Exploring the Differences Between Integrated and Single HCM Systems

Remaining efficient in HR management is becoming more and more challenging. Whether you are faced with compliance demands for a specific industry, are looking for ways to improve efficiencies with a diverse workforce, or want an easier onboarding process, it all lies in the type of human capital management (HCM) technology you use. HCM technology continues to become more popular as it allows HR teams and department managers to actively glean insights about how their teams impact the business. However, it is often unclear what works best, a single HCM or integrated system.

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Here we compare your options to help you decide which is best for your future growth.

Integrated vs Single HCM Systems

When looking at the basic differences between the two, an integrated system brings together existing applications used in the organization, while a single HCM system is more of a cohesive solution. The latter is created using a single codebase that links each employee record across all the HCM modules you use. With an integrated system, therefore, you are working with standalone applications, whether it is workforce management, onboarding or payroll databases that then have to be merged. This can lead to issues as you are bound to experience disconnects. A single HCM system, on the other hand, provides more control through a completely streamlined system for consistencies across all of these entities. As a result, it becomes far more efficient, not to mention more user-friendly, on both the front and back ends.

Tackling Software Updates

Another major challenge organizations commonly face is keeping up to date with software. In the case of an integrated system, you are constantly facing updates, often on a disparate schedule with each entity requiring updates at different times. As each update occurs, it can lead to compatibility issues that can easily lead to access and functionality speed bumps. The single HCM system requires a single update for immediate improvements with minimum disruption during the upgrades. This also reduces the risk for end-user problems.

Assessing Integrated and Single HCM Systems

So what should you be looking at when evaluating a system? Here are some of the most important features that impact the efficiency and effectiveness of your HCM:

Real-time Capabilities

Real-time data allows you to keep up to date with the things most important to your organization’s HR processes. The two most important elements are:

1. Payroll: Your HCM system should be able to provide Real-time payroll that is compliant with your industry requirements. A single HCM system can calculate pay in real-time whereas an integrated system usually uses batch processing where these calculations are only available at the end of a pay period.
2. Scheduling: Viewing and managing employee schedules and labor costs in real-time allows you to ensure you are optimizing employee efficiency by reducing and increasing employee hours as required. Single HCMs allow you to easily watch the maximum allocated overtime hours for each team member so you can deny further overtime. You can also make sure each team member receives an equal opportunity to contribute. As well, you remain compliant with regulations regarding maximum overtime limits. An integrated system tends to be limited in its ability to provide real-time data and instead uses end-of-shift batch processing which comes in too late to react.

User Interface Consistency

Next, what can often prove to be a real-time waster is forcing employees to struggle between the different interfaces used with an integrated system. With a single HCM, you have an easy-to-use interface that uses a simplified “dashboard”. The dashboard allows employees to easily find the tabs they need and can quickly access the information they require. This allows HR teams to free up more of their own time, as you have a self-serve system so employees can manage everything from their own schedules to benefits.

Customization is Key

When it comes to HCM systems, customization is truly the key. “Customizing” may sound complicated, but often it actually leads to the system functioning more simply for your organization because the capability allows for the expert team handling your implementation to set up the system in a way that works best for your organization. Customized HCM software developers take the time to assess your needs so you can create the right customized solution. Your goal is to automate workflow so you can meet need across all elements of the business and gain efficiencies in:

• Onboarding
• Performance reviews
• Payroll and taxes
• Scheduling and time tracking
• Benefit implementation

With a customized HCM system, you can take the best of the processes you currently use and make improvements across the board. You can then ultimately execute those processes with greater efficiency. Organizations can finally overcome poor implementation and develop a responsive system that makes it easier for teams to perform their roles. Learn more with Paypro.   

About the Author

Kayla is the Marketing Manager at Paypro Corporation overseeing all inbound and outbound marketing and sales efforts. She has 7+ years of experience working within the B2B and SaaS based solutions space and thrives on creating messaging and campaigns that introduce products and services to those who need them most.