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.
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 up front 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 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.
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.