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The Pros and Cons of Integrated HR Systems

integrated hr systems
Alexandre Diard
integrated hr systems

One of the most crucial aspects of operating a successful business is managing your employees. However, this does not imply that it is simple. HR software has evolved to meet the demands of a growing diverse workforce, but some companies still rely on connectivity and 3rd party applications/services to get the functionality they require. In this article, we'll take a closer look at HR system integration and how it might affect your business.

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- Why the Future of HRIS is Composable Applications
- How to Effectively Upgrade and Modernize your HR Applications

 

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What Does HR System Integration Entail?

 

An HR system’s main objective is to streamline the HR process by allowing HR management, which includes workforce planning and other corporate decision making.

An HR manager is responsible for a variety of tasks in order to maintain a positive working environment. Human resource management functions are typically divided into three categories:

 

  • Operational
  • Compliance

  • Strategic

 

In today's world, there are thousands of HR systems available on the market, making it difficult to choose one that meets all your business needs. This leaves organizations with multiple systems that address different needs. For this reason, HR system integration is needed to harmonize the entire HR tech stack and make the systems talk.

Integrating all HRM functions brings together all of the actions involved in managing your workforce so that they will work productively and efficiently to achieve the greatest results possible for your business. In other words, aligning your HR system and business strategy is critical to organizational success.

 

 

When Should you Consider HR System Integration?

Integrating any type of software takes time and resources. As a result, it is critical to understand which situations require integration and which do not. Since every situation is unique, your best chance is to examine your specific circumstances to identify the most prudent course of action.

Integrating your HR system is a good idea in the following scenarios:

The current version of your HR system is outdated

Benefits administration, recruiting, and pay management are all included in the most basic HR system. It's likely that the company uses an HR system that doesn't contain all of the features your company requires. If you've made up for it by developing separate systems for other HR functions and don’t have the resources to switch to an all-in-one suite, your organization is an excellent candidate for integration.

You’re looking for the best-of-breed option

Separate apps from several providers may better align with your company's strategy, operations, and regulatory obligations.

Vendors who specialize in a single field, such as workforce management, are more likely to provide a solution with more features. This is due to the fact that they may concentrate their resources and skills on a narrower specialty.  

By integrating multiple best-of-breed systems, you are able to leverage that specialization and reap the benefits of centralization at the same time.

It aligns with your budget

Perhaps you're an organization that requires the functionality of many systems as well as the advantages of HR system integration, but your budget doesn't allow for a single suite of integrated HR solutions.

Or you already have HR systems in place and need to integrate them, but you don't have the funds to upgrade to a provider that can handle everything. 

In these situations, HR system integration might be a viable solution. That way, you may have the perfect blend without blowing your budget.

 

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What Questions Should You Ask Before Integrating?

 

To verify that you're ready to deploy HR system integration, you need to ask the correct questions. Let's have a look at some questions to consider:

 

Q1. Why am I Integrating?

Have a clear goal in mind for your integration project. For example, you may be looking to:

  1. Get rid of data silos that have formed as a result of using various HR software

  2. Boost employee productivity

  3. Give employees a better employee experience

 

Q2. What will it take for a successful integration to happen? 

Make a list of the factors that can have a positive or negative impact on the integration. By initially recognizing and planning for probable setbacks, you will be better prepared for success.

 

Q3. Will I have assistance from the vendor?

You might be able to get integration help from your vendor, depending on your scenario. Relying on your vendor’s solution experts allows your internal IT team to focus their resources on other matters. In addition, the vendor will have a firm grasp on best practices and be aware of the most efficient manner to integrate their product with others thus surpassing a critical learning curve.

 

Q4. Where will I store my data?

There are several options for storing your business data. It is essentially going to come down to what you will use the data for and how. It will also depend on your data management approach and what data sources you plan to pull data from. Many organizations use data warehouses or data lakes to store their data in a centralized place especially when data comes from multiple sources.   

 

 

Types of Integrations to Consider

 

Payroll


Connecting your payroll and other HR systems can help streamline your HR management and analytics.

Every business needs the capacity to process payroll. However, keeping it separate from your HR system’s data means more labor and a higher risk of human mistake. Every change to an employee's information in your HR database must also be reflected in your payroll system. It's easier for details to fall through the cracks when you do everything twice. When the HR system and payroll are linked, the integrated data flows more smoothly.

 

Talent Management System/ Applicant Tracking System


Integrating talent management can result in time savings for your HR team. For example, if it's time to employ and you need to cut down on manual work, you might want to connect your applicant tracking system directly with popular job postings and social media platforms, making it simple to share your openings at the touch of a button.

 

Workforce Management


Scheduling, performance management, and labor tracking are all handled by workforce management software. It's beneficial to have an HR platform integrated to your workforce management system since it acts as a central repository for personnel data and allows you to better report on and manage multiple moving parts.

 

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The Advantages of Integrating your HR Systems

 

Here are a few of the most significant advantages of integrating your HR systems:

 

No more multiple data entry


HR system integration eliminates the time-consuming task of maintaining accurate information in numerous systems. When you add a new employee to your HR system, for example, your LMS is instantly updated. When you add up the time saved for each staff and HR system, it adds up to hours of time saved for your HR team. They may then devote that time to HR initiatives and strategy.

 

Data Consistency

The more you rely on manually inputting the same data into several systems, the more likely you are to overlook a letter or add an additional zero. You'll have better data accuracy since you won't have to enter data into numerous locations every time anything changes.

 

A Single Source of Truth

Having a comprehensive picture of your company is essential for driving business strategy. HR data that is siloed works as a bottleneck because it inhibits you from seeing the full picture and recognizing trends. That difficulty is solved through HR system integration, which provides you with a centralized set of data to update and track. It's then much easier to make better, data-driven judgments.

 

Efficiency in Reporting

Your reporting will be more efficient if you have a central data hub. Reports are only as good as the data on which they're based. You may simplify the reporting process and uncover insights you wouldn't have noticed with fragmented systems by having a single pool of data.

 

Ease of Access


Instead of having to remember several usernames and passwords, users may log in to one system and simply access the other without having to switch back and forth. This is possible with single sign-on (SSO) technology that underlies many integrated HR systems.

 

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