Global payroll and HCM Integration – now is the time

September 15, 2021 | David Daly 5 Mins read

It is still the case today at many multinational companies around the world that global payroll systems and HR technology including HCM systems are not integrated for smooth payroll data sharing.

There are a number of reasons for this-usually it is a case that they are different technology stacks purchased at different times, and they were designed to fulfill different purposes. Sometimes it is the case that the HR department received significant investment after a business case for digital transformation-this resulted in their technology developments moving at a faster pace than global payroll. And some companies simply have their key service delivery departments operating in silos as that has simply always been the way things have been done there.

Today, due to the complexity of multi country global payroll and the challenges involved in payroll processing across several countries and continents-there is a growing recognition of an urgent need for human resources technology stacks and global payroll platforms to be interconnected for efficient data sharing.

Payroll and HR will always have a need for each other and those companies who adopt platform integrations for two-way data sharing between these crucial departments are ahead of the curve when it comes to improving processes at both the human resource is department and the global payroll function. In this article, we will look at the reasons why HCM and payroll should be integrated and how both departments benefit from such an integration.

Necessary connections

The first reason why this is a good idea is that it is simply necessary! The complexity and challenges of modern-day payroll delivery mean that this is no longer a nice to have-it has become essential to have a global payroll solution that is connected to hr systems.

Data sharing between these two business critical departments is vital for accurate and on time global payroll processing. At the majority of multinational companies today, important data for HR functions is held inside payroll systems and vice versa. The global payroll team will always need some information that is likely to be held in a human capital management (HCM) system- important employee data such as new joiner information, leavers information, compensation and benefits information can exist in a HCM system but may be missing from a global payroll technology stack.

The ideal scenario is an integration between the two departments that enables smooth, efficient and fast data flows select both departments so they have full access to the data they need to deliver business critical services to the overall organization.

Process improvement

Can a multinational company live without I HCM integration with payroll?  They can, but that does not make it a good idea and it ignores the many and obvious advantages that come when interconnected departments operate with connected technology stacks.

Companies can choose to manage their global payroll process in the siloed, legacy way of the past. This would mean a continuation of daily processes that rely heavily on manual inputs, spreadsheets and email transfers. This process is slow, cumbersome and subject to error-it is also widely known now that it is also somewhat demoralizing for the professionals who carry the burden. They deserve a better operating model for the delivery of such a business-critical service.

Integrating your HCM system with your global payroll technology stack would represent a significant process improvement with far reaching benefits. Things would immediately become faster, smoother and more efficient. Accuracy would improve as the likelihood of human error is reduced if crucial data flows are automated via a HCM integration with payroll.

An integration would also free up time for global payroll professionals to focus on high value work such as reporting and data analysis on international payroll. So much of their valuable time is taken up with manual inputs and transferring data via email and spreadsheet that they have little time to dedicate to analysis.  A HCM integration results in process improvement across both departments.

Visibility and control

When two connected departments operate in silos, there is no clear understanding of how they interact with each other. There is no natural and obvious way to share data and introduce greater efficiency. Each department is flying blind and somewhat unaware of what is happening in the other department- the connections between HR and global payroll are so obvious that it does not make sense for these departments to operate so independently of each other, certainly not from a data sharing point of view.

Compliance control is a key concern among global employers and to achieve full compliance on a local country and global level, both HR and global payroll operations need to be able to share and account for important employee data. Without visibility, there can be no management and control. A HCM integration with payroll would ensure better access to data and the same end-user experience for payroll professionals across all countries-making global payroll compliance activity easier to view, manage and control.

Employee engagement

Integrating a HCM system with global payroll is also a win for employees. Anything that helps protect and safeguard the ability of an organization to pay their global workforce accurately and on time every pay period is a positive, But integration also offers more than just that.

The integration also lays the foundation for better employee access to their personal and payroll data. Many HR and global payroll professionals have to deal with data inquiries from employees. If the data that the employees need is held in two separate systems then you are left with the unsatisfactory situation where an employee needs to approach two different departments for the data, not the best employee experience. This is slow, time-consuming and inefficient-it also fails to meet employee expectations who in many areas of their personal lives have instant digital access to the information they need and tend to wonder out loud why they can’t have the same functionality and experience at the company they work for.

And integration makes it easier to supply employees with the data they need-it can also lay the foundation for future self-service access for employees, which is an even better user experience. When you make it easy for employees to access the data that they want, you boost engagement and satisfaction rates while simultaneously reducing the administrative burden on the professionals in both HR and global payroll.

Payslip and HCM

The Payslip global payroll control platform comes with a number of pre-built integrations for major HCM platforms like Workday and SuccessFactors.  Our integrations philosophy is to connect people, process, hr data, vendors and technology in a way that empowers your global payroll team and helps your leaders identify & seize growth opportunities.

Our pre-built integrations help global companies to establish a unified model where HR systems and global payroll work in a unified process with secure data & document storage and sharing. They also cut out manual processes by seamlessly integrating and sharing employee information and data to payroll systems. Companies benefit from ecosystem power i.e., a fully integrated HCM and payroll system which can also be connected to the broader external business ecosystem, removing the need for an expensive and time-consuming “rip and replace” project.

Payslip’s pre-built HCM integrations as well as our ability to integrate with any HCM helps to drive new levels of efficiency both within payroll processing and human resources service delivery. To learn more about the integration capabilities available on our global payroll control platform, talk to our team today.


For information on the Payslip Platform contact us today.

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Colin Smith

Payroll Manager, LogMeIn

Payslip as a technology platform has added a missing piece in our payroll set-up. As an international company with offices in 16 countries, it’s important to us that every employee at GetYourGuide has the same great experience when accessing their pay data.

At the same time, we work well with smaller local payroll providers, supporting us with direct local expertise in their countries. We were able to combine those two elements by placing the Payslip platform in the middle, to simplify reporting and communication with local providers, and to have one simple employee-facing solution across all locations.

Julian Fichter

Head of HR, GetYourGuide

With business and employee growth rates of above 50%, we rely on our vendors to deliver on time, every time. Payslip’s workflow automation, enables Phorest to manage our payroll provider process – data driven, real time and transparent. Payslip saves us time so we can focus on our business growth.

Ana Kelly

International Payroll Manager, Phorest

Payslip positions your team for success, and allows you to onboard hundreds of people when you need them very quickly and efficiently, in the same way for each country. The uniformed approach empowered our payroll teams to keep pace with our business.

Payslip also made our payroll process entirely transparent, which is invaluable to our payroll teams as we continue to grow and scale at such a rapid pace.

Travis Saville

HR Systems Lead, Wave