Payroll and HR solution integration has historically been a challenging process, but the nature of the relationships between these systems is changing due to the emergence of cloud technology with open API’s. In days of old, the most common and efficient way for Payroll and HR solutions to communicate was via clunky csv manual updates. Now it's possible to take that to the next level and fully integrate two (or more) solutions, making work easier, more efficient, more cost effective than ever.
Interface Versus Integration
If you're in the market for creating an ecosystem using your current Payroll solution and a new Core-HR or e-Recruitment solution, there are a few things you will need to be aware of. To make sure that you create the most efficient systems solution possible, knowing the difference between an interface and an integration will be helpful.
Both terms refer to the interaction between two systems, but there are differences and it’s important that you understand them. An interface usually requires work on your part and data exchange does not happen in real time. Integration, however, is automatic and requires no further work on your end once it's been ste up. Both options provide the capability to eliminate time consuming, error-laden double entries, but because integration generally means less work you should select systems that integrate whenever possible.
Payroll Integration Past
Historically, Payroll integration has been a challenging area because the architecture of many Payoll solutions was somewhat inflexible, making full integration difficult (or impossible), meaning an interface was the only option. Payroll providers have also been a little slower in transitioning to the latest delivery options (like Cloud based, SaaS), making it difficult and costly for organisations using legacy Payroll solutions to catch up with the latest trends. Technology innovation and trends invariably make life easier and more efficient than in the past, but there has been a lag in the uptake on the Payroll front.
Payroll Integration Future
In some ways, the strong adoption of other Cloud based SaaS solutions (particularly for Recruitment and Core HR processes), forced the hand of Payroll providers and precipitated a quiet revolution. Now, several Payroll and Accounting solution providers have either transitioned to the cloud, or simply started there, and they've done this with a more flexible and open approach to the sharing of information. This means a whole new world of possibilities open up for users, because it now they have the potential to create IT ecosystems that harness the benefits of more open Cloud solutions. Such ecosystems make it possible for all the systems being used within an organisation to talk to each other and share data seamlessly.
The Importance of Integration Vs Interface
In the past when integrating Payroll wth other HR solutions, you would probably have been working with interfaces far more often than with truly integrated software applications. While an interface may not be the perfect solution, it has historically offered the easiest method of eliminating some of the time consuming double entry.
Now, and onwards into the future, Integration is always the best-case scenario, and thanks to the Cloud, is rapidly becoming the industry benchmark. An integrated HR software solution requires no work (once the integration is set up) and changes happen in real time; as the two systems share the same database. So you only have to add or update data once.
How To Make Sure You Reap The Rewards
Choosing the right suite of solutions can be a challenging process, especially when it comes to Payroll integration because your Payroll solution is often the one around which everything else needs to function. Knowing how to make sure the potential HR solutions you're looking at will integrate with each other with ease (and without needing a developer to make it work), is an essential key to your success.
Feedback is also a powerful experience for inspiring improvement and innovation. After we posted the Human Era Survey Results last week, we received a really great comment about solution implementation and integration, and it really got me thinking about how we can make the pointy end of these processes even easier for users. The comment that started the ball rolling was this:
"One thing that has remained a common problem irrespective of cloud or premise based technology is the use of spreadsheets to to download and upload data. The truth is that unfortunately most systems require painful set up of data in a structured format. The data available in today's organisations is unstructured and across multiple systems. This means that vendors have to become smarter at reducing the pain of data migration, structuring, manipulation, etc. for easier, faster implementations that encourage clients to want to migrate and use newer systems."
We have a solution to do exactly what is suggested in the comment - that is, to get smarter at reducing the pain of data migration (and all that entails). Subscribe-HR's solutions already offer seamless integration with some of the most popular Payroll solutions in the market: Netsuite Infinet Cloud, MYOB, Xero, MicroPay, Attaché, chris21, Aurion, Navision and more. It might take a moment for us to formulate an enhancement that reduces data integration pain even more, but it's something we're committed to providing to our clients to make their lives better, happier, more productive.
In the meantime, if you would like to learn more about how to increase your knowledge about Payroll integration and enhance your decision making power, we've created a free e-Guide for you: How To Make The Most of The HR and Payroll Integration Revolution.
