Three tips for selecting an HRMS with integrated payroll

Many organizations choose to implement an HRMS with integrated payroll as it provides benefits through the consolidation of data into one source system. As you whittle down your short list here are three tips to consider as you select an HRMS with integrated payroll.

1. Consider the background and evolution of the payroll module

As you look at an HRMS with an integrated payroll module it is helpful to consider the application’s origins. Are you considering an HRMS that has built or acquired a payroll module or a payroll system that has ventured into the HRMS world? Each scenario will have its own advantages and challenges. One of the most important areas to check is how frequently your HRMS will offer new tax updates and fixes as legislation is complex and changes regularly. At the end of the day if an employee is not paid correctly it will be remembered. Whether you choose an HRMS that does payroll or a payroll system that has crossed over into HRMS activities make sure that all of the intricate details of payroll and taxes are covered.

Recommended Reading: Find HRMS vendors offering integrated payroll modules with the HRMS vendor directory

2. Ensure the connectivity to other systems

Integration requirements are often a major part of any HRMS implementation. When you are implementing an HRMS with integrated payroll you may need to quickly implement other systems such as timekeeping, expenses or absence management. Will your new system allow for the two-way transfer of data? How easily are new interfaces created and incorporated? Are there ongoing maintenance fees to create these interfaces? HRMS payroll systems often need to talk with financial systems as your payroll data may need to feed the General Ledger (GL) in the financial system. Many HRMS will benefit from a robust method to integrate data but when you implement an HRMS with an integrated payroll the ability to interface data seamlessly will become critical.

3. Align your strategic vision to the HRMS roadmap

As you are selecting an HRMS with integrated payroll, consider your long-term plans. Are you looking to expand globally? How well will this HRMS deliver on a global payroll? Does it offer employee self-service in areas such as tax withholding and viewing paychecks? As you shortlist your HRMS vendors be sure to list and focus on payroll specific functionality. A poor payroll product can derail an implementation so be sure that payroll requirements are included at the beginning of your selection process rather than being an afterthought or add-on.

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Heather Batyski

About the author…

Heather is an experienced HRMS analyst, consultant and manager. Having worked for companies such as Deloitte, Franklin Templeton and Oracle, Heather has first-hand experience of many HRMS solutions including Peoplesoft and Workday.

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Heather Batyski