3 Strategies for an Effective Integration of HCM Technology with Global Payroll

Tuesday, October 23, 2018 | Technology

Human capital management (HCM) applications are the backbone for organizations, enabling them to manage all aspects of their workforce. However, when it comes to a business process as complex as global payroll, more and more organizations are decoupling their payroll functionality from their HCM applications, according to a recent Gartner report.

Decoupling is a viable approach and becoming the preferred means for organizations that process a global payroll. The payroll provider is responsible for the integration to and from the HCM as well as processing, servicing and supporting all payroll functions. When it is time to begin an implementation project, there are three strategies to consider to effectively guide the integration of your HCM technology with your new global payroll provider of choice.

Mapping the Data

Mapping your data between systems is of the utmost importance to the success of your integration. Your global payroll provider must fully understand your HCM system and its nuances and successfully align and map all data from one system to the next. The implementation team is responsible for ensuring that “value A” from “system A” feeds into “system B” and goes to the correct place. For example, a bonus payment may be tagged as “bonus” in one system but may be tagged as something different in another system. If that isn’t caught, addressed and fixed across all systems, then preventable problems post-implementation can occur.

A global payroll system provider can this bring knowledge and expertise, however the buyer must be knowledgeable about its data and help the provider understand these nuances. A common disconnect in the implementation and integration process is that people making the decisions on what to do with data aren’t always the ones on the ground using the system(s) daily. Figuring out how to mitigate and reconnect that issue is vital. Your strategy needs to include a platform that can accommodate nuances and that ensure your data is in a much better place.

Handling Data Changes

Personnel data is constantly changing in organizations, so much so that there is virtually a real-time constant feed of data changes. This does not fit the typical payroll model, which usually collects data updates and processes any changes on a per cycle base. For most systems, this adds a layer of complexity. An alternative and more flexible option is one that is configurable, allowing users to map a layout and automate the process of data changes. Ideally, you want as little human management and manipulation of data as possible. Instead, one system routes the data into the other system, which then configures the data appropriately, according to the mapping already in place. This frees up more time for your team to find errors instead of processing the changes—a more high-value activity.

Standardizing Implementation

While it may sound simple, all implementations need to start with a deep and detailed discussion, so the global payroll provider can learn your requirements, both from a system and processes perspective. Failing to align business requirements and objectives with the implementation methodology can lead to many headaches, inconsistencies and eventually failure. Once the business objectives and requirements are adequately communicated, the provider will be able to take those requirements and fit them into their standard implementation procedure that should be based on best practices from lessons learned.

Ensuring a successful integration between your current HCM technology and your global payroll solution is critical to the success of your payroll organization. iiPay’s solution and commitment to excellence in international payroll technology and service exceeds client expectations in every aspect of the global management process.

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