Issues in Human Resource System & Payroll System Integration

To manage a progressing business human resource and financial setup, it takes professionally well equipped human resource system in accordance with the payroll system. There is a lot of information that both systems need to share with each other to keep the data concurrent along with payment calculations and other relevant financial requirements. But the problem occurs when there are multiple entries against single employee record and it create confusions that leads to inconsistent database. Data should be entered and saved once to build a reliable database which can return optimized results. In general, human resource system and payroll system share data about employee name, employment number, employment date, date of birth, date of leaving job, employee department and designation, holiday, sickness or long term vacation data, benefits/allowances and the list goes on. It shows the need of integration between two systems to manage the business smoothly. But it takes extensive efforts and also needs you to pay some serious returns.

Diverse kind of Database

If you are using two separate database systems to manage HR and payroll and both belong to different vendors, it would be quite complex to integrate them for centralizing the whole setup. For example a SQL server database for HR and Oracle for payroll will not give you facility of accurate reporting due to diverse interfaces and privileges. Even if you transfer your data on a single source, e.g. ODBC it will also make duplicate entries because usage of two separate interfaces for entries and updates.

Security clashes

There are many expected security issues that will arise when you will try to integrate two existing systems. If you transfer files between systems, there will be no security protocol that will transfer the file with full security. In the same way you will face protection issues while delivering or receiving confidential files to outer source. That’s why maintaining two systems within a company together will result in data duplication.

Data manipulation and conversion

Combining stand alone payroll and HR solutions will also irritate while making data conversions and integrating existing records. Both systems hold distinct format of storing and displaying data, which will never allow them to merge the employee records appropriately. Payment estimations will also be devastating when extracting data from two different systems as it needs another interface solution.

Access privileges

As multiple staff members will use the two integrated systems simultaneously, it will require extra privilege control and monitoring of data. With the merger of the two systems it will require more interfaces to access, enter and update records that will need training of all the relevant employees. It will cost high amounts to the business, but gives no surety of accuracy of system flow.