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Why You Need an Integrated HR System

Why You Need an Integrated HR System

By Easeworks / October 17, 2023 /
PEO HR technology

From managing remote work to driving better talent outcomes, HR teams juggle an array of point solutions for recruitment, learning, performance and more.  

But is this fragmented approach the most effective?

Before diving into integration strategies, let's examine the key considerations around evaluating your HR tech stack.  

Which systems offer the specialized functionality you require? Do they operate cohesively? Can your staff navigate the technologies efficiently?  

The answers lie in understanding both the advantages of consolidation and the risks of further fragmentation. Only then can you determine the best path forward. 

But how do you choose between integrated platforms versus specialized systems? 

How do you choose between Best-of-Breed vs. Integrated HR Software? 

With best-of-breed solutions, each system is tailored precisely to one HR function. This allows for exceptionally robust features and customization. However, these systems operate independently, placing the burden of integration on your team. An integrated HR suite delivers standardized processes on a shared infrastructure. But it risks sacrificing the depth of customizable options standalone systems can provide. 

When weighing your options, focus on four key considerations: 

  • Your current HR systems - Do they satisfy all requirements or are new functionalities needed? 
  • Top business priorities - Will integration enhance efficiency and productivity? 
  • Budget and resources - Can you support the maintenance of disparate systems? 
  • Data strategy - Is centralized, consistent data a priority? 

There is no objectively right or wrong model. Analyze your specific needs, capabilities, and limitations to determine the optimal balance of integration and specialization. 

Now that the tradeoffs are clearer, which specific system integrations should you prioritize?  

What types of integrations should you prioritize? 

Integrating key HR systems unlocks major efficiency gains and provides complete workforce visibility. There are four integrations in particular that increase productivity: 

Payroll Integration 

Integrating your payroll platform with your broader HR system enables seamless transfer of employee salary data between the two. This eliminates the need for manual re-entry of data, reducing compliance risks and errors. Automated payroll integration also enables real-time salary updates based on HR data, streamlining payroll reporting. 

Recruitment System Integration 

Connecting your recruitment software or applicant tracking system to your HR system carries candidate information directly into employee profiles. This provides continuity from the hiring process into ongoing employment in a unified system. Recruitment integration reduces repetitive administrative hiring tasks while giving managers full visibility into their team's hiring journey. 

Learning Management Integration 

Integrating learning management software centralizes all employee training data in one accessible platform company-wide. This allows for unified tracking of training completion rates, certifications earned, and skills gained across the workforce. Learning management integration also enables employees to easily self-serve training opportunities for maximized development. 

Workforce Management Integration 

Workforce management integration is interoperable across scheduling, time and attendance tracking, and other capabilities. This aggregation of data provides optimized visibility into labor costs, absences, shift coverage, and more. Managers can use real-time workforce analytics from an integrated system to make data-driven scheduling, staffing, and productivity decisions. 

Together, these four targeted integrations eliminate the productivity lag caused by data silos and manual workflows between disparate systems. An integrated HR platform with automated data flows is the catalyst for an efficient, frictionless HR ecosystem. 

Now that the benefits of key integrations are clearer, what overarching advantages can you expect from an integrated HR system? 

What are the advantages of integrated HR systems? 

The advantages of an integrated HR system make a compelling case for consolidation. By uniting your tech stack, you gain: 

  • Time savings from one system compared to toggling between logins 
  • Time savings with information flowing freely rather than duplicated manually 
  • Automation of workflows like new hire onboarding across modules 
  • Compliance benefits from centralized, secured employee records 
  • Enhanced reporting with a unified data set 
  • Visibility across the employee lifecycle from recruitment through ongoing employment 
  • Ease of use for staff with single sign-on access 

An integrated platform streamlines HR processes, provides accurate analytics, and drives productivity by eliminating disjointed systems and data silos. 

While the benefits are significant, there are also challenges that come with integration. What considerations should you account for in your plans?  

What are the drawbacks of integrated HR technology? 

While integration delivers immense value, it also comes with potential pitfalls to evaluate: 

  • Integrated platforms may lack deep customization capabilities of specialized systems 
  • Modifying integrated systems can be more difficult compared to standalone software 
  • Reliance on a sole vendor's proprietary integrations can limit flexibility 
  • Upfront investment may be higher than continuing disjointed systems 
  • Migrating legacy platforms and data into a new system carries risk of disruption 

Carefully weigh these challenges against the benefits before moving forward with an integration strategy. Thorough planning and strong project management are key to a smooth and successful implementation. 

Speaking of implementation, what steps should you take to deploy an integrated HR system effectively? 

What are the best practices for implementation? 

For companies choosing to pursue HR system integration, careful planning and execution is required for a successful rollout. Conducting a comprehensive audit of your existing HR technologies and data sets allows you to identify any legacy platforms and information that should be consolidated or cleansed before migrating into a new unified system. This data hygiene reduces complications down the road. 

Involving departmental stakeholders early in the process ensures alignment on objectives across your HR team. Set clear success metrics and milestones for the project and establish well-defined roles so all members understand their responsibilities. Invest time upfront in extensive training programs and support resources to equip employees using the new integrated system. The learning curve will be minimized with robust guidance. 

Also, be sure to create contingency plans and backup measures in case any setbacks arise during the transition. Unexpected challenges can derail integration projects without the right back-up protocols in place. Extensively test the new system before full deployment to minimize disruptions to operations. With careful planning and testing, you can overcome common hurdles. 

An alternative option is partnering with a professional employer organization (PEO) that provides integrated HR software and services as a complimentary addition to the outsourcing of HR tasks. This lifts the burden of HR administration and technology from your team.. 

Looking ahead, what is the future outlook for HR system integration and technology? How will these continuing innovations shape a more unified HR experience? 

What is the future of integrated HR software? 

The future points to accelerating innovation and interconnectivity in HR technology: 

  • Demand is growing for a truly unified HR experience as employee expectations evolve 
  • Advancements in analytics and AI will enable more robust workforce insights and automation 
  • Expansion of self-service portals will empower employees and managers 
  • Increasing integration between HR systems and broader business technologies 

Forward-thinking organizations are focused on developing HR infrastructure that delivers continuity and intelligence across systems. While specialized capabilities remain important, the broader benefits of ecosystem integration are simply too powerful to ignore. 

What are the key takeaways on HR system integration? 

The case for integrated HR systems is clear. While specialized systems remain crucial for particular capabilities, the benefits of consolidation are too significant to overlook. Unifying your HR technology ecosystem breaks down data and process silos, enhances efficiency through automation, and provides comprehensive workforce analytics. 

An integrated platform also creates frictionless employee experiences and eases administrator workloads by removing the need to toggle between systems. 

Potential risks like lack of customization and change management challenges do exist with integration, but thorough planning and project management can help mitigate these hurdles.  

However, an alternative to procuring and implementing your own integrated HR system exists. Instead, you can partner with a PEO that provides integrated HR software and services as a package, lifting the technology burden from internal teams. 

In fact, some of the top integrated HR systems were developed by PEOs specializing in HR tasks. For example, the popular integrated HR software Prism HCM was originally created by the founder of Easeworks, a PEO specializing in empowering business growth. This exemplifies how the deep HR expertise within leading PEOs has produced powerful integrated platforms purpose-built for simplifying HR complexities. 

The advantages of integration will continue growing as technology progresses. Developing a strategy focused on interconnectivity sets up HR infrastructure for scalability and intelligence into the future. Evaluate your technology pain points and opportunities to determine where to start integrating. 

With the right approach, you can transform your HR operations. 

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