Why Payroll System must Collaborate with Human Resource System and Finance

The payroll system and human resource system are two main pillars in any organization’s management. They must be maintained appropriately along with finance to execute a company’s accounts and HR smoothly together. Finance ad human resource systems have several common functions and they need to collaborate closely to avoid conflicts. Same is the case between HR and payroll system which share similar grounds to handle employee data, salary classification and leave management. The gap between two sections should also be minimized for better organization of the departments to reduce costs and efficiency of resources. Instead of the obvious needs of integration between the sections, many companies cannot succeed to bring the two parts closer due to differences in cultures and thinking. There could be more issue that should be addressed to achieve collaboration of all the management sections of the company.

Distinction between professionals

The basic clash arises in separate departments due to the difference in the breeding of people working in them. Finance people are purely “number people” who can work on predefined rules and resolute limitations of accountings. They follow local and international legal regulations and organizational working policies. Whereas a human resource system holds individuals with “people people” vision, whose work is to make strategies and policies to hire resources, retain proficiency in the company and empower employees to polish their skills further. But payroll system people are destined to work on both employee related issues and accounts to estimate salaries and reimbursements. For that reason all three parts should be connected strongly to improve efficiency and lessen the overhead.

Acknowledging each other’s role

Another problem that holds people of three departments to work together is the lack of appreciation of each other’s role in the organization. Carrying out complex processes of management can be simplified with proper interaction and communication between the sections of HR, finance and payroll. The level of accuracy can be increased and average of errors can be eliminated with help of integrated efforts by professionals of related departments.

Mutual coordination

All the sides in the company management should perform their duties along with mutual coordination with other counterparts. Hard work of one section can be ruined with negligence of another department that can also negate the spirit of collaboration between them. Working in two opposite directions can create multifaceted problems that will make the management difficult for all sections.

Better integration

All the aspects of labor and payments relate directly to the payroll system, but it also includes the policies of HR and financial matter to maintain the accounts. It shows the need of closely coupled integration between the parts of the management. All systems should be technically connected to keep the data centralized and systematic. In the same way the work force of the departments should be in constant connection to handle the system proficiently. They can run the whole setup strategically for business process improvement as well as better work environmnt.