Why the integration of HR payroll software is important for small businesses?

initially it is managed with excel then slowly one gets migrates to an application. Now comes the problem of one set of employee master data would in attendance and the other set in payroll.

Many of the the SMEs do not give due importance to integration because of lack of proper advise. Initial focus for the business owner or HR is to bring the attendance in order, so he buys an attendance machine. Normally a software is provided with the machine free of cost or at a throw away price.

Then comes the Payroll, initially it is managed with excel then slowly one gets migrates to an application. Now comes the problem of one set of employee master data would in attendance and the other set in payroll. Clearly duplication of efforts.

Similarly for other modules like travel, training, appraisal, exit, separate employee master data would be a maintained. Typically HR software would work like islands in such situations.

One main disadvantage of non integration is that one cannot get useful consolidated integrated analytics in one click either for the organisation as a whole or for an employee to have a proper insight of the data the other major disadvantage is that there is no control of movement of data between modules resulting in wrongn posting leading to erroneous calculations resulting in losses which are not noticed by the business owner.

Imagine a loss of Rs.10 per employee per day in an employee strength of 1000. This info would open the eyes of CFO or the business owner to implement an integrated HR suite

This not only happens in small business but also in many large companies.