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What are the best practices for integrating timekeeping and payroll systems?

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Integrating timekeeping and payroll systems can streamline your HR operations, reduce errors, and improve compliance. However, it can also pose some challenges, such as data security, compatibility, and user adoption. In this article, you will learn some best practices for integrating timekeeping and payroll systems effectively and efficiently.

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Max van der Klis-Busink, MCIPP, RPP

Passion For Payroll, by Max! Contact me.
John Tinsley

Director @ Le Cheminant International | Global HR Solutions
Akinjide Omojola

Product Manager (HRTech and FinTech), Product Growth, HR Technology Consultant, Ideator, Enthusiast and HR Practitioner

1 Assess your needs

Before you choose a timekeeping and payroll system, you need to assess your current and future needs. Consider the size and complexity of your workforce, the type and frequency of your pay cycles, the legal and tax requirements of your location, and the features and functions that you need. For example, do you need a system that can handle multiple shifts, overtime, leave, bonuses, deductions, benefits, and reporting? Do you need a system that can integrate with other HR software, such as attendance, performance, and learning management? Do you need a system that can support remote and mobile workers, as well as self-service options?

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2 Compare your options

Once you have a clear idea of your needs, you can compare different timekeeping and payroll systems based on their functionality, compatibility, cost, and support. Look for a system that can meet your current and future needs, as well as your budget and timeline. Compare the features and benefits of different systems, such as accuracy, reliability, scalability, security, and flexibility. Also, compare the technical and customer support that each system provides, such as installation, training, maintenance, updates, and troubleshooting.

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3 Plan your implementation

After you select a timekeeping and payroll system, you need to plan your implementation carefully. This involves setting realistic goals and expectations, communicating with your stakeholders, preparing your data, testing your system, and training your users. You should also have a contingency plan in case of any issues or delays. A successful implementation requires collaboration and coordination between your HR team, your IT team, your system vendor, and your employees.

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4 Monitor your performance

Once you launch your timekeeping and payroll system, you need to monitor its performance regularly. This means checking the accuracy and completeness of your data, the functionality and usability of your system, the compliance and security of your processes, and the satisfaction and feedback of your users. You should also measure the impact and benefits of your system, such as time and cost savings, error reduction, productivity improvement, and employee engagement. You should also update and improve your system as needed, based on your changing needs and feedback.

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Akinjide Omojola

Product Manager (HRTech and FinTech), Product Growth, HR Technology Consultant, Ideator, Enthusiast and HR Practitioner
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The implementation step comes before monitoring your performance. You have to choose a vendor and implement an integration project. If you are coming into the project having a payroll software then you need to determine a few specifics about the format of the integration to the destination payroll software. Would it be service based or file based? Would it have a cut off period on a monthly or weekly or daily basis? Would it have a manual override. The devil typically is in the details as they say. If you have a time and attendance system, then you need to choose a payroll system that is capable of meeting the statutory requirements of your locale and after that that can deliver the technical integration requirements of your T&A system.

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5 Follow best practices

Finally, you should follow some best practices to ensure the optimal integration of your timekeeping and payroll system. These include establishing clear policies and procedures, educating and empowering employees to use the system correctly, auditing and reviewing data and processes regularly, protecting and backing up data, and evaluating and benchmarking your system against industry standards. Integrating timekeeping and payroll systems can be complex, but it can also bring significant benefits to your HR operations. By following these best practices, you can achieve a successful integration that can enhance efficiency, accuracy, and compliance.

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Max van der Klis-Busink, MCIPP, RPP

Passion For Payroll, by Max! Contact me.
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One best practise I have learnt while implementing a Global T&T system for a global retail brand, is to align the pay code naming in the T&T system with that ultimately landing on the payslips incl. the units. This will ensure the people understand their pay and can tie it back to their hours worked and earned (incl. premiums, overtime). If at all possible, also list the period or days it was earned that is even better. I did not have this option at the time, as we created a consistent reference period so everyone always understood how to tie their pay to the T&T system. Great for adoption and reducing employee questions.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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John Tinsley

Director @ Le Cheminant International | Global HR Solutions
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When I worked for an airline, before the days of timekeeping software, we monitored absence more or less manually. One of my staff noticed that two employees in a certain country were always absent at the same time. (a lady in accounts, and a man in the cargo department. Both were married. We honestly couldn't decide what to do with the info. It seemed a bit brazen to approach the cargo chap and say " We have notice you and Madame ZZZ always have the same day off .." We ended up sending out a general memo extolling the virtues of our absence control "system", mentioning that we could notice if staff took the same day off. The message obviously got through and the synchronized absences stopped. Maybe it became a weekend only friendship.

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What are the best practices for integrating timekeeping and payroll systems?

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1 Assess your needs

2 Compare your options

3 Plan your implementation

4 Monitor your performance

5 Follow best practices

6 Here’s what else to consider

HR Operations

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What are the best practices for integrating timekeeping and payroll systems?

1

2

3

4

5

6

1 Assess your needs

2 Compare your options

3 Plan your implementation

4 Monitor your performance

5 Follow best practices

6 Here’s what else to consider

HR Operations

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