3 Reasons Why Payroll and HR is Crucial for Business Success
Payroll and HR overlap in a way that is crucial to maintain a thriving business. Although these roles serve different functions in an organization, they’re both similarly involved in employee relations. Payroll is considered a function of HR because it pays and deals with the financial side of the employee. Since payroll activities are closely related to some of the duties of an HR professional, both departments must coordinate shared functions. Integrating these departments can help mitigate risk and help ensure business growth. In this post, we look into three specific ways that payroll and HR work together to build on a business’s success.
Payroll and HR ensure employee retention
It’s the responsibility of payroll, which is its own independent department in many organizations to administer paychecks to employees. Consistency is key here. An employee’s relationship with management is built on a foundation of trust where the payroll process is steady and stable. Similarly, HR helps to communicate this payment information to the employee upon hire. With a smooth functioning payroll department coupled with a dedicated HR team, your employees will know how and when they’ll get paid. Retaining employees is a top priority for many business owners. If your payroll process is irregular and your HR department poorly communicates paycheck information, it’ll probably be pretty hard for your company to keep employees on your staff.
Payroll and HR execute strategic goals
Both payroll services and HR consultants work to protect vital employee and company interests. They aim to achieve this balance in a variety of ways, but primarily, they strive to keep sensitive data secure. According to a recent editorial, payroll, HR, and management services each push to provide security and efficiency solutions. These options include the development of tight IT systems and execution of internal auditing, which both mitigate risks and help businesses grow. Further, employee information security helps organizations remain compliant. When payroll and HR team up to keep digital and physical copies of paystubs protected, businesses maintain compliance and avoid costly litigation.
Payroll and HR utilize innovative technologies
It’s imperative that payroll solutions and HR keep up with 21st century technological demands. Vivian Maza of Forbes recently stated that companies should streamline their payroll services technologically. This kind of optimization process will only benefit payroll and HR departments. Employing this same decision-making logic, major payroll players like ADP are investing massively in HR technologies that deliver payroll functions. Online payroll solutions are only increasing in popularity, and HR departments across the board are adopting the new payroll methods with open arms. The collaboration of the two departments technologically will only improve management services and employees’ relationships with management and with each other.
Payroll and HR work together actively to improve basic and necessary business operations. HR Affiliates will help your company streamline both your payroll and HR management services. Fill out the form below, and let’s meet up to talk about how we can bring your payroll services and our HR solutions together.