If you work with payroll and/or HR , you are certainly well acquainted with HR systems. But have you thought about whether it is an advantage to have both payroll and HR in the same system or not? We have. And we believe that having this in one and the same system will give you very clear benefits. So let's tell you more about both what and why.
Register information - once
When you choose a solution that has payroll and HR in one and the same system, you only need to register information once . This way you will save time (because double registration is actually time-consuming), and you will reduce errors (because manual errors do happen). You will simply work both easier and faster .
And then it's like this, if you haven't filled in the address of an employee in HR your system, it will be wrong when you try to drive payroll . This must be up to date. If you have payroll and HR In the same system, you get validation that HR data is correct , so you don't have to think about it.
There is nothing called that in payroll
Let's say you have an employee who starts on January 1. In 2025, this would effectively mean that the first day at work would be January 2, as January 1 is (for most people) a day off. If you use January 2 as the employee date, this would (probably) work just fine in your HR system, but in payroll This could cause challenges. Partial savings will be incorrect, information for the A-melding will be incorrect, pension reporting will be incorrect, and you will simply end up with different information in your two systems.
But does it matter then?
Yes. It does.
payroll as a starting point for HR -processes
Let's say you are considering giving an employee a pay raise. If you have payroll in a system and HR in another system, it is not certain that the salary you are based on is up to date. We are sure that the salary registered in the salary system is correct, but are you sure that the salary you are based on, in HR -system is up to date? If payroll and HR are in the same system, you can be absolutely sure that this is correct, because you use payroll to clean HR data . This way, payroll updated, and will always be correct input into your HR processes.
Surprise…
We have witnessed on several occasions that HR get a surprise when they wash their data against payroll They have thought they have good control and good data, but when HR -the data has been washed against payroll have shown major discrepancies. And it is now the case that data from payroll is correct, because it cannot be wrong.
Do you have payroll and HR in the same system you ensure that HR is precisely (and embarrassingly) correct. Data relevant to HR will be 100% correct!
Fixed additions
Another example of the advantage of having payroll and HR in the same system, are fixed additions. In a HR system, you should have an overview of who has which fixed allowances, while in payroll will pay this out. If you have everything in one system, you have full control – at all times.
And have you thought about this with retirement?
Pensions are not always just defined contribution pensions. There are many companies out there (maybe yours?) that have closed defined benefit pensions, or supplementary pensions in some form. This needs to be well documented in your payroll system, but if you don't have the right information from HR, you could be in trouble.
The list of why it is an advantage to have payroll and HR overall is long. If you want to know more, you are more than welcome to contact us.
