Creating an Integrated HCM System

By Ross Garrett in Enterprise Integration, API Industry Trends Posted Jan 12, 2018

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. 

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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. Or you want to approve a request for time off? You likely need to check the separate project management system to understand project deliverables.

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

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 Human Capital Management 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 is 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 Integration Drives HCM Experiences

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

The value integrated HCM can deliver:

  1. An integrated employee directory should 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 should be 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 should 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 that allows 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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