SumTotal Blog

HR Integration Strategy: Is it worth it?

June 26, 2014



Things that are hard: rocket science, organic chemistry and learning a new language (to name a few).

Things that are easy: taking a nap, watching a movie, HR system integration…

Wait, what? HR system integration isn’t easy, is it? With the right plan in place, it sure can be.BigData_Tech

Why is HR system integrations so important?
There is no secret formula out or magic wand out there, only the ability to understand what is going on in your specific HR content, and that requires a big change in the way organizations frame the role of HR. We know from research that organizations that embrace an integrated data approach to human resources experience a 38% higher employee retention rate, 40% higher employee engagement and almost double the revenue for employee.¹  Not to mention, highly engaged employees are 87% less likely to leave their companies than their disengaged counterparts. Pretty strong points, huh?

Now that we know that employee engagement and productivity drive business success, and an integrated approach to HR processes and technologies is one of the best vehicles to accomplish this objective, what are the next steps?

While there are hundreds of benefits your HR organization can realize from data integration, there are few that are essential to building your business case, including:

  1. See data and information in a whole new light. The idea of data as a business prediction tool is not new or novel, but the intensity and sophistication with which it is now being used is quite progressive. Organizations pore over metrics and data trying to sort and categorize what it shows and how it relates to business objectives. Information is everywhere and its sheer volume, variety and influence is demonstrated by the growing popularity and opinions on the term ‘big data’ itself.
  2. Position HR as a strategic business function. With company-wide information at your fingertips, HR can plan for change and make in-the-moment, educated decisions. Now HR has a “seat at the table” and can contribute as a true business partner.
  3. Simplify processes and slash costs. HR is no longer bogged down by overcomplicated, paper-intensive processes. Organizations can focus on quickly recurring and onboarding top talent, as well as investing in employee development and potential. 
  4. Mitigate risk and meet changing compliance needs. An integrated approach allows you to increase visibility into critical business processes for greater control and agility. With full visibility into systems and processes you can set up audit trails to assure that critical steps are consistent and data is safeguarded.
  5. Get ahead of the competition. This goes back to what I said at the beginning – organizations who have an integrated approach to HR data have more engaged employees who in return double the business revenue. Higher engagement plus double the revenue is a surefire way to get a head of the competition. 

See, HR data integration is not as scary as it looks. If you are serious about implementing a strong, scalable integration strategy, I encourage you to read our, 5 Steps to a Successful HR Integration Strategy whitepaper.

Next up…organic chemistry!

 


¹Bersin HR Factbook

 

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