Creating an Integrated Human Capital Management (HCM) System

By Ross Garrett in Enterprise Integration, API Industry Trends Posted Dec 3, 2019

Disconnected business applications have always created barriers for employees across any organization. Yet as many disciplines have been improved, and integrated, HR systems have remained siloed. 

What’s needed is an integrated HCM system that lets people perform their employee-related tasks without moving between environments or taking users out of context.

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With few exceptions, not many people spend most of their time working directly in the HR system - and as a result, these systems are often completely disconnected from business processes across other parts of the business. For example, you need to get approval for a purchase order but the approver is on vacation, you will need to know their manager. Often this means, you must move over to the employee directory or org chart, find the person’s name, title, and email, then switch back to the PO system.

Fragmented HCM Ecosystem

capterra-hr-industry-landscape-infographic_600.pngAccording to ADP, global employers currently manage an average of 33 payroll systems, and 31 HR systems. And in an age of disruption, these numbers are getting larger - business and HR leaders are being pressed to rewrite the rules for how they organize, recruit, develop, manage, and engage the 21st-century workforce.

This workforce is changing. It’s more digital, more global, more diverse, and technology savvy. While this could be seen as a challenge, it should be seen as an opportunity. An opportunity to reimagine HR, talent, and organizational technology. An opportunity to create platforms, processes, and tools that will continue to evolve and be extended with new “best-of-breed” applications over time. An opportunity to take the lead in transforming how your business and your team views HR.

To make the most of this opportunity, integration is key to reimagining HCM because, at its core, modern HCM is about accurate and integrated data.

The vendor landscape is undergoing a seachange: A new breed of HCM products and solutions are coming to market, many built around mobile apps, AI, and consumer-like experiences. As digital HCM takes hold and HCM products become more platform-based, all users are becoming empowered to reach levels of efficiency not previously possible.

(PHOTO CREDIT: CHIEFMARTEC HR SOFTWARE LANDSCAPE 2017)

How Integrated HCM Drives Experiences

Building an integrated Human Capital Management experience will be a journey where existing silos must be broken down. As solutions are distributed across best-of-breed applications rather than in a single HR application suite, new integrated experiences are not only possible - they’re needed.

4 Ways Integrated HCM Adds Value:

  1. Integrated Employee Directory

    Provide a quick and easy way for employees to find the needed information to contact the right person at the right time - without switching context from the task they are trying to complete.
  2. Payroll

    Make it a full-service system tightly integrated to ERP and accounting systems features so employees’ time entry, attendance, and commission data translates directly to their payroll with no manual data re-entry.
  3. Integrated time-off management

    Automate employee time-off requests and approvals, with a 360-degree view of business demands that may need to be considered when reviewing PTO.
  4. Compensation tracking

    Allow organizations to integrate compensation details such as earnings , pay frequency, overtime rate, and any variable compensation such as bonuses, or stock options.

By defining a world-class HCM strategy and implementing the right integration platform, any size business can become a more effective organization that better leverages its most important differentiator and asset – its’ people! 

At the center of this journey is creating a holistic view of the employee data your organization cares about.

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