How Do Payroll Services Work?

Payroll services can be complex and time-consuming for HR staff. This is where HR/payroll systems come in. Such systems consolidate all your processes and data to make sure your business functions at full efficiency and your staff is empowered to maximize productivity.

Many payroll service providers today offer cloud-based payroll services, enabling access from different locations and devices.

Features Provided by a Good Payroll Service

An integrated HR/payroll system will include payroll and reporting, automation and workflow, rostering, and human capital management.

Payroll is just one of the components of an HR/Payroll System.

A good HR/payroll system incorporates these processes and functions:

  • E-Recruitment
  • On-Boarding
  • Engagement Surveys
  • Performance Management
  • Integrated Learning & Development
  • Talent Management
  • Remuneration
  • Workforce Management
  • Compliance
  • HR Document Management
  • Labor Cost Control
  • Payroll and Reporting
  • Employee Self Service

A good HR/Payroll system starts from recruitment and ends at customer support. Modern software for payroll and other Human resources processes are referred to as HRIS.

What is HRIS?

Human Resource Information System (HRIS) refers to a software or system that payroll companies use to bridge the gap between technology and HR processes, with payroll forming a major component.

Different payroll companies use the term HRIS to refer to their software. However, they offer different services under this same name.

Affinity HRIS, for example, provides four main services: payroll, human capital management, labour cost management, and workflow management.


Payroll is not complete unless it is free from all errors. This is one of the benefits provided by HRIS software.

Affinity’s HRIS software is one of the world’s best systems, assuring companies of zero errors in payroll processing. This mitigates compliance risk and makes sure your management is operating at optimal level without having to worry about repetitive administrative tasks.

Automated payroll is the definition of modern payroll services.

Human Capital Management

One of the biggest concerns of HR is how to manage and store employee information. The bigger the company, the bigger this concern. This is why HRIS is well-suited for large companies as well as medium companies that are anticipating growth.

HRIS helps companies to input and update employee information ranging from personal data and history, capabilities, skills, remuneration and recognition. All this data can be effectively managed by companies that use modern HRIS software.

Labor Cost Management

In the past, HR software allowed for labor costs to only be viewed at the end of a pay cycle. This meant that managers could not track these labor costs on a daily or even weekly basis.

With technological growth, HR software can now offer your management team real-time visibility of your labour costs. Additionally, your managers will be able to compare actual labour costs and budgeted labour costs, empowering them to make the necessary adjustments.

Your finance and HR teams will be grateful as this function encourages collaboration between the two departments, something that has always proven difficult.

Workflow Management

Lastly, HRIS software provides effective and automated workflow management. There are defined steps in a payroll system, and progression from one step to the next is automated.

Companies can forget about paper forms and the paper waste that results from this. An example of how this works is a leave request. An employee can make a leave request using the system, and the employer can approve it immediately. All this can be done with no form-filling, and all in a matter of minutes.

How a Good HRIS System Empowers your Employees

A good HRIS system enables your employees to become more productive by empowering them.

From the onboarding process, new employees are given access to documents and reports relating to their job tasks that they can use to their advantage. They are able to see your company’s organizational structure and become familiar with different reporting lines.

All HR and payroll processes are automated and available to employees via their dashboards. They can make adjustments and view their payslips and leave balances from different devices, even while they are at home or on holiday.

Managers are able to track labour costs and take measures to ensure actual labour costs are in line with budgeted labour costs.

Data can be extracted from the system, giving managers the resources to make informed business decisions.

Employees are able to read and accept company policies, while managers are able to manage these policies and make sure their staff is compliant.

All documentation and information is not only digitized but centralized, providing easy access for employees as and when they need them. This also removes all paper-based processes, making paper waste a thing of the past.

If you wish to enjoy these benefits and more, get in touch with us and receive a free demo of our HRIS.

Need more information?

  • This field is for validation purposes and should be left unchanged.