How can unified HR and payroll systems benefit the public sector?

Unifying HR and payroll: a game-changer for public sector efficiency

Amid fiscal pressures and growing community needs, government bodies and local authorities are unlocking new efficiencies by modernising their people and remuneration processes with cutting-edge, consolidated platforms.

This article covers:

• The challenges posed by disparate HR and payroll systems in the public sector 

• How unified solutions drive efficiency, reduce risk, and improve employee experience 

• Civica's integrated HR and Payroll offering and its impact on public sector organisations.

In today's complex public sector landscape, efficient workforce management is more crucial than ever. Yet many organisations still need to grapple with the challenges posed by separate human resources (HR) and payroll systems, which can lead to inefficiencies, data inconsistencies, and increased risk.

"HR and payroll are intrinsically linked," says Kirsty Fowler, Executive Director of People and Workforce at Civica. "It's about managing your people effectively and ensuring accurate compensation. HR encompasses employee behaviours and serves as the central repository for all personnel data – we often liken it to a sophisticated filing cabinet for your workforce information."

Beware of disparate systems

When HR and payroll functions operate in silos, public sector organisations face numerous challenges.

Data inconsistencies
Maintaining separate databases for HR and payroll can lead to discrepancies in employee information, potentially resulting in payroll errors and compliance issues.

Inefficient processes
Manual data entry and reconciliation between systems consume valuable time and resources, diverting staff from more strategic tasks.

Limited visibility
Managers lack a holistic view of workforce data, hindering informed decision-making and strategic planning.

Compliance risks
Disparate systems increase the likelihood of non-compliance with ever-changing regulations, potentially leading to costly penalties.

Poor employee experience
Disconnected systems can result in delays and errors in payroll processing, negatively impacting employee satisfaction and trust.

The power of unification

Integrating HR and payroll systems offers numerous benefits for public sector organisations, transforming how they manage their workforce and process compensation. At the heart of this integration is creating a single source of truth for employee data, which significantly enhances data accuracy and ensures consistency across all HR and payroll functions. This unified approach eliminates the need for multiple data entries, reducing errors and saving valuable time.

Another vital advantage is the streamlining of processes through automation. With fully integrated HR and payroll systems sharing a common database, organisations can automate processes and workflows around this unified data. This eliminates the need for manual data entry or transfer between separate systems, saving time and significantly reducing the risk of errors.

Moreover, automated workflows ensure that changes in one area, such as a promotion or change in working hours, automatically update all relevant parts of the system, from payroll calculations to leave entitlements. This efficiency allows HR professionals to focus on more strategic tasks rather than getting bogged down in administrative details, ultimately leading to more effective workforce management and improved service delivery.

Compliance, a critical concern for public sector bodies, becomes more manageable with unified systems. These integrated platforms make it easier to stay up to date with ever-changing regulatory requirements and ensure accurate reporting, reducing the risk of non-compliance and potential penalties.

Further, unified systems provide comprehensive, real-time data that empowers managers with the insights needed for effective workforce planning and management. This access to timely, accurate information facilitates better decision-making across the organisation, from resource allocation to long-term strategic planning.

Perhaps most importantly, the seamless integration between HR and payroll functions leads to an enhanced employee experience. More accurate and timely pay processing, easy access to personal information, and self-service options can significantly boost employee satisfaction and trust in the organisation. This improved experience can contribute to higher retention rates and a more engaged workforce, ultimately benefiting the entire organisation and the communities it serves.

Civica's integrated HR and payroll solution

Recognising the critical importance of unified HR and payroll systems, Civica has developed a comprehensive solution designed to meet the unique needs of public sector organisations.

"The core benefit of a unified system is centralised, up-to-date data," Fowler explains. "This allows for informed decision-making based on reliable information, eliminating the need to spend days verifying data accuracy across multiple systems. Or worse, removing data from disparate systems and then manually manipulating this.”

Core features of Civica People Hub HR include:

• Single employee record with multi-post functionality: a centralised database ensuring consistency across all HR and payroll functions 

• Automated workflows: streamlined processes for standard HR and payroll tasks, reducing manual intervention and improving efficiency

• Compliance management: built-in features to help organisations comply with evolving regulations

• Self-service capabilities: empowering employees to access and update their own information, reducing administrative burden

• Reporting and analytics: powerful tools for gaining insights from workforce data and supporting strategic decision-making.

As a case study example, Sensata, a global industrial technology company, implemented Civica's HR and Payroll solution to replace their legacy systems. The implementation included a mobile app for employees, which has seen significant uptake:

• 92% of employees actively using the mobile app

• 100% of employees have logged in at least once

• Over 31,000 self-service tasks completed via the app in six months.

These figures demonstrate the potential for high employee engagement with self-service HR and payroll tools when easily accessible.

For public sector bodies, the benefits of unified HR and payroll systems can be particularly impactful, addressing several areas of concern. Firstly, these integrated systems significantly improve service delivery by automating administrative tasks and streamlining processes. This automation frees up valuable staff time, allowing employees to focus more on delivering frontline services to the public, which is the core mission of any public sector organisation.

Cost savings are another crucial benefit, especially in an era of ever more restricted public sector budgets. Unified systems can achieve significant financial efficiencies by reducing manual processing and improving accuracy. These savings can then be redirected to other vital areas of public service or used to offset budget constraints.

A third significant advantage is enhanced workforce planning. Comprehensive data provided by unified systems allows for more effective resource allocation and long-term planning. This capability ensures that public services are adequately staffed and run efficiently, matching resources to needs more precisely.

Moreover, these systems contribute to better employee engagement. Accurate and timely payroll processing and easy access to HR information can significantly boost employee engagement, satisfaction and trust in the organisation. This improved engagement can lead to higher retention rates and a more motivated workforce, ultimately benefiting the quality of public services.

Embracing the future of workforce management

With the public sector under increasing pressure to deliver high-quality services with constrained resources, the need for efficient, integrated HR and payroll systems has never been greater.

By embracing unified solutions like Civica's HR and Payroll offering, organisations can streamline operations, reduce risks, and improve employee experiences. This, in turn, enables them to focus more on their core mission of serving the public.

"Fundamentally, it's about engaging people from the outset, immersing them in your organisational culture, and ensuring they feel secure," Fowler adds. "Understanding your workforce – their capabilities, aspirations, and how these align with your organisation's needs – is immensely powerful. This comprehensive insight enables you to nurture talent effectively and drive organisational success."

As we look to the future of public sector workforce management, integrated HR and payroll systems will play a crucial role in shaping more efficient, effective, and employee-centric organisations. Those who embrace this technological shift will be best positioned to meet the evolving challenges of public service delivery in the years to come.