Hris And Payroll: Integrated Or Interfaced?

We have so often heard about human resources information systems and payroll solutions

. In fact, many of us are quite familiar with all the options we have when it comes to these kinds of software packages. Two of the most common terms associated with HRIS or payroll solutions packages are "integrated" and "interfaced". Several software vendors claim that their product is an "integrated" solution while others claim they have "interfaced" software packages. In making human resources functions automated and a lot easier, is there really a difference in selecting "integrated" or "interfaced" solutions? It can be quite helpful to find out more about this.

An integrated HRIS solution is often developed by a single vendor. It offers a single database for human resources data and payroll data. In this way, each time information on a certain employee is updated from the human resources side, payroll data on that employee is also updated. A good advantage of this kind of system is automatic update of information both on the payroll side and human resources side. However, one problem seen in this kind of system is that human resources solutions are designed to take in details on employee benefits, compensation packages, enrollment data and the like. On the other hand, payroll is more interested in deduction codes and amounts. For example, payroll looks at detailed benefit plans into a single deduction code.

Due to this, interfaced HRIS and payroll systems have been developed. These might come from two different developers or a single developer. The bottom line is HR systems use a separate database from payroll. Of course, data needs to be synchronized and to achieve this; a certain schedule is set for synchronization which can be automatic or done manually.

Any HR personnel understand that HR and payroll are two separate functions. HR functions can evolve quickly and in using an integrated system, changes in HR information can have adverse effects on the payroll side. In terms of reporting, payroll and finance are more interested in department-based data while HR is more interested in data based on training needs, position type and many others.

This does not necessarily mean you are at a disadvantage if you have an integrated HRIS and payroll system. This simply means that you must take into consideration the needs of HR employees and payroll employees before you select tools and solutions to answer their information management needs.

by: Bart Icles.

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