There is some distinctiveness between HR & payroll functionality. Payroll controls all the payment-related issues in the organization. And HR handles all the HR issues within the organization. There are times when these two roles overlap.
In the software itself, both the functions use separate modules in order to perform the specific job. In the small business environment, both functions are also done by the same person.
This article talks about the key difference between HR & payroll software. And why you should consider investing in integrated HR & Payroll software in Bangladesh. So let’s begin
What is HR Software?
HR software is designed to assist your organization to manage the employees. It helps in simplifying all the HR management work in order to better manage employee talent and thus drive productivity in the organization.
What is Payroll Software?
Payroll software is associated with compensation-related work. It assists in calculating employee payroll by keeping in mind all the accounting elements and reduces the risk of human errors.
What are the key differences between HR and Payroll Software?
It’s clear that both functions are essential to play within the organization. The difference in which both the functions are apart are:
Sharing different skillset
HR software is people management-centric, where payroll software deals with finance-related work.
Payroll software has to adhere to all the tax law regulations and has to keep a thorough understanding of the accounting process.
But the HR software helps in streamlining management-related work such as attendance keeping, performance tracking. That in the end enhances the overall productivity of the organization.
Responsibility varies depending on the size of the Organization
Small organizations can handle payroll management systems along with employee management. As the employee number is less here so both the work can be done in ease.
But for the big organization, the case is different. There is a huge workforce. To have a steady workflow, they need to deploy an HR software system along with a payroll system.
Both solutions communicate different functionality
Payroll Software helps to mitigate errors in the payroll and reduce the amount of time & effort invested in it. This solution is so easy to manage that a non-financial person can easily do it.
On the other hand, HR software focuses on the bigger picture. To maintain a steady workforce, implementing HR software is important. It helps in tracking employee performance and reduces manual work pressure.
Both solution foster different communication model
HR software fosters faster communication between different departments. By using HR software employees can easily manage their own portal and update it according to management needs. It facilitates the collaboration between management and employees.
And payroll software facilitates financial stability that can be shared easily with the finance and account department. For accurate financial decisions, payroll software works as a bridge.
Differences in Concerns
HR software concerns about hiring the right person for the right role. And Payroll software concerns about paying the employees for the job they are doing.
One solution is concern about when a new employee starts working together or leaves. When other need to take care of the raise in the time of promotion.
How the HR and Payroll system align together
There are some connecting points between these two systems. Both the systems share common functions such as recruitment, salary, bonus, payment, leaves, benefits, and so on.
For instance, when the HR department hires a new employee, the payroll system needs to be informed. As payroll needs to be made sure all important aspects are taken care of.
When HR introduces any new salary scheme, it needs to be worked together with the payroll system. When the need of updating employee performance, both HR & payroll systems need to be worked accordingly.
If the payslip didn’t process timely, the HR department will face an issue. A delay in paycheck can impact badly between departments. That’s why the HR department needs to provide timely input to generate timely paychecks.
When an employee goes on sick leave, it’s the duty of HR & payroll to make sure transitions run smoothly at the same time on-time payment.
Error-free communication and confidential data handling can not be done smoothly if HR & Payroll don’t merge together. It is absolutely essential and must be done seamlessly.
So How the HR & Payroll Software integration happen
With so much overlapping in activities, integration of both the solutions is becoming more necessary than ever.
Nowadays there are so many companies out there keen to take more strategic solutions using their HR software.
For hassle-free workflow now HR practitioners also handle the payroll-related activity.
Using one solution can make every time-consuming process easier. There is so much software out there providing HR & payroll software solutions together. One of them is the Jibika plexus.
It is designed to provide integrated HR & payroll solutions to work seamlessly. It also helps in saving a great deal of time. Such software can be used as a backbone for each department. To ensure a highly efficient and effective workflow, such an integrated solution is much needed.
For enabling quick error-free reporting for your HR & payroll department, the integrated solution would be a great choice. Although there are differences in both of the activities. But all ends on the same objectives.
Are you thinking of providing a similar solution for your company? Contact us to know how it can work for your HR & Payroll department.
