Stand-alone VS. integrated HR and payroll system

There are several HR or payroll systems in the commercial sector. All software should perform the same fundamental duties, yet businesses used to keep software separate via stand-alone systems. These obligations, however, have expanded dramatically. As a result, more companies prefer to deploy integrated HR and payroll systems.

In this article, you will learn how stand-alone and integrated HR and payroll systems vary. HR and payroll departments are becoming more strategic. As a result, integrating both into one is the most natural way to simplify both procedures. We will discuss many aspects that will assist you in selecting the best HR and payroll system:

  1. How far has human resources technology advanced in recent years?
  2. What is HR software?
  3. Is choosing a stand-alone system the right thing for your company?
  4. What is an integrated HR and payroll system?
  5. What should you choose for your company: Multiple stand-alone systems or an integrated HR and payroll system?
  6. How can implementing an integrated HR and payroll system benefit your company?
  7. Move away from multiple stand-alone systems and start using Connect HR’s integrated HR and payroll system

1. How far has human resources technology advanced in recent years?

Technology has evolved to previously unanticipated levels. Even more areas of company organizations are seeing rapid technological advancement. One of these is the administrative regions of the same, notably, the HR departments. In reality, new technologies are altering how these departments function.

According to Connect HR research, these technologies have a market share of up to 65 percent in some locations. This is over 30% greater than in 2018. So, when we look at this increase from an analytical standpoint, it is critical to observe such change. Automation and artificial intelligence (AI) have commanded evolution.

Many businesses can transform HR management as a result of big data management. Indeed, many firms now consider automation and AI components of the human resources department.

As a result, the human resources department has assumed a considerably more strategic role. The possibilities that technology innovation has created are becoming more evident in businesses. But, the key aspect to know is that we have been only witnessing the tip of the iceberg. Nonetheless, we may already see significant developments in digital HR solutions.

2. What is HR software?

Companies have begun to use solutions that aid in managing HR-related responsibilities due to technological advancements. Managing the human resources department is difficult even in huge organizations. Simply having the obligation of managing the company’s personnel adds significantly to the workload.

HR software includes any corporate software that aids in managing personnel information and HR-related duties. These responsibilities might range from maintaining employee paperwork to more difficult ones like payroll management. In general, they assist in operating people, the automation of manual operations, and information organization.

One of the benefits of deploying this software is that managers and Human resource teams will save time. This is primarily attributable to the automation of the HR department’s everyday activities. They also enable improved planning of executed tactics, resulting in better budget management and decision-making.

Companies are specializing in human resources, such as Connect HR, have been studying these demands for years. These solutions have evolved into many systems focusing on each HR process. As a result, technologies such as HR and payroll software, leave management systems, and others are available.

3. Is choosing a stand-alone system the right thing for your company?

Many firms have incorporated new technology yet wish to keep things as conventional as possible. As the name indicates, stand-alone systems are a system that usually focuses on certain human resources operations but fails to grow beyond that.

What exactly does this mean? HR departments that employ a stand-alone system encounter constraints in the system’s functions. For the most part, these limits apply when executing activities other than those conducted by the department. Typically, they involve payroll or employee benefits management.

This indicates that the organization must deploy a more significant number of solutions. The monitoring and operation of all of these implemented systems add to the effort. Furthermore, these systems will require regular software updates, which may be a headache.

However, as these systems have evolved, it has become viable to address the underlying causes of these issues. As a result, many organizations have not integrated HR and payroll systems. Nonetheless, they require a significant amount of time and energy from HR employees. But what if I tell you there is a single tool that could handle all of these operations in one place?

4. What is an integrated HR and payroll system?

These tools are the integrated HR and payroll solutions that we described. These technologies are becoming increasingly available in the corporate industry. What is the explanation behind this? Because of cloud computing. Companies such as Connect HR have been able to design solutions with HR payroll integration owing to the cloud service.

Companies may handle employee data far more efficiently with stand-alone solutions than many stand-alone systems. This is because businesses need to interact with one provider rather than several. As a result, deploying integrated HR and payroll systems will minimize workload.

This time savings is since the complete database is contained within a single solution. Human resources can become more strategic with integrated HR and payroll software. That is because it makes data analysis easier. As a result, this department may direct the personnel toward the company’s goals.

Document management, payroll records, work-time, productivity, department efficiency, and more may all be stored in one location. On the other hand, companies using stand-alone systems have the information segregated into various solutions. This can lead to a slew of issues in human resource management, affecting the organization’s production and efficiency.

5. What should you choose for your company: Multiple stand-alone systems or an integrated HR and payroll system?

The commercial marketplaces of today are highly competitive. Every company is concerned with its success. Because of it, there is no room for error or waste of time if you wish to achieve your goal. As a result, putting the best HR and payroll system in your firm should be a top priority.

But which one should you use? Is it better to have separate HR and payroll software or integrated HR and payroll software? Before making a selection, consider each option’s benefits and downsides. On Connect HR, we advise customers to examine their company’s unique requirements. In addition, consider how the chosen technology will “fit” into any HR strategy.

When it relates to human resource management, you want efficiency, efficacy, and productivity. The number of complications and mistakes in human resource management is reduced by streamlining these procedures. As a result, many business organizations are adopting an integrated system. Dealing with a single piece of software is faster and more efficient than dealing with several systems.

So, which one should you go with? It all relies on the type of business evolution you desire for your company. Stand-alone systems are an option if you want something more conventional, where you have complete control over all data created by the processes. However, if you want to make your business more productive, practical, and effective, you should use integrated HR and payroll software.

6. How can implementing an integrated HR and payroll system benefit your company?

As previously said, the HR and payroll system makes perfect sense if you want to improve the administration of the human resources department. Without an HR payroll link, mistakes in calculations and procedures might occur, affecting employees directly. In most circumstances, this is currently inexcusable.

You will be able to manage time and attendance, onboarding/offboarding, employee benefits, payroll, and more with the deployment of an integrated HR and payroll system. Furthermore, this will assist your firm in obtaining the strategic knowledge required to tackle the company’s retention concerns.

Human resources will be able to accomplish entire workforce management with the support of integrated HR and payroll systems. This is critical since HR will have a more full and accurate picture of employee data. This will be critical in 2022. Above importantly, your staff will have far more accessible access to information.

Integrated HR and payroll systems provide several benefits. In this occasion, we will explain you some of the advantages that this software may deliver to your organization:

6.1 An enhanced compliance

An integrated payroll system simplifies compliance with rules such as WPS in the UAE. Compliance with state legislation is required in every firm. In some circumstances, HR data from several procedures are needed for compliance.

Such information is contained in integrated HR and payroll software, which automatically handles such regulatory rules.

6.2 Reduce paperwork

One advantage of HR digital solutions is that they minimize the quantity of paperwork. You no longer need to duplicate bank transfer and tax withholding documents for payroll distribution. This is minimized, for example, during the onboarding process. Because you need to upload new hire information once with an integrated HR and payroll system.

You can also provide new employees with access to a site from which they can submit payroll forms online—all of this before their first day on the job.

6.3 Improved data security and precision

These systems retain various sensitive information about the individuals that comprise the company. HR teams will discover bank information, tax and personal information, and other information. On the other hand, integrated HR and payroll systems provide a safe foundation for avoiding significant cyber threats.

Furthermore, they allow HR departments to increase data accuracy. This is because just the data is housed on a unified system. This significantly decreases the possibility of human mistakes. As a result, organizations feel more safe trusting in all data held in these systems.

6.4 Payroll procedure time savings

Payroll processing may be time-consuming, particularly if you have a small payroll or HR team or a tremendous workload. Choosing an integrated HR and payroll system allows you to automate a more significant amount of your payroll procedures.

This allows your staff to save significant time and work throughout the payroll process. They will be capable of making more precise payments, allowing the cut-off date to be near payday.

6.5 Easier measurement of staff performance

HR payroll integration allows you to build a happier and more well-designed work environment for various aspects. Employee training and orientation programs are examples of such elements. This can also serve as an additional function for comparing a working individual’s performance to that of others. Such data analysis can result in new employment techniques and recruitment procedures.

6.6 Improves communication and transparency

A single HR and payroll software solution can empower your workers, improve internal communications, and increase transparency. Timely and accurate wage distributions greatly influence employee engagement. Concurrently, providing an integrated HR platform with self-service options for employees improves the employee experience.

7. Move away from multiple stand-alone systems and start using Connect HR’s integrated HR and payroll system

HR resources must be expanded as HR and payroll eventually merge to play a more strategic function inside the firm. Although stand-alone solutions were widespread in the past, integrated HR and payroll systems are now the most recommended. With these solutions, you can provide value to your workforce while also entirely using your resources.

Have you decided to make a change in your company? Connect HR provides the best integrated HR and payroll software in the UAE. We created our solutions by combining all of our expertise gained from over 20 years of experience in human resources. We have established our services as one of Dubai’s most sought-after HR solutions.

Products like our HRMS and WPS payroll have you covered if you are seeking HR payroll integration. They provide several solutions to help you simplify activities and establish a high-performing and cost-effective team. And you are making data more accessible and helpful to the entire organization.

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Would you like to contact the team of Connect HR for more information about the integrated HR and payroll software? If you have any questions about all of our services and pricing, ask us via +971 43 316 688; you can also ask our team at contact@connecthr.ae.

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Author avatar
Nakul
Nakul Sachdeva is Head of Recruitment at Connect Resources. His expertise has crossed multiple categories and channels with functional expertise in a variety of industries. He has 10 years of career in executive search firms and supported end to end Recruitment for Major Banks, Financial Institution, IT and Consulting firms based out of Toronto, Canada and Dubai, UAE. He manages end to end Recruitment at Connect Resources as well as serves as the client’s initial point of contact when seeking recruiting services.

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