The upside of integrated HR and payroll systems

The upside of integrated HR and payroll systems
14 Dec 2017

Digital technology has revolutionised almost every aspect of our lives, but when arriving at work, the difference between the tools we use in our personal and professional lives can be stark. Although organisations may be investing in everything from artificial intelligence to the Internet of Things in order to boost customer service or increase operational efficiency, all too few choose to spend money on effective HR and payroll systems.

Recent research entitled the ADP Workforce View in Europe 2017 revealed that about 30% of employees across Europe are regularly frustrated by having to use slow technology.

Just under a quarter said their workplace systems are outdated, while 27% believe their employer needs to invest in more specialised software.

A second report called Human Capital Trends 2016 by management consultancy Deloitte also found that even though nearly three quarters of employers consider it a priority to digitise their HR and payroll functions, only 38% are actively thinking about how to do so and a mere 9% have done it.

But the problem with using applications that have not been integrated or are difficult to exploit is that HR and payroll professionals have to constantly move between different incompatible systems. This situation is inefficient, wastes time and makes it difficult to track and report on what is happening.

Employees, on the other hand, have no access to, or control over, their own personal data. As a result, if they have queries about their pay or benefits, it is necessary to contact the HR or payroll department for information, which is equally inefficient.

Integrated application suite

But should they decide to go down the integrated application suite route, employers do need to evaluate the entire employee journey from start to finish and use design thinking to understand how to manage this journey in the most effective way possible. They must also ensure that technology is embedded into their processes and ways of working from the outset or the danger is that employees will simply bypass the new system and find workarounds.

Another consideration, given that many staff members manage key areas of their life and work using a smartphone these days, is to ensure that HR and payroll systems support mobile devices and can provide timely notifications based on realtime data. To illustrate the point, a recent ADP study, showed that, while 37% of employees look at their pay information via their ‘phone today, a mere 23% do so using their desktop PC.

So, while no one would claim that technology is a silver bullet that can solve all of an organisation’s people problems, what is clear is that it can help.

 

David Woodward is ADP’s vice president of product development for Europe, the Middle East and Africa. Prior to this role, he worked for a number of international organisations within the human capital management space, most recently as chief product officer at SD Worx UK.

Digital technology has revolutionised almost every aspect of our lives, but when arriving at work, the difference between the tools we use in our personal and professional lives can be stark. Although organisations may be investing in everything from artificial intelligence to the Internet of Things in order to boost customer service or increase operational efficiency, all too few choose to spend money on effective HR and payroll systems.

Recent research entitled the ADP Workforce View in Europe 2017 revealed that about 30% of employees across Europe are regularly frustrated by having to use slow technology.

Just under a quarter said their workplace systems are outdated, while 27% believe their employer needs to invest in more specialised software.

A second report called Human Capital Trends 2016 by management consultancy Deloitte also found that even though nearly three quarters of employers consider it a priority to digitise their HR and payroll functions, only 38% are actively thinking about how to do so and a mere 9% have done it.

But the problem with using applications that have not been integrated or are difficult to exploit is that HR and payroll professionals have to constantly move between different incompatible systems. This situation is inefficient, wastes time and makes it difficult to track and report on what is happening.

Employees, on the other hand, have no access to, or control over, their own personal data. As a result, if they have queries about their pay or benefits, it is necessary to contact the HR or payroll department for information, which is equally inefficient.

Integrated application suite

But should they decide to go down the integrated application suite route, employers do need to evaluate the entire employee journey from start to finish and use design thinking to understand how to manage this journey in the most effective way possible. They must also ensure that technology is embedded into their processes and ways of working from the outset or the danger is that employees will simply bypass the new system and find workarounds.

Another consideration, given that many staff members manage key areas of their life and work using a smartphone these days, is to ensure that HR and payroll systems support mobile devices and can provide timely notifications based on realtime data. To illustrate the point, a recent ADP study, showed that, while 37% of employees look at their pay information via their ‘phone today, a mere 23% do so using their desktop PC.

So, while no one would claim that technology is a silver bullet that can solve all of an organisation’s people problems, what is clear is that it can help.

 

David Woodward is ADP’s vice president of product development for Europe, the Middle East and Africa. Prior to this role, he worked for a number of international organisations within the human capital management space, most recently as chief product officer at SD Worx UK.