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Why_Your_HRIS_Should_Be_Integrated_with_Your_PayrollYour HRIS does many different things. It connects your benefits administration to your carriers, and it automates some of your onboarding activities and workflows. It makes leave management easier by offering real-time leave calendars and helping you track accruals and usage.

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In short, your HRIS makes life easier for your HR department and for your employees by extension. What else should your HRIS do? There may be a few things you can think of. One of them may be assisting with your payroll.


Your HRIS Has the Information

Chances are your HRIS collects quite a bit of information about your employees. It may include personnel information such as updated employee profiles and job descriptions. A truly great HRIS will allow you to track wages, salaries, and other compensation. It may also allow you to track work responsibilities or other related statistics such as time on a project.

The idea behind collecting this information in most systems is to provide better workforce management. Knowing who is getting paid what can help you make better decisions about who to assign to a new project. It may help you make decisions about raises or other compensation. You can more easily provide feedback about performance.

Some of this information, however, is also necessary for managing payroll. For example, you need information about leave time accruals to manage vacations and parental leaves, but you also need that information to make the correct payments for payroll. Similarly, information about wages and salaries is important to determine efficiency, performance, and raises, but it’s also crucial for payroll.


Payroll Is Time-Consuming

The other thing you likely know about payroll management is it can be quite time-consuming. Your HR staff probably spends a good amount of their time on it each and every week. Once one payroll cycle is complete, the next one begins.

Managing payroll in its own little silo, away from the rest of your employee information and data, can cause problems. When you adjust an employee’s salary or wages in the HRIS, you have to go into your payroll system and ensure the information is updated there as well. When you add a new employee, you have to ensure their profile is created both in the HRIS and in the payroll system.

If that seems like it’s duplicating the work, it is. Your HR staff is effectively doing the same task twice over. Is it really the most efficient method?


There’s a Better Way

If you looked at the workflow outlined above and wondered if there was a way to reduce both time and duplication, you should know there is. Instead of entering everything twice over, once into your HRIS and once into your payroll management system, you can enter everything just once.

Your HRIS should support payroll management integration. This allows the HRIS to connect to your payroll management system. In turn, the two programs can exchange information. If you update an employee’s wage level in the HRIS, it automatically transfers to the payroll management system. When you create a new employee profile for onboarding in the HRIS, the payroll management system will receive the relevant information.


Why Is Integration Important?

The answer should be obvious. HRIS integration with payroll makes everything easier. Instead of painstakingly entering information in two separate systems, you can enter it once and be done. You only need to remember to update the HRIS in order for wage changes and raises to show in the payroll management system.

This simplifies payroll for your HR staff. In turn, they can complete payroll sooner and with fewer errors. Then they can get back to the truly important tasks, such as revising policies to ensure compliance, completing performance reviews, and more.


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John Griffin

John Griffin

John Griffin is Executive Vice President, Operations. With 16 years of experience, John has worked exclusively as a group benefits professional for his entire career, where he has had the good fortune to have worked with some of the best brands in the business as they entered new markets for the first time. He is obsessed with the client experience for both plan sponsors and plan members, which translates into tireless advocacy for bringing innovation into the insurance marketplace. John Griffin holds a BA from the University of Toronto and earned an MBA from Warwick Business School in England. John has written and published three books and spends most of his leisure time hunting down the best food in every city he visits.