Harmonizing Global Payroll Operations

May 11, 2022 | 5 Mins David Daly

Last week, we ran our fourth webinar of 2022-the topic was on key steps to effectively harmonize global payroll operations when you are attempting to deliver and manage multicountry payroll inside a rapidly growing organization. You can view a recording here.

Integrating your HR tech or HCM system with your global payroll software or process goes a long way to achieving this level of harmonization within your multi country payroll. Mary Holland (CPP), CCO chaired this fireside chat webinar and was joined by 2 integration specialists from Payslip, our Global Implementation Manager, Gergana Kazanlieva and our HCM Integrations Lead Engineer, Katya Parvanova.  Below are some of the highlights and key learnings from an informative webinar.

31% of attendees are planning a HCM integration project this year

This result from one of our webinar poll questions really highlights the fact that HCM integrations are now becoming prioritized at multinational companies around the world. It seems the realization has really set in that global payroll cannot operate in isolation and powerful data connections are needed to ensure strong and accurate data flows between global payroll software and the HCM.

This is good news as it is a win for both the HR department and the global payroll department, and we were not surprised to learn that more and more companies are now focusing their attention on crucial HCM and payroll integrations.

“Integrating payroll management and the HCM is key to being a strategic and influential contributor to your organization while helping the organization function in a better way”

Mary Holland (CPP), CCO, Payslip

Advances in HR technology have empowered payroll managers and HR to work as a single system, so the opportunity to integrate these two crucial functions exists and the more innovative organizations are beginning to look at ways to digitally connect these two technology platforms. It makes business sense as it helps to improve visibility and control around data in both departments and also drives better operational efficiency for both the global payroll and HR process.

Integrations help deliver bigger picture insights

When payroll and HR operate separately, the data flows are disconnected and there is very little ability to get the kind of bigger picture insights needed for strategic decision making. Essentially, without systems integrations, these two departments operate in silos-this is not productive or efficient as both of them require data flows for full clarity and transparency.

Some data needed to process payroll could be inside a HCM system and conversely, some human resources data needed for reporting or analysis could be inside a payroll software system. So, integrating the two systems would lead to payroll harmony and HR data insights.

These insights could then be used by both departments as a way of demonstrating how their processes and people can help deliver strategic insights and business intelligence over and above their day-to-day core duties. This helps to both align these departments to the overall company goals and also serves to empower the employees and professionals who work in these departments. Manual work is greatly reduced or entirely eliminated, and the professionals can be proactive, catching errors or anomalies before they happen. It is an altogether more efficient and productive way for two business critical service delivery departments to work together.

Successful HCM integrations

The second part of the webinar involved an informal chat with our integration experts here at Payslip who talked about what a successful HCM integration could look like and advised on some best practice. Katya strongly recommended dedicating a generous amount of time to testing and analysis at the start of the process as this really is the best way to weed out any problems before they become a blocker to progress and slow momentum.

“The clients guide us on the structure of the data, and we work with the solution architects here at Payslip to build the integration solution that best meets the client needs”

Katya Parvanova, HCM Integrations Lead Engineer

Gergana talked about the importance of having a fully engaged and organized team of relevant stakeholders. She really values the expertise of the client-side input and then taking this information into conversations with the expertise on the Payslip side. The transparent flow and full understanding of all of the key components and relevant information really ensures that everybody is on the same page right from the start of the project and understands what the goals and outcomes should be of the integration project.

“Having a clear implementation plan that all stakeholders have contributed to and can follow consistently really helps to create a smoother working process for both parties”

Gergana Kazanlieva. Global Implementation Manager

Time management and commitment were also spoken of- the reality of current day global payroll and human resource administration work is that professionals from either team will never be able to commit 100% of their time to an integration project. Instead, they will have to find a way to fit this crucial project work into their daily and weekly deliverables-that is why Gergana and Katya stressed the importance of preparation and understanding the timings and workloads involved-it is all very achievable with a clear and agreed upon implementation plan that is backed up by support and commitment, but both stressed the need not to underestimate what this commitment involves. The rewards are always worth it but consistent commitment levels are required to maintain the necessary momentum to deliver the integration project on time and on budget.

The benefits of a HCM integration- reasons to do it

HCM integrations can introduce major productivity and efficiency gains when delivering and managing multi-country global payroll, so it is no surprise to see many companies undertaking integration projects for better connected data flows between HR and global payroll. On the webinar, we discussed a few of the key benefits associated with introducing these game changing integrations:

    • faster multi-country payroll processing times
    • reduced costs associated with payroll delivery
    • hugely reduced reliance on manual inputs and spreadsheets
    • improved data accuracy and integrity for stronger payroll compliance
    • facilitates data and process standardization for payroll delivery
    • a better way to manage global payroll resources
    • drives execution excellence in payroll delivery across multiple countries

Reporting and ability to define the single source of truth were also mentioned as key drivers or reasons for undertaking an integration project. Some payroll related data will be inside a HCM system and conversely, some HR system data will be contained in payroll software. This is an unsatisfactory situation for two reasons: firstly, there is a requirement to manually duplicate data across systems and secondly it makes it much more difficult to decide which system is the single source of truth for the relevant data.

With fast and accurate data flows connecting the systems via an integration-then the HCM becomes the single source of truth for human resource data and the payroll software becomes the single source of truth for payroll data-this is where both departments want to be. A positive outcome of this scenario is that the right data is flowing into the right systems for reporting purposes and both departments can then benefit from accurate bigger picture insights.

Integrations can happen quickly

45% of attendees believe an integration project takes a full year

This was the result of another poll we ran during the webinar- a lot of hesitancy or blockers to progress with a HCM integration project is the perceived long amount of time it will take for it to happen. On the Payslip global payroll control platform, it can happen a lot faster than you might expect. Our implementations team have a lot of expertise with HCM integrations, and our 2 experts talked about the number of different data input sources being a significant factor in determining the length of a typical project as well as the initial planning and analysis stage.

But with the right stakeholders and resources in place on the client side, Payslip is a technology partner that can move an integrations project along quickly due to our experience and familiarity with popular HCM systems like Workday and SuccessFactors. We are familiar with the data inputs that need to be ingested and automated and our team of engineers can quickly create bi-directional data flows between HCMs and our global payroll control platform. So, if you are considering an integrations project this year, our team can talk you through some best practices as well as outline the Payslip approach to integrating HCMs with payroll- talk to us now.

For information on the Payslip Platform contact us today.

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