For companies looking to transform their global workforce strategy
through analytics, or improve process efficiency with automation,
managing multiple HR data systems can be an impediment to success. In
fact, the need for a single system of HR data is the top reason
companies are deploying HRIS technology.
Unfortunately, most international HRIS systems don’t include payroll
—and its data— from everywhere in the world, making it impossible for
companies to achieve a true master system of record for workforce data.
Because of the limitations of HRIS or HCM technology, multinational
companies are turning to global payroll and HRIS integration to unify
HR data and processes around the world and gain the strategic
business advantage of global workforce reporting.
But global HR integration is a costly and complex undertaking. How can
you ensure a successful integration which delivers the most ROI?
Let’s take a look at the benefits of integrating global payroll with your
HRIS, the costs and risks you may encounter during implementation ,
and best practices you can apply to streamline the process and increase
ROI.
How HRIS integration with global payroll can benefit your company
Before embarking on any HR transformation project, it’s important to fully
understand why your company should make the investment.
One of the most critical benefits of integrating global payroll with your
HRIS is providing leadership with unprecedented transparency to global
workforce data. With 70% of business leaders getting their data from
multiple unconnected sources, a global view of data is a clear strategic advantage.
Additionally, global payroll and HRIS integration can help your company:
- Ensure compliance with a single source of employee data
- Increase ROI through better user adoption
- Reduce inefficiency by streamlining global processes
- Save time by minimizing repetitive data entry
Challenges to consider when implementing payroll with your international HRIS system
Unforeseen roadblocks or complications are inevitable with any global-scale project. These are some of the risks or barriers to success you should be aware of when integrating global payroll with your HRIS.
Lack of resources
Because global-scale technology integrations are extremely complex, many companies struggle to secure the resources, like time, labor and
budget, that are required to fully develop the project.
Change management
The importance of change management throughout HRIS and global payroll
integration is often underestimated. These projects are more likely to fail when companies neglect to communicate how the integration will impact employees’ day-to-day work.
Data conversion and reconciliation
Companies that are processing payroll through a local entity or outsourcing
with a local provider typically have inconsistent, dirty data that requires
conversion prior to implementation, especially if in-country payroll functions
are operating independently and not pulling data from the HRIS.
Local data reconciliation requires mapping or translating employee data
from the HRIS to in-country payroll processors and can become a barrier to
success if not handled correctly.
Country-level data requirements
Most HRIS platforms do not contain all the data fields required for processing in-country payroll and reporting tax filings. These data discrepancies between HRIS and payroll often require configurations or country-specific integrations, which are time-consuming and costly to set up and maintain.
Best practices for a successful HRIS integration
With so many possible complications, it’s critical to plan a roadmap for
success. Here are some best practices to help you streamline the
integration process and generate the most ROI.
Conduct a fit-gap analysis
The goal is to improve resource management.
Before starting the implementation process, it’s helpful to perform a
fit-gap analysis so you can clearly identify where your HRIS
integration will live within your business and where change impacts will
be felt. Knowing these details upfront will help your team build a
roadmap for implementation and align on how to best leverage
resources, like budget or consulting.
Get ahead of change management
The goal is to anticipate what the implementation could mean for workers
and achieve better user adoption post-implementation.
Ultimately, your HRIS integration project is about people, not systems, so to
get ahead of change management, you’ll need to focus on the people involved in
and impacted by the project.
Communicate early and often with key stakeholders and ensure they understand
the benefits of an HRIS integration. HR, operations, payroll, and finance
leadership teams can get involved and personally invested in the project by
defining guiding principles and making decisions related to areas like
workflow, security or reporting.
To ensure better user adoption post-implementation, leadership teams
need to demonstrate their commitment to the project and keep employees
informed about how it will impact their day-to-day work.
Enlist the help of experts
The goal is to minimize the internal resource load and ensure a successful implementation.
Large-scale integration projects involving many different countries can be
overwhelming for an internal team to handle alone. Even team members that
are well-experienced with your international HRIS system will need
support when it comes to handling the complexities of global payroll.
Achieving a successful implementation, one that meets goals and expectations will likely require the expertise of a payroll systems integrator. These experts can advise and review the implementation process and provide your company with solutions for design, testing and deployment.
Simplify configurations
The goal is to streamline your integration and ensure a predictable and
measured implementation timeline.
Whenever possible, limit the amount of time spent on regional or
business-specific customizations during the integration process. These
configurations are complex and time-consuming and will require more resources
to maintain in the long-term.
When regional customizations are unavoidable, involve stakeholders in
defining the criteria that will guide process set-up.
The most efficient way to simplify configurations and streamline HRIS
integration is to work with a global payroll provider that offers pre-built or country-specific integrations. This unique service alleviates the burden of building
custom integrations for local payroll and is typically offered by providers that have a strong and established partnership with your HRIS.
Want to learn more about how your company can streamline HRIS integration
and generate the most ROI from its investment? Contact us today to schedule a free
consultation with a global payroll expert who can help you further explore the
benefits of global payroll integration.
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