4 Key Principles of HR and Payroll Management

by | Feb 8, 2021


In order to make the most out of your hr and payroll management, your company must go through a needed self-analysis. This is also essential when choosing a new payroll software in the Philippines.

However, with the right payroll software, it’s easy to sync your payroll system with other HR functions.

4 Steps to Maximize Your HRMS-Integrated Payroll

Here are four steps to ensure you can maximize your HRMS-Integrated payroll:

Review Current Payroll Process

To maximize the efficiency of your payroll process, it is ideal to assess and analyze it first. The information you gather can be of great help once you go to search for the ideal Philippine payroll software.

First, make a diagram of each payroll process you’re considering. What you want to find are bumps on the road that slow down the flow of data. After locating these errors, analyze what causes them and then find out how to avoid them in the future. You can also identify any redundancies present in your current payroll processes such as unnecessary checks and monitoring.

Second, you should be clear about what you’re aiming for. Even though it’s tempting to fix an error when it appears, take your time to create a strategy first. Identifying your priorities will provide you with a clear overview of your process.

Finally, you are ready to change the process with the information you now have. Take note of the following opportunities and constraints as the different roles in your company, self-serving functionalities, issues regarding security, access through mobile apps, issues with compliance, effect on other HR functions, and employee reaction.

Reviewing the current payroll process you’re running is essential when you’re shifting to a new one.

Ensure the Synergy of Payroll and Self-Service

Self-service functions work well for engaging the workforce in HR relations. It is also needed for your payroll system to function as expected. Common self-service functions of the hr and payroll management system in the Philippines include payslips, access to tax reports and other deduction statements, and easy changing of employee details and payment methods.

There are several hurdles you may encounter when getting your employees to engage in the self-service module. Such obstacles should be considered when switching to a new payroll system.

The first is training. Proper orientation on the self-service payroll is essential if you want your employees to make good use of it. This requires proper planning as you are delivering training programs to everyone in the company or organization.

Second, are resource issues. New software rarely comes cheap. There are several factors like maintenance, hidden fees, and tech support to consider when it comes to expenses. Choosing and applying a new payroll system requires time and money.

Lastly, there is user adoption. Once you have chosen and implemented your new system, the whole workplace will now have to adapt. Self-service could be a big leap from your old system. Therefore, it requires some getting used to. When choosing which HRMS self-service functions to implement, consider the following:

  • Stakeholder needs: identify how it could benefit your stakeholders. Features that benefit them will cause an easier transition into the new system which you can use for leverage for future features you might want to add.
  • Access: identify how the users can access the system; be it through computers, tablets, smartphones, etc. However, it may differ if you have a different work environment.
  • Cost: be clear about how much this new system costs, but also be clear about the expected benefits and returns.

Integrate payroll with your main HRMs

The hr and payroll management systems in the Philippines don’t function alone. Sending out your employees’ salaries on time depends on your accounting and attendance system as well. Therefore, there is a need to contact other business intelligence systems and HR modules.

The following are benefits of exploring HRMS integration opportunities for payroll:

  • Single Data Entry: A single or combined database is pretty much self-explanatory. Accessing data is easier and it vastly reduces the possibility of errors and mistakes.
  • Less paperwork: Since everything would be in a single database, there is no need to keep data on paper. This saves time and the environment!
  • Better report quality: As the need for accurate work data grows, the management would expect that it would lead the company to data-driven productivity.
  • Smoother teamwork: The chances of an error occurring is minimized if every employee has access to the software. This method is better than the HR department handing over the payroll information manually.
  • Improved accounting: The company’s biggest expense is employee compensation, but it’s one of the many expenses. The accounting departments rely on accurate information from all teams, including HR and payroll management. The right payroll software with the right API integration will work well with common accounting packages, keeping your accounting department satisfied.

The biggest selling point of HRMS payroll integration is that other businesses are investing in it as well, and the last thing you want to happen is to be surpassed by your competitors.

Automate Your Payroll Compliance

In the Philippines, automating your HRMS payroll processes eases the burden brought by legal or legislative requirements. Before you shift to the automated system, take note of these things first:

  • Integrate time, attendance, and payroll: Payroll or payment of salaries depend on the accurate records of time spent by the employees working. Even a simple error can cause problems such as overpayment or underpayment. Rate of salaries are also defined by legislation, in our case in the Philippines, it is covered by Presidential Decree No. 442, also known as the Labor Code of the Philippines. With the appropriate software, you don’t have to worry about these factors as much.
  • Be aware of international payroll issues: This applies if your company employs people from other countries. If that is the case, then they will be under different labor laws. You may want to opt for a global system that can handle a widespread workforce. On an individual level, there may be other issues such as misclassified employees. Freelancers, contractors, and temporary employees are example of an individual who are not legally considered as an employee in other scenario. They require a different form of compliance than that of employees.

Finally, you should ensure that you are fully aware of legislative acts that govern the hr and payroll management system in the Philippines. One good example is the aforementioned Labor Code of the Philippines, which sheds light on common concerns like when the 13th month pay should be release. With your software, you should already have this in check but bear in mind that laws can change regularly.

Is your company ready for an upgraded HR and payroll system? Please email us at customer.success@agentsofvalue.com

Written by Gia Panuncialman

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