The HRIS Global Payroll Integration Challenge Is: A Lack of Data Mapping.
If you’re an expert on HR technology, then you know exactly what I’m talking about. If you’re not, let me explain.
Many large MNCs have a Human Resources Information System (HRIS), which is a technology system that provides a single, centralized view of HR data and can include a variety of modules such as recruitment, training, benefits and payroll.
Within a sophisticated HRIS, the employee data is all integrated, so each employee’s details can be viewed and analyzed within each module. The data “fields” are the same such as their name and title e.g., “FirstName,” “LastName,” “Title,” etc.
That’s great. But what about the global payroll integration. Here’s the challenge.
Global employees are paid in their respective countries. Their pay slips are distributed locally and are generated by an in-country organization. It could be the company’s local entity that’s generating the pay slips but the local entity may not be using the HRIS. If that’s the case, then their employee data fields are probably different than the HRIS. They might say “First Name” with a space, as opposed to “FirstName” without the space as in the example above. Because of that one little space, the two technology systems cannot “talk” to each other.
If a company doesn’t have an in-country entity and has outsourced their global payroll functions to a local HR or payroll company, they will have the same problem. The local payroll company will also have its own naming conventions e.g., “Name First,” which is completely different and again, will not be able to “talk” to the HRIS.
That’s the HRIS Global Payroll Integration Challenge.
If there’s no integration, then there’s no way to export and import the global payroll data in and out of the HRIS. There’s no way to export the data from the HRIS to the in-country processors and likewise, no way to import the final gross to net data back into the HRIS (or to the General Ledger for that matter). That leaves the organization with two options. They can handle the process manually which would have to be done every pay cycle and for every country in scope (not to mention it takes forever and is less accurate than automated processes). Or, they can get by without having any kind of global payroll integration, which means they will never have a completely consistent view of their global HR data and their international labor costs.
There actually is a third option. The organization can work with a global payroll company that focuses specifically on this global payroll challenge. They have technology systems that “map the data fields” from the HRIS to the in-country payroll companies, which automates the process and gives the organization global visibility into its global HR data. Problem solved.