How to eliminate payroll errors with HR integration

In a bid to vanquish inflation, the Bank of England is keeping interest rates higher for longer – terrible news for those families grappling with the cost-of-living crisis.

Undoubtedly, this places pressure on business owners, HR teams and payroll professionals to ensure payday goes off without a hitch.

However, according to the Society for Human Resource Management (SHRM), over a third of employees have had to chase their employer for their pay at least once.

A scary statistic when you consider that the same survey from SHRM found that 35% of employees would leave their current job if paid incorrectly – a recipe for disaster.

So, with the current economic challenges, morally you can't allow payroll errors, but also practically, as due to the talent crisis, you can't risk losing people over silly mistakes.

What typically causes payroll errors?

Perhaps the most common is human error, which is catalysed by outdated software or, in some cases, a complete lack of software.

Inaccurate data entry can lead to wages being incorrectly determined, miscalculations can occur during complex calculations and errors in timesheets can confuse the entire process.

Human errors will also increase if there’s a lack of proper procedure around handling pay modifiers such as overtime, or quite simply, there’s been inadequate training on systems and how to process payroll.

The next biggest cause of payroll errors is a disconnect between HR and payroll.

Disconnected systems waste time, risk mistakes when re-typing data and pose security/GDPR issues if you start moving information about in spreadsheets and emails.

The solution: good, integrated software

Ultimately, reliable software makes up the bare bones of a solid and efficient payroll process.

Having software which offers automation and workflows will save you a great deal of time as well as help safeguard against basic human error.

But it’s only the first step.

To truly safeguard your payroll, integration with HR is vital.                       

HR and payroll integration

For example, if an employee’s records change – perhaps they’ve moved address or altered the number of hours they work – it needs to be instantly reflected in the payroll system.

Otherwise, the likelihood of being paid incorrectly is incredibly high.

By integrating HR and payroll software, you eliminate the need for duplication and manual intervention.

If maternity is registered in the HR software, it becomes maternity pay in payroll.

If an employee is entitled to overtime pay, they can add hours in the HR software, which goes to approval to the line manager, the HR system then calculates the rate of pay and is then pushed into the payroll platform to be processed.

If an employee submits any expenses with receipts via the self-service app, it then goes to approval with the line manager and automatically flows into the payroll software.

Add to this that compliance is also improved as you can abide by employment law and regulations far easier with HR and payroll integration.

Taking us back full circle to the start of this blog, lastly and perhaps the most important benefit is improving the employee experience.

Not only do staff get a single source of truth for all their payroll documentation, but once payroll has been processed, the payslips are sent back to the HR system for the employees to view and keep a record of + you can ensure they’re paid correctly and on time, every time.

How to integrate HR and payroll

To get your HR and payroll integrated, you need software which features an Application Programming Interface (API), such as IRIS Staffology.

An API is essentially a set of definitions and protocols within the software, allowing applications to talk to each other.

Bearing in mind the importance of connectivity, when building IRIS Staffology HR and IRIS Staffology Payroll (which seamlessly connect together BTW), we ensured they also play well with non-IRIS products.

Laura Curran, Product Marketing Business Partner at IRIS, explains: “We don't tie you to the rest of the IRIS ecosystem. For example, with Staffology Payroll you can integrate with leading time and attendance providers to make paying your staff the correct amount, easy.

"We have pre-built connectors with key providers like Square, Deputy, and many others.

“But if we don't have a pre-built connector, you can utilise our API to integrate with the products that matter most to your business.”