In the digital age we live in, it is no longer enough to have quality employees to run a business. Especially in HR. Today's era brings with it countless systems that can help companies digitise their processes and save not only their employees' time.  

The most commonly used software in companies today includes HR and payroll systems. Their common function is to make company data transparent and secure, but also to support internal company processes. But what is the difference between them?

Personnel system

The personnel (information) system is an organized system used to support human resource management. However, it is also part of the overall information system of the company. Its main function is to process data on employees, which is then used in other company processes.

The HR system is the online link between the HR manager and the employee. Thanks to its digital form, it allows HR managers to do away with stacks of papers and an unorganized database of employees in Excel spreadsheets - replacing them entirely with a clear online platform.  

Employee records in the first place  

The HR system records all the necessary employee data in one place. You will find personal information about employees - personal numbers, dates of birth, addresses, employment contracts, pay slips, organizational structure, medical examinations, training, e-learning, etc.

Thanks to the modules offered by the individual HR systems, it helps with the recording of the broader HR agenda. Do you want to keep track of the assets entrusted to your employees? Do you want to train your employees not only in occupational health and safety? Do you want to educate your employees via e-learning? HR systems can offer all this and much more.

Payroll system  

It is the duty of every company to keep records of its employees' payroll. In this case too, the digitisation of payroll processes is in order, as it can be challenging for a company with multiple employees to process payroll manually and keep records in Excel.

Payroll processing  

The payroll (information) system is often not sufficient by itself, so it is commonly connected to other systems - usually HR, attendance or other systems.  

Unlike the HR system, the payroll system does not primarily record employee attendance or absence, but focuses primarily on payroll processing and recording. Although some payroll systems allow HR to record employees, they are generally not set up to be accessed by employees who would use the system to request leave, view their documents, and more.

Functions that a payroll system should fulfil:

• Wage calculation
• Tax settlement
• Payroll accounting
• Generating documents for pension and sickness insurance
• Generation of pay slips and credit slips

Connect systems and get the best of both worlds

If you want to use the payroll system together with the HR system, use the possibility of linking both systems. The PINYA HR system can playfully connect your systems and give you the best of both worlds - HR and payroll.