Managing the human resources and payments are challenging tasks for any business. And everything gets even more difficult once you realize you have to ensure an integration between your HR and Payroll Dubai.
Although HR and payroll departments carry out different activities, they are linked through several aspects. In this regard, it’s important to ensure there’s a great connection so you can have a smooth management of both areas.
In this article, you’re going to learn how you can solve the common problems that are creating a gap between your HR and payroll process activities. Additionally, you can learn why a service provider can give you an excellent solution so you won’t have to worry about anything. Let’s observe:
- How to have a solid integration of your HR and Payroll Dubai
- What are the common problems between HR and payroll?
- Why sharing data is a challenge for both departments?
- Which department should oversee payroll?
- What tool can you use to consolidate functions?
- Why is automation the perfect solution to close the gap?
- Why is Connect Resources your best option for your HR and Payroll department?
1. How to have a solid integration of your HR and Payroll Dubai
Your business has several departments that handle different functions but they should all have a great connection to improve your production and decrease the likelihood of errors. When it comes to your workforce, there are two departments that are crucial, which are HR and Payroll.
If you’re used to manage your departments separately and you don’t encourage any communication between your staff of these two areas, you may be neglecting a great opportunity to take your business to a whole new level.
However, before diving into how to solve these challenges, it’s important to have a great understanding of each department.
1.1 What’s the role of HR?
Your HR department handles everything related with your workforce. As its name states, it manages your human resources. You may have HR experts that work hard to carry out their tasks properly to decrease employment issues.
However, there are some HR tasks that relate to payroll, which are the following:
- Keep track and report working hours
- Manage and inform salary increases
- Financial incentives
- Report vacation days
As you can see, there are several elements that are included in your payroll, and for this reason you should promote a solid communication between these two departments of HR and Payroll Dubai.
1.2 What’s the role of payroll?
Your payroll department is in charge of processing and making the payments to your employees. In addition, payroll experts calculate taxes and carry out any other task that’s needed.
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1.3 Why should you promote integration between your HR and payroll?
The information that both departments handle it needs to travel efficiently from one to another. Let’s observe some of the reasons why you should put your pieces together as follows:
- Payroll should get all the information it needs to run it and make the payments
- Having a solid connection between both departments will mean that employees get payments on time and with accuracy
- HR should get information from payroll to ensure the payments are aligned with the budget
2. What are the common problems between HR and payroll?
Once you know the role of HR and Payroll Dubai, you must think that it’s not difficult to achieve an outstanding cooperation between both departments.
However, this may not be as easy as you think. You need to build a symbiotic relationship between these two departments but you may encounter some challenges or problems on the way.
Since both departments share the same purpose, your focus should be on aiming they work together properly so they can thrive.
Let’s observe the most common problems that stop your business from having a solid collaboration between HR and payroll as follows:
2.1 Differences in approach
Perhaps the problem why HR and payroll can’t seem to integrate is because they have different approach and different personalities.
This can be easily seen with employees, your payroll workers are focused on making precise calculations and concrete numbers while your HR staff is dealing with more abstract concepts such as motivation or loyalty.
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2.2 Manual reporting
One of the main things that may be creating the gap between your HR and payroll is how they process the data. Many small businesses started their payroll department with manual reporting but as you grow you need to adapt to the new technology and software.
Most companies still have a room full of staff processing the payroll by hand. You may think this isn’t a problem but it actually can cause the following issues:
- Labor-intensive payroll processing which leads to tiredness and poor performance
- Take huge time to your payroll specialists to process it
- Increases the likelihood of errors and inefficiency
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3. Why sharing data is a challenge for both departments?
As we mentioned before, the HR and Payroll Dubai should share data, but this isn’t easy if you don’t have a centralized system.
If HR and payroll staffs are just using pen and paper to create their reports, you may have several errors in them.
Having a manual processing of your information it means that you’re going to have manual reports that are prone to errors and discrepancies between departments. Thus, each report may look different from each department.
It’s a huge problem because when you have to reconcile the information between the HR and payroll it’s going to be more difficult. All of this can even wider the gap and increase the disconnection.
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4. Which department should oversee payroll?
When it comes to understanding the work carried out by your HR and Payroll Dubai, there’s always a challenge that businesses face regarding the latter.
The payroll department is oftentimes seen as part of the Finance team, which it’s logical since they handle payments, taxes, calculations and more. Many business owners could think that all of these tasks relate more to the functions of Finance. After all, if you have to deal with taxes, the tax experts are in your Finance team.
However, since payroll manages payments to your employees, and HR is responsible for them, it could be said that payroll belongs to HR. In addition, bonuses and salary payments were negotiated by HR with the employees. If you add the fact of data privacy you’re definitely entering the HR territory.
4.1 Should HR oversee Payroll?
Considering all of the above, we could say that payroll could be part of both HR and Finance. However, it’s important to point out that only one of them should oversee payroll functions.
While small-size companies may not put payroll under Finance, large corporations tend to do this since it could be the easiest approach. Nevertheless, this can widen the gap between HR and payroll and this is not what you should aim for.
The solution is to keep HR involved with payroll, so you can get your HR staff to learn more about how to improve the worker experience.
5. What tool can you use to consolidate functions?
Having a manual processing of your data can increase the challenge of cooperation between HR and Payroll Dubai. If you don’t have a centralized system, it doesn’t matter if your HR staff is fully submersed in payroll because it will be impossible to have a solid collaboration.
In this regard, you could use a tool that helps you make your work more manageable. We’re talking about a Human Resource Information System, also known as an HRIS.
Let’s observe its main features as follows:
- It has separated modules for different HR functions
- It can track time clock management
- Helps with legislative compliance
- It offers a detailed plan of benefits
- Workers can use the Absence and Leave management so they can track and request leave
5.1 What is an HRIS?
An HRIS is a tracking system that helps businesses to track the life cycle of employees. The HR staff enters the data into the system for all your employees, and it will work automatically to search anything that’s necessary.
Some of the information it handles is as follows:
- Attendance records
- Employee’s performance
- Fluctuations in salary
- Bonuses, and more
With the tracking software, the HR and payroll workers are able to track everything related with a determinate employee, for example if he or she received a performance bonus, and then a promotion and then a salary raise.
5.2 What are the disadvantages of an HRIS?
While this tool can be very powerful to boost the cooperation between your HR and payroll, it’s not a viable solution for all businesses. Let’s observe the downside of an HRIS as follows:
- It’s a costly tool
- It can be more suited to large corporations (50+ employees)
- The tool doesn’t actually help process payroll
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6. Why is automation the perfect solution to close the gap?
Since an HRIS can be costly for some businesses and it actually doesn’t close the gap between HR and Payroll Dubai, which is precisely what we’re looking for, we must find out another solution that could work.
Thus, automation may be the way. You have to link all the functions of these two departments into one efficient system.
Let’s observe how an automated system works for integrating your HR and payroll as follows:
- Brings all the payroll and HR information to one place
- The HR and payroll data is also available digitally
- Payroll manager oversees the process and can report to HR or Finance since this doesn’t affect cooperation
- It provides reports in real time
- It ensures compliance with laws and regulations
6.1 How can a service provider offer you automation?
You could either purchase HR/Payroll software that ensures an automated solution, or you could partner with a third-party that offers you this service.
By choosing an outstanding service provider you can even gain more benefits. You’ll be able to focus on your core activities while the outsourcing agency handles everything. In addition, an outsourcing firm can be a cost-effective solution.
Therefore, a PEO can help you have an outstanding management of your HR and payroll functions and ensure total integration so there is not a gap between them.
Keep in mind that ensuring a solid integration could boost your operations. So, you have to consider your options to select the best one based on your needs.
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7. Why is Connect Resources your best option for your HR and Payroll department?
If you want to achieve an outstanding integration between your HR and Payroll Dubai, here in Connect Resources we can help you. With our comprehensive service, you won’t have to worry about gaps or differences since our team of specialists will handle everything.
We have been providing our service to several companies in a variety of industries, so we ensure you we will understand your requirements. By partnering with us you get access to our HR and payroll experts as well as to our latest technology. Your business will get the boost it needs to start improving its results.
Would you like to contact Connect Resources for PEO Services? You can call at +971 433 166 88 or send an email to firstname.lastname@example.org, and you’ll talk to one of their representatives that will gladly answer all of your questions.