What is the most important thing in running a successful company? Is it money, your product, or anything else? The answer may be different for each individual. However, one thing in common for a company to be successful is managing its employees.
A study by Gallup’s employee engagement survey shows productivity improves by 14% when employees are enthusiastic about their roles.
While HR software has developed to suit the needs of an increasingly diverse workforce, some businesses still depend on connection and outside apps/services to gain the functionality they need. We’ll examine HR systems integration in more detail in this post, along with potential business implications.
What is the Primary Goal of HR System Integration?
An HR system focuses on reducing the workload of HR and streamlining the process, which includes workforce planning, onboarding of employees, etc. Every HR manager in a company is responsible for maintaining a positive work environment.
As of now, there are various HR systems available in the market. Selecting a system that meets all the business requirements becomes tricky. Companies in the end are left with multiple systems for different needs.
Here, HR system integration comes into play. It is required to systemize the HRTech stack and make the system customizable, easy-to-use and scalable.
All of the activities involved in managing your staff to ensure that they operate effectively and productively to produce the best outcomes for your company can be combined by integrating all HRM operations. Put differently, effective human resources management and organizational success depend on the compatibility of your HR system with your business strategy.
When to Choose an HR System Integration?
Integration of software into your system is a time-consuming process. It requires a proper understanding of which system is needed in priority and which is not. Below are some scenarios, to identify your next course of action.
1. The present HR System is outdated
Recruiting, payroll, and benefits administration are common options in a basic HR integration system. Many companies use an HR system that has only some of the features.
Your company is a great candidate for integration to upgrade to a program where all of your systems are connected into one if you’ve made up for it by creating separate systems for other HR services and lack the resources to convert to an all-in-one suite.
2. Best of the Breed option
There are various vendors available in the industry, each having its specialization. Vendors who are experts in a particular area such as payroll management, might offer a solution with additional features. Through this approach, you can leverage the primary specialization and gain the advantage of centralization.
3. Aligns with your budgetary requirements
Your budget might only allow for one integrated HR solution suite, but your business may require the advantages of HR system integration in addition to the functionality of many systems. In this scenario, HR system integration would be a viable option.
What Type of Integration Should You Consider?
1. Workforce management
Workforce management software handles worker tracking, scheduling, and performance management. Integrating an HR platform like UKG with your workforce management system is beneficial since it serves as a central repository for employee data and simplifies the handling and reporting of numerous moving parts.
2. Payroll management
Connecting your payroll and other HR systems might help to improve your HR management and analytics. Every business must have the ability to process payroll. However, keeping it distinct from your HR system data requires more labor and increases the chance of human error.
Every update to an employee’s information in your HR database must be reflected in your payroll system. When you repeat everything, details are more likely to slip through the gaps. Payroll and the HR system working together improves the flow of combined data.
3. Talent Management System
Your human resources team can save time by integrating talent management. One option would be to incorporate your applicant tracking system directly with well-known job boards and social networking sites for recruitment marketing so that advertising job opportunities is as easy as clicking a button when it’s time to hire and you need to reduce manual labor.
You can leverage integration services for your talent management system. Their AI/ML-driven systems allow you to deliver personalized experiences and drive workforce agility.
Benefits of HR System Integration
Below are some of the advantages of integrating HR systems.
1. Easily accessible
Instead of remembering numerous usernames and passwords, users can log into one system and access the other without moving between them. Single sign-on (SSO) technology, which is the foundation of many integrated HR operations, makes this possible.
Simple, on-demand management tools, like single sign-on, can assist in streamlining the numerous tasks that must be completed each day by reducing waste of time and enhancing security.
2. Elinimates multi-tasking
Integrating several HR systems saves time by removing the need to maintain accurate data across many systems. The second an employee is added to your HR system, your LMS is updated. Your HR team will have saved hours when you total up the time saved for each employee and HR system.
3. Data Consistency
The more time you spend manually entering the same data into numerous systems, the greater the chance you may miss a letter or add an extra zero. Data accuracy will increase because you won’t have to enter it repeatedly when something changes.
Employees will also benefit from the system being more self-service since they will have access to all the data they require without consulting several sources of information. Additionally, doing away with paperwork, can improve the employee life cycle process and provide employees more time to handle more pressing issues rather than constantly entering information.
4. Single Source of Information
Effective business strategy is driven by having a clear vision of your organization. Segregated HR data makes it harder to see the overall picture and notice trends, therefore acting as a bottleneck. HR system integration provides a consolidated collection of data to track and update, resolving that difficulty. Making better, data-driven decisions becomes a lot simpler as a result.
5. Enhanced reporting
A central data hub will help you report more efficiently. The data on which reports are based determines their quality. By streamlining the reporting procedure, one can find insights that fragmented systems would have missed.
A performance management system comprising a single cloud solution will improve your understanding of time and attendance, performance management, resource planning, time tracking, and payroll processing. These are data sources, and collecting and analyzing them is critical.
Conclusion
The use of an integrated HR system has numerous benefits and drawbacks. Some will center on the HR metrics you wish to use and evaluate for your HR data, while others will be centered on what your organization and employees require to achieve their goals.
It can be accomplished by using an HR system to automate processes. Some negatives include the expense and effort involved in figuring out what your company needs to execute the best HR practices to consolidate all data and increase efficiency everywhere.
