A high functioning payroll process and effective human resources (HR) services are incredibly important in ensuring the successful running of your business. Processing payroll enables your staff to get paid accurately and on time, whereas HR helps monitor employee behaviour and can help iron out any differences. But did you know that the relationship between the two is important? Although they are separate attributes, payroll can actually fall into the category of HR rather than finances, although this is often disputed. No matter whether your business is local or global, payroll and HR are essential.
In order to help your payroll processing and HR functions work cohesively, it is better to have them provided by the same entity. Here at Payroll Worldwide, we are an experienced and full comprehensive HR and payroll service company, providing services to Latin America and those wishing to expand to the region. Want to learn more about this special relationship? Read on below.
Why Is the Relationship So Important?
Payroll manages tasks such as calculating taxes and paying employees, whereas HR manages processes related to these tasks, such as salary increases and bonuses. These connections prove just how similar the HR and payroll processes are. If the relationship between the two is working well, then the processes that work in such close proximity to each other will work well too. If payroll is just situated in the finance sector, it may be difficult for the HR department to access valuable data, such as whether policies are working accordingly.
Both payroll and HR access confidential information about employees, and they make private decisions about pay and benefits. With GDPR being so incredibly important in business, both departments need to work closely together to protect company interests. You need to ensure that all processes are working together and in an optimal fashion. There are ways to achieve this which, when followed, can help your business work more efficiently…
Defining the Separation of Responsibilities
The scope of responsibilities at some businesses for payroll and HR can be quite blurred and difficult to understand. Putting in place clear roles for each department can improve essential compliance, as well as assigning accountability. As your payroll and HR departments work together, you can meet the standards of the modern workplace, maximizing your strategies and their impact.
In order to ensure you hit the standard of a global payroll and HR level, and to work collaboratively, you could consider creating plans and maps to keep things clear. This way, each person within the department can agree upon a set strategy, and where the points of action need to be. This can keep aspects such as confidentiality at the forefront of your business’s priorities.
Understanding Data Integrity
When complications arise within the workplace, HR is often the first port of call to extinguish the fire. All collections of employee data are then, more often than not, passed onto the payroll department. This game of whispers can often lead to data being mishandled, which puts you at risk of a data breach. Data breaches can be incredibly detrimental to your business, so to improve your data integrity, the payroll and HR departments need to work together.
The first step to take is to set standards concerning how data should be managed, allowing for more consistent data processes that are high quality too. Being one unified HR and payroll system can benefit your business greatly and be implemented at various points in your employee life cycle. If you would like to find out more about how we can integrate your payroll and HR processes, please visit our service page here.
How We Can Help
Here at Payroll Worldwide, we provide expert, global payroll and HR services to businesses of all sizes. Hiring a professional employer organisation (PEO) to handle your HR and payroll can make your business processes more streamlined, keeping everything in one place and helping systems work cohesively together. Payroll, taxes and even recruitment can all be managed by an experienced PEO, helping your business reach its full potential.
To find out more, or to receive a free consultation from our payroll experts, please give us a call on 07469 892524. Alternatively, you can fill out our online form here.