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If yours is a small business, you can optimize the value of an enterprise resource planning (ERP) HR (Human Resources) payroll system. Small businesses today have the ability to access this software online, with anon-demand, online, software as a service (SaaS) subscription. The human resources-payroll components work closely together in businesses of every size. But it is especially important for small firms, with less means. A business with as few as three to five people can effectively operate this software system and use it to gain a competitive edge. Not many application modules are necessary for small entities and those placed on their operating platform can easily be bundled. The platform is smaller, but is distributed and all-inclusive. It is also integrated and automated. Information between the accounting unit and human relations can flow seamlessly, back and forth between the two departments. Information and data required anywhere else throughout the business can easily be accessed as well.

Human Resource Payroll System

An enterprising HR Payroll System  

Sometimes there is an immediate need for information to be exchanged between the HR and accounting departments. In the past that meant memos, telephone calls and office visits. But today, smart companies are taking the Web-based approach to operating their businesses. And the results are impressive. Many small businesses have found greater economies of scale with enterprise software and they have also been able to gain market share by conducting business in such a way as to appear to be a larger entity than they actually are. Small, creative companies, in numerous fields have used this software system to grow their business. This software can work for any type of business and its use runs the gamut from accounting, architecture, construction, manufacturing, distribution, supply chain management, wholesale and retail trade, public services, educational services, customer relationship management and more.

The enterprise HR payroll system can simplify the process of administering the relationship between the people in accounting and the folks in human resources. Information relating to such things as wages, health benefits, training, taxes, withholding and deductions, temporary workers, Workman's Compensation, all come into play. Then too, is the opportunity to have Intranet employee portals in place so that personnel can easily access information in their personal employment files. This is a software system that makes it convenient for employees, management and customers, to communicate, collaborate and share information on a real-time basis. The information shared between accounting and human resources is readily accessible through the enterprise operations dashboard and communications flow across the system in such a way that information and data can be accessed with real-time visibility.

A small business can do a lot with this software system. It can apply only the software applications it needs, bundle them and extend the platform as the business grows. This is the kind of software reach that you can’t get out of a package. It is however available online. The response to software as a service (SaaS) and Web-based access to ERP has been phenomenal. It has grown to become the largest software market. It has attracted many businesses and its growth just continues to spiral.

The time is now for an HR payroll system.

There are a number of different ways to approach the way in which an HR payroll system works.  Payroll is either done in-house or contracted out to an organization like Paychex or ADP.  Regardless of whether payroll is outsourced or the company continues to do it themselves, having the correct HR payroll system goes a long way toward ensuring the accuracy and efficiency of the payroll process.

Human Resourse Software

HR Payroll System Tools and Technologies

There are time keeping mechanisms and software products developed specifically for payroll.  Sometimes this functionality is embedded within a large end-to-end business solution either by means of in-house development and configuration or with the assistance of additional utilities or plug-in to the core business system.  Payroll products such as Kronos, Ceridian and Cyma offer generalized payroll capabilities that are configurable to meet the needs of most payroll departments.

Software solutions designed to cater to service and time driven payroll activities have also been developed to work for consulting and self-employed consultants and service providers.  The HR payroll system in many large companies must accommodate payment of consultants from third party erp vendors and self-employed individuals and independent contractors.  Providing 1099 information at the end of the year is required and that is a separate process entirely from that of the rest of the workforce.  

An HR Payroll system must be able to interface with outside vendors to provide earning and billing data, chargeable time and so on.  Human Resources should be able to retain access to the data for reporting and salary history purposes.  HR payroll system data is extracted from a company’s business system database at a set time each week and uploaded to the payroll company for processing and payment.  

Direct deposit is the most common way that employees receive their salaries and direct interface between payroll and various banks via ACH (automated clearing house) is a functionality that most HR payroll systems require.

In-house systems perform all of the transactions that outsourced payroll services are capable of but they also provide for specialized functionality and proprietary configurations unique top a specific organization.  Often bonus and incentive programs are tied to the payroll system.  Employee numbers are frequently used as a unique identifier within the system and those can be generated out of or for the payroll system.  

Confidentiality is a major consideration for an HR payroll system and that is why many organizations prefer to handle payroll themselves rather than delegating such sensitive information and responsibilities to outside vendors.  Whatever the case, payroll is a basic, primary and essential function handled most efficiently with the use of an HR payroll system.

Keeping accurate records and banking knowledge down to minutes of vacation time or other PTO (paid time off) is an intricate business with much visibility.  Human resources departments the world round share the same sense of urgency and priority when it comes to pay day so doing the research, knowing the requirements and testing different payroll scenarios is critical to the formation of a viable payroll administration strategy.  Do the homework and the company will reap the rewards in the form of accurate reliable paychecks for like employees.  

Human resource management has become an indispensible company function all over the world to a greater degree than ever before.  Regulations have been added and requirements increased and keeping track of all that is human resources management is just as challenging. Employee records, applicant processes, recruitment activity, policies and procedures, benefits, payroll, federal and state regulations, OSHA requirements, and any number of other data points, make human resource management software systems an absolute must.  In the United States, HIPAA regulations regarding personal medical information dictate that records be stored in a way that best insures that employee health information remains private.

Human Resource Management

Human Resource Management and the Business of Business

Oracle has brought PeopleSoft and JD Edwards into the fold to meet the needs of the human resource management market.  SAP’s payroll and human resources management modules are robust and sophisticated. There are third party applications like Ascentis, Sage and Kronos, that specialize in meeting the functionality needs of the human resource management software market.  Small and medium businesses are being wooed by software development companies hoping to capitalize on the smaller market niche often ignored by megaliths like SAP and Oracle.

Human resource management looms large in the business plan of any company regardless of the size of the operation. Human resources manages vast amounts of data and human resource management software is an effective and essential tool for efficient management of that data.  Data bits such as name, address, and social security numbers are only the beginning when it comes to human resource management. Payroll looks to HR records for time, attendance, tax information, deductions, and special programs and so on.  Benefits packages and their administration, HIPAA, COBRA, family status, unemployment insurance, disability, training and certifications, PTO (paid time off) vacation, incentives, employee development plans bonuses, the list goes on and on.  

Human resource management duties are sometimes outsourced.  A company like Ceridian specializes in making its services available as an external resource for human resource management. While most companies choose to handle human resources due to the sensitivity of the information, routine tasks are being outsourced. Ceridian and its competitors exist to fill that niche market.

Small and midrange businesses often have less than deep pockets available to their IT budgets and the software industry has noticed.  SAP and Oracle both require extensive investment in hardware infrastructure and the software packages themselves are very expensive. Implementation is labor intensive, time consuming and expensive.  Administration, maintenance and support of a large traditional software system is also a very onerous responsibility requiring deep benches of highly skilled and highly priced IT personnel.

Alternatives to traditional erp systems are more available than ever before.  SaaS (software as a service) and hosted software are viable choices for companies with stricter budgets. SaaS systems and hosted systems can effectively deliver all the functionality of traditional software solutions to organizations with small and midsized budgets.   Implementation less expensive and time consuming and ongoing administration, maintenance and support remains the responsibility of the service provider and terms and conditions more flexible. Whether an organization chooses to retain all HR management duties or outsource them, effective human resource management is vital to business success.

HRIS (human resource information systems) software interfaces with the ERP (enterprise resource planning) or business system as an essential tool for managing personnel and recruitment.

Human Resource Information Systems Software

HRIS software, an important add-on


Though ERP systems are often described as end-to-end software solutions for business, specialized HRIS software is required to optimize human resources functionality.  Human Resources departments are looking for HRIS software that facilitates much more than just the storage of employee data.  

Human Resources duties extend far beyond what they once did.  Going far beyond hiring and firing and planning company picnics complex and extended responsibilities and adherence to regulations require functionality of software with much larger capabilities.
Human Resource Information Systems (HRIS) provide overall:
·    Application and resume management
·    Benefits administration: enrollment, personnel data updates and status changes
·    Company-related documents:  employee handbooks and safety guidelines
·    Complete integration with payroll and other company financial software and accounting systems
·    Compliance records (OSHA, HIPAA, Citizenship, etc.)
·    Emergency procedures
·    Employee information management
·    Reports and analysis tools


HRIS that most effectively serves companies tracks:
·    Applicant tracking, interviewing and selection
·    Attendance
·    High potential employee identifier
·    Paid time off (PTO) and vacation tracking use
·    Personal/private employee data
·    Positions held, pay grades
·    Salary history and raises
·    Succession plans for management and key employee
·    Training and employee development performance plans disciplinary action

Often, Employee records and identification numbers are used as a key for other business software systems and tools. For instance, a Help Desk call tracking tool and database can be developed by mean of the ERP or business software solution with employee numbers as the key value.  Those key values are obtained by means of an interface between the HRIS and the ERP.  Other proprietary and customized applications are often created that rely on HRIS software for unique identifiers though the functionality of such apps can be seemingly unrelated to human resources activities.

The trend toward self service has become the rule rather than the exception that it once was.  More and more, everyday life is conducted on a self serve basis.  Pumping gas, automated teller machines, self checkout and, now, employee self service software that allows individual employees to check PTO and vacation balances, schedules and announcements and so on.

Applications are often completed online by both internal and external candidates.  Company websites routinely feature links to employment opportunities and electronic online applications for completion by prospective employees. The information can be downloaded into the HRIS software database.  

Internal websites are also common in companies of all sizes. HR and employee development pages are accessible to internal access and are often used as electronic bulletin boards and a clearing house for hr related information and policies.  Employees can go to the site to look at or download claims or tax forms, employee handbooks, etc.

The best of available HRIS software packages are very powerful and sophisticated tools that integrate elegantly with the ERP system at hand. Working in together, information technology, human resources and operations can make great use HR data and inter/intranet functionality through careful planning and configuration design.

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