between an integrated and single solution, and does it matter which one your business chooses? Read on to learn the key benefits of a true single solution like XCD's cloud based HR software.
Payroll and Human Resources departments have different purposes but they rely on each other to work.
When you’ve got a truly single solution that brings Human Resources and Payroll together in one software, it provides you with plenty of agility and common ground between HR and Payroll departments. Operational processes become streamlined, succinct and automated; information is readily available to all departments and there is no risk of duplicate data entry or data interface issues.
A single solution provides the ability for departments to work together seamlessly to deliver a coherent employee experience from onboarding, compensation management, payroll processing, payslips, and much more. Each department can see real-time changes to data, such as working hours or bank details, and control parameters can be put in place system wide to ensure on the right people access the right information.
Changes made in the Human Resources records are immediately available to Payroll, meaning there is no external interaction required to align the two areas of the business. This applies, regardless of the source of the data – whichever device, wherever you are, whenever you do it. This ensures there is only ever one version of the truth, which can often be a problem for integrated HR and Payroll solutions.
Whether you've got a large or small business, a single solution can make sure everyone is on the same page.
You may be interested in: Moving HR and Payroll to the Cloud
Increased efficiency for HR staff and Payroll department
A truly single HR and Payroll system can take the burden of administrative duties off Human Resources professionals. There is less paperwork to complete because a single solution only requires information to be uploaded once. There is also less opportunity for mistakes or confusion when all data is held within a single rather than different systems. This means that HR employees spend less time sorting out issues, which is likely to happen with separate payroll and HR systems or even integrated software.
Processing payroll can be time-consuming and complicated for Payroll Departments. Using a single solution means that this can be automated more easily, leading to less pressure on Payroll department staff. Using software to automate payroll calculations, benefits administration, and tax deductions brings increased reliability and speed.
A single HR and Payroll software can also streamline the onboarding process. A single software makes it easier to input data and information for new hires. Having a smooth onboarding process can be particularly useful for small businesses who need their new hires to reach optimum productivity levels sooner. The importance of a streamlined onboarding process cannot be overstated a good onboarding experience increases the retention of new hires by 82% and boosts productivity.
Moreover, it makes it easier to update the records of employees leaving the company, meaning that an HR and Payroll system makes it easier to manage people at every stage of the employee lifecycle.
The reduced administrative burden on Human Resources departments and Payroll teams means that they can spend more time on their other work. Plus, everything is on the paperless self-service portal so there's nothing for Human Resources or Payroll to physically file, eliminating mountains of paperwork.
Holistic View of Data and Analytics
One of the key features of a single HR and Payroll platform is the ability for managers and employees to have a single, complete view of their HR ecosystem including everything from recruitment, onboarding, absence, training and performance, to payroll and expenses.
You’re also able to obtain a holistic view of people analytics across complex data sets, which enables HR and Payroll to deliver and analyse both financial and non-financial KPI’s easily.
Built in and custom automated workflows, analytics, mobile and approval processes are all seamless with a truly single solution, which means there is no room for error, and approvals and changes are viewable instantly for both departments.
All facets of the system are developed as a single solution, ensuring that the up and downstream effect of any change is built into the software. This is important as many integrated solutions are written in different technology and have separate roadmaps, which can result in a fragmented user experience and challenges with syncing data.
XCD's Payroll and HR software solution also makes it easier to use analytics and data to produce reports using report templates and personalised dashboards. This makes it easier get insights about the business and workforce, and can inform performance reviews for employees.
Security and IT
A key problem with integrated HR and Payroll software is that where an interface or integration exists, there is a risk of information leakage from one system to the other as the data gets transferred. It is vital that sensitive data such as employees' personal contact details, payroll information, and tax information, is kept securely. Therefore, a single software - with a single database - rather than an integrated HR system and Payroll system is the safest option.
Another thing to bear in mind is upgrades. How do upgrades happen efficiently with an integrated solution? Keep in mind that there’s a good chance keeping two or three different pieces of software up to date and in sync could cause headaches, which is precisely what you’re trying to avoid.
Let’s not forget the advantage of a cloud based single solution too – something born in the cloud will have the required level of security built in as standard, as opposed to on premise solutions that move to the cloud. These will require a new level of security to be added on later, which can get very complicated.
HMRC and GDPR Compliance
Sensitive HR and Payroll data is the number one GDPR risk for businesses. With a single solution like XCD's HMRC-recognised software, it's easier to make sure that your company is fully compliant and not exposed to liability.
A truly single solution provides one platform to hold sensitive personally identifiable information (PII), in comparison to two separate databases holding the PII in different places. This makes information security and GDPR compliance much easier, and much more cost effective, so you don't have to worry about the penalties of non-compliance.
An all-in-one HR and payroll software also makes it easier to stay up to date with HRMC legislation. Ensuring your payroll software is both HMRC and GDPR compliant is one of the best way to safeguard your business' money processes. Another benefit of a single HR and payroll system is that it provides records that make audits easier.
So far, we've looked at the benefits of a truly single HR and Payroll system for a company, but this can also have positive impacts on the workforce.
Knowing that employee data is safe, up-to-date, and compliant in one single cloud based software system is reassuring for employees. With a single rather than integrated solution, they are less likely to receive a paycheck late because of errors or inconsistencies in payroll software or problems with tax compliance. They know that any overtime or paid leave will be instantly updated in their records.
The self-service nature of HR software means that employees can access their data on the easy-to-use software, viewing payslips and other records. Self-service means that employees have more control and don't have to go through HR professionals to submit time-off requests, or contact Payroll to see their payslips.
From their onboarding where employees can upload relevant information to their employee profile, to tax calculations, and analytics used to inform performance reviews, a single HR and Payroll software streamlines processes for employees and employers.
Happy employees make a more productive workforce, so using a single, user-friendly, end-to-end HR and payroll software solution can benefit the entire company and improve morale for everyone.
You may be interested in: How can technology improve employee experience
There are a number of additional benefits of a cloud based single solution for HR and Payroll, and we’d be happy to talk through them with you, but when considering any new HR software, these things will often be at the forefront.
If you’re writing a business case and exploring your options now, read our article on Writing a Business Case for your HR and Payroll Software, or download our Buyers Checklist today.
Or, book a demo today to take control with a cloud based, HMRC approved, single HR and Payroll solution.