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Why Companies Must Integrate Payroll Software With Their HRMS!

June 19, 2022
Integrate Payroll softwares

Technology adoption is at an all-time high these days. HR tech, in particular, has gained commendable prominence- not just in metros but also in smaller cities.

Regardless of the size and type, companies across India are using one or another automated HR solution today.

Payroll Software

This digital shift is certainly because of user-friendliness, improved user engagement, and, most importantly, the integration facility such systems bring to the table.

Now, we have a question for you: is your payroll software integrated with HRMS? If you said NO, we want to tell you that you are missing a host of benefits.

In this blog, we will tell you why you should integrate your payroll software with your HRMS at the earliest.

Let’s start digging!

Why Is It Necessary To Integrate Payroll To Hrms?

It is a well-known fact that traditional payroll management requires a large chunk of time. As a result, HR managers are usually found juggling with piles of papers. Fortunately, things are changing lately. Businesses, be it small or large, have been embracing payroll automation by integrating it with HRMS.

Do you know the result of integrating payroll into HRMS?

integrating payroll to HRMS

Seamless integration of a large pool of payroll data is the biggest advantage you can acquire by doing so. This will certainly reduce the manual work of adding new hires to payroll, updating payroll details of existing employees, and much more.

The Significance of HRMS and Payroll Integration

Now, let us tell you the importance of HRMS and payroll integration:

HRMS and Payroll Integration

Compiled Data

In a traditional workplace, HR professionals scroll down a host of spreadsheets to ensure accuracy while payroll processing. This is when integration comes into the picture!

Integration unifies both solutions, thereby syncing all scattered data in one place. As a result, HR managers will no longer have to switch between different systems while processing payroll.

Now, less human intervention eventually means less chances of errors.

No Compliance Issues

We all know that every business is bound to comply with a number of laws and regulations. Out of all, this task is easier said than done. HR managers always have to be on their toes, as missing a legal requirement can result in huge losses.

By integrating payroll software with HRMS, both systems can communicate more efficiently to HR professionals when they are at risk of being non-compliant. This can prevent costly and unnecessary fines.

Error-Free Reporting

 integrating payroll

For reporting, HR managers are expected to gather a variety of data. If done manually, this task can be extremely time-consuming and tedious. The best solution to this challenge is integrating payroll software and HRMS.

The integration allows HR executives to make customized reports and gather all the necessary data in no time, freeing them for other crucial operations.

Empower Employees

Integrated solutions with employee self service or ESS features also empower employees to a greater extent.

It aids employees in viewing several important things such as salary slips, leaves balances, goals, and much more.

When employees have the autonomy to do tasks without having to disturb anyone, it will ultimately increase overall engagement and efficiency.

Enhance Transparency

Integrated systems also foster transparency and better communication in the workplace.

Say, for instance, if an employee makes edits to any of his/her data, HR managers can track the same without putting in much effort. This, in turn, prevents confusion and fraud in the longer run.

Top 5 Reasons You Should Integrate Payroll With HRMS

Still not convinced to integrate payroll software into your HRMS?

Take a look at the top five reasons why your payroll and HRMS need to be integrated today:

integrate payroll software

Single Data Entry

As we already mentioned before, no HR likes to go through various systems and enter multiple data. It is not just complicated but very boring.

Needless to say, integrated systems completely cut down manual data entry. All HRs need to do is give necessary commands, and the software fetches required data from the database.

Reduced Paperwork

Another good reason to integrate payroll software into HRMS is ZERO paperwork. With integrated systems, companies can eliminate the use of paperwork.

payroll software to HRMS

Since such systems store every trivial data in a single database, there will be no need for documenting payroll details in files/folders. So, yes, integration is also an eco-friendly step as well.

Improved Reporting

Analytics has been the talk of the town lately. Moreover, it is said that the significance of analytics will increase in the coming years. In such a scenario, the focus of every business should be effective data management to acquire better insights.

Without a doubt, integration is a great step for effectively managing payroll data.

Saving Time With Smoother Teamwork

Although payroll software is managed mostly by HR professionals, every individual gets involved in the process in different ways. With different systems, it is difficult to involve everyone and, at the same time, ensure safety.

Fortunately, integrated systems give everyone the required access, that too without any security concerns along the way.

Simplified Remote Working

Integrated systems are nothing less than a blessing while working remotely. Since such systems allow HRs to store and manage data in one place, they can get their hands on anything, anywhere.

Simplified Remote Working

That means no need to call people or request to share files, and waste time waiting for the same. Just a few clicks and HRs can get any, every information!

Final Thoughts

So, gone are the days when HR managers had no other option but to invest their precious time in paperwork or different systems.

Today, companies have the option to integrate payroll software with HRMS and make things super easy for their HR teams.

What are you waiting for then? Integrate payroll software to HRMS and say goodbye to all the manual challenges you face right now!


In which category of the software does the payroll application fit?

You often hear professionals saying that payroll is a part of accounting, but it is also considered to be related to HR lately. According to us, payroll applications fall under human resources solutions.

What is payroll software?

Payroll software is an automated solution used by businesses to streamline and simplify their day-to-day routine human resources operations. It empowers HR professionals to carry out cumbersome tasks in just a few clicks. Unlike outdated tools/systems, payroll software leaves no room for human mistakes.

Payroll system is an example of which software?

Without a doubt, payroll systems are an excellent example of specific purpose software. This is certainly because such systems are specifically designed to manage, compute, and process payroll.

Alpesh Vaghasiya

Alpesh Vaghasiya

The founder & CEO of Ultimate Business Systems Pvt. Ltd. (UBS), I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally. The core mission of UBS is Connecting people, Optimizing the process, Enhancing performance.

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