Using technology, and specifically HR systems, is a great way to manage people data and processes but sometimes that can go too far and your business actually ends up overcomplicating things and creating more work and problems than you had when everything was done manually. A 2017 study showed that large businesses use approximately 90 different systems and cloud services to manage a range of staff data. The mind boggles! These different systems can include things like a payroll system, a benefits platform, an online wellbeing service, a training system, an applicant tracking system for recruitment and so the list goes on, and on. Using so many different systems though is a real headache for businesses, and their employees, before you even start to factor in the cost and so an integrated HR system that brings as many of these stand alone systems together as possible is hugely beneficial for all concerned.
Integrated HR System Benefits
Increased Data Accuracy – Storing data in different systems is simply storing up trouble. The more systems you use the more chance you have of ending up with inaccurate or out of date data. Errors will occur in data entry, data might be updated in one system but not another and if systems are unconnected and don’t talk to each other via an application programming interface (API) then the integrity of your data will be compromised. You may also be compromised in terms of compliance with GDPR. These regulations have seven core principles, one of which is data accuracy. The regulations specifically state that, “Personal data shall be: accurate and, where necessary, kept up to date; every reasonable step must be taken to ensure that personal data that are inaccurate, having regard to the purposes for which they are processed, are erased or rectified without delay”. An integrated HR system therefore will improve data accuracy, minimise the risk of errors via duplicate entry and through self-service functionality will enable employees to regularly check that their data is correct and if it isn’t to update it themselves quickly and efficiently.
Greater Efficiency & Productivity – One of the principal drivers for using technology and HR systems is to streamline HR administration processes and in turn to then improve the efficiency and productivity not only of HR staff but other employees who can you the system to take care of all their HR related needs. When you have an abundance of different systems though then more time is spent by employees navigating between them, logging in and trying to find what they want as maybe they’re confused and not even in the right system, they may even stop using the systems all together. Efficiency and productivity therefore reduce and the systems don’t actually deliver the benefits you wanted. By having an integrated system it is clearer for staff and they have a much better user experience. Self service functionality with a single log in to access everything employees need such as important documents, make holiday request and access other HR related information will drive efficiency and productivity up as staff spend less time working their way through different systems and more time doing their day job. An integrated HR system is also far more preferable for HR teams as they only have to learn how to use one system, this reduces the need for them to provide support to colleagues across multiple platforms and means that they spend more time dealing with HR matters than can make a valuable difference to their business.
Improved Reporting – HR teams are often asked to provide a range of reports to managers and decision makers within their business. The reports can be about a wide range of HR related topics from salary information, to sickness absence data and staff turnover rates. If you have to use multiple HR systems and data sources to collect the information you need then that is time consuming and increases the risk of data being inaccurate. Given that key business decisions can be made on the basis of the data provided in these reports it is absolutely crucial that they are accurate. Decision makers also often want ad-hoc reports frequently and having an integrated HR system again provides for this to be done quickly. Rather than spending time crunching numbers and messing about with spreadsheets and formulas, HR teams can actually be involved in the decision making and then help the business to implement any actions which might be needed.
Cost Savings – Technology is not cheap and so it follows that the more systems you have the greater the cost to your business will be. Many HR systems will change an initial set up and implementation cost, they’ll then charge each month, usually based on employee headcount, and there may also be annual maintenance fees or support costs to factor in as well. The numbers quickly add up and before you know it the savings you projected are being eroded and HR becomes a real cost to a business. By doing away with multiple systems and moving all your HR needs into a single integrated system you will save your business a significant amount of expenditure.
HR systems then are a great way to improve your business on a number of levels, there are many systems on the market so it is important to understand what your company needs and then research which systems will best meet those needs.
Do you have any questions about today’s blog, need help in becoming legally compliant with contracts/policies or can we support you in taking away any people pains to give you peace of mind?
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Why not also check out last weeks blog Is SOSR Considered Disciplinary Action?
We also have a YouTube channel with loads of handy videos outlining various HR related scenarios.
