CIPP FUTURE OF PAYROLL REPORT 2019
How does your payroll software integrate with your HR systems? One of the biggest concerns that remains un-tackled is should payroll be integrated with the HR system. There are huge benefits to this, but also there are huge concerns too. It all depends on the risk culture and who’s making the decision. One of the main benefits to interfacing or integration is the reduction on someone having to rekey information correctly into payroll (benefits are costs, quality and time). However, some people also see that not having the interface or the integration reduces the concern that HR is passing bad data. As a result, instead of addressing the key issue/ perception of data quality they prefer the disconnection.
Does not work well 12%
Works well 30%
No integration 37%
So, what did the answers tell us? Split evenly 50.95%/49.05% it’s no surprise to see the result was slightly in favour of integration.
20.7% stated that it was working ‘seamlessly’ and 30.25% said that it ‘works well’. Where it ‘does not work well’ ( 11.72% ) and ‘no integration’ ( 37.33% ) there is a golden opportunity to understand this (pros and cons) to see how this could be fixed/improved or simply just understood? How does your payroll software integrate with your finance systems? Marginally; the split this time was in favour of not-integrating/not working well i.e. 49.18%/50.82% . Few respondents said it was working ‘seamlessly’ ( 11.41% ) and a high proportion stated that the integration ‘works well’ ( 37.77% ). 7.07% said that the integration ‘does not work well’ and there were a high proportion of respondents who had ‘no integration’ ( 43.75% ), this is not surprising as systems tend to be payroll and HR as opposed to payroll and finance, How does your payroll software integrate with your pension software? Now this one might be a tougher nut to crack as pension software is normally outside of the organisation. Not surprisingly the split this time was 40.65%/59.35% in favour of not-integrating/not working well. Where it was working ‘seamlessly’ ( 7.86% ) and ‘works well’ ( 32.79% ) it would be good to understand how they were able to do this so that others in payroll can better understand and learn from those who had been successful. This could be due to the use of PAPDIS which was a tool introduced by the CIPPs friends of automatic enrolment group. PAPDIS, or the Payroll and Pensions Data Interface Standard, is a standard template which payroll departments can use to transfer data to pension providers. The CIPP, through friends of automatic enrolment, encouraged pension providers and payroll professionals to adopt PAPDIS to streamline the transfer of data between systems. Speak to your pension provider to obtain your PAPDIS template. Where it ‘does not work well’ ( 10.30% ) and ‘no integration’ ( 49.05% ) we encourage you to download the PAPDIS template and work with your pension provider to implement this for your data transfer. What are the top three issues you face with technology currently? Looping back to the start of this section where we discussed the respondent’s answers to their strategy regarding changing the payroll software, the answers to this question seem to suggest that there should be more people looking into this.
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