Global Payroll and HCM System integration is more efficient and cost-effective by consolidating redundant implementation activities.
As more and more human resources services integrate into human capital management systems, it is imperative to take a look at global payroll and the benefits of consolidating international payroll within your system. Common practice has been to implement the HCM system before adding services like global payroll; however, there are several reasons why this is not considered best practice. The trend among international employers is to implement HCM systems worldwide so that they can ensure compliance globally by gaining visibility to employment activities while spreading costs. Companies seek integration between the HCM systems and payroll systems that feed data to—or gain data from—the HCM system. A major gap exists in executing this strategy because most HCM systems are not equipped with multi-country payroll rules in mind. Additionally, by aligning human resources and payroll early in the process, one can ensure alignment of policies from each department across the globe.
Both technical and operational risks exist when companies do not integrate global payroll before or with the HCM system implementation.
Early integration of international payroll can help avoid operational risks by:
• Eliminating the need to re-configure the HCM platform mid-project, based on payroll
• Implementing global payroll first ensuring all the employee data will feed into the HCM system. Global payroll integration ensures that HR Data is complete
• Leveraging the implementation teams to manage the implementation of both HCM and payroll. Additionally, you will have subject matter experts from both organizations working together, which will limit post-project consulting fees
• Eliminating “Project Fatigue” by reducing the overall timeline of both implementations
Early integration of international payroll can help avoid technical risks by:
• Assuring that all country-specific and local bank required labels are configured correctly in the HCM platform aligning with the integrated platform. For example, many HCM platforms align with the Celergo Global Connect integration
• Assuring all global pay codes are standardized
• Creating the natural flow of the integration, where the HCM platform feeds/drives the payroll process
• Securing data integrity between the HCM platform and the integration. Data integrity is maintained when the HCM feeds updates via
the integration to a platform such as Celergo Global Connect
• Eradicating dual maintenance of the HCM platform and the integration
To ensure a smooth HCM system and international payroll integration, and maximize your investment, either implement international payroll first or at the same time, this provides for a holistic, fully integrated single system. If you have already integrated your HCM system, Now is the time to revisit your investment and consolidate global payroll to fine tune and configure your HCM for optimal performance.
For more information on avoiding costly risks during HCM system and global payroll implementation, please, contact one of our Global Payroll Experts.
**This article is for informational purposes only. It is not intended to constitute legal advice.