Managing your people is one of the most essential parts of a successful business. But that doesn’t mean it’s easy.

HR software has become more sophisticated to meet the demands of an increasingly complex workforce, but in some cases, companies turn to integrations to gain the functionality they need.

Today, we’ll deep dive into HRIS integration and its various aspects.

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Article Roadmap

• What Is HRIS Integration?
• When Should You Consider HRIS Integration?
• Questions to Ask Before You Integrate
• Integrations to Consider
• Benefits
• Challenges
• Next Steps

What Is HRIS Integration?

HRIS integration is the process of connecting or linking a Human Resource Information System (HRIS) with other software applications, systems or databases within an organization. Its purpose is to enable seamless data sharing and communication between different HR-related tools, such as payroll software, applicant tracking systems, performance management systems and more.

The concept sounds simple at face value — you connect your HRIS (human resource information system) with other essential HR applications, such as payroll. Right?

While that’s one way to look at it, some vendors use integration to refer to their suite of already connected HR tools.

In other words, you have three options:

• You can get an integrated platform from a single vendor that covers everything from recruiting to benefits admin to analytics.
• You can implement point solutions for each HR process and then integrate the systems to achieve a unified platform.
• You can do a combination of the two.

For understanding and simplicity, we’ll be covering the latter two approaches.

Before we move on, here’s a quick word about integration vs interfacing. If you want to implement HRM integration, be aware of what you’re trying to accomplish and the means you’ll use to get there.

Integration refers to a seamless connection of different systems via API (application programming interface), middleware or iPaaS. Because both systems plug into the same database, data flows from one to another, so they’re always in sync and show real-time data. Any update in your payroll, for example, automatically appears in your HRIS records.

Interfacing still lets two systems share information, but it’s more limited. An interface acts as a link so you can transfer information. The main drawback, however, is that you must do so manually. Interfacing would be more time-consuming if a system processes a lot of data and updates frequently.

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When Should You Consider HRIS Integration?

Integrating any software requires a lot of time and resources. It’s important to know which situations call for integration and which don’t. Every situation is different, so your best bet is to assess your unique circumstances to determine the most sensible path forward.

However, here are three situations where integrating your HRIS is likely a good idea:

If Your Current HRIS Can’t Do Everything You Need

The difficulty with HR software these days is that no single definition tells you exactly what you’ll get.

You have HRIS, HRMS (human resources management system) and HCM (human capital management). Vendors refer to them differently, and their functionality isn’t consistent across the board.

Typically, HRIS is the most basic, including benefits administration, recruiting and compensation management. This article assumes that HRIS refers to the basic HR toolkit that manages people, processes and procedures.

You may have a system labeled “HRIS” that lacks certain capabilities your business needs. If you’ve implemented separate systems for your other extended HR processes and find it challenging or unfeasible to switch to a suite that covers all your bases, your company is a good candidate for integration.

If you’ve made up for that by implementing separate systems for your other extended HR processes and it would be difficult or unfeasible to completely switch to a suite that covers all your bases, your company is a good candidate for integration.

Why not leave every system as-is? We’ll cover benefits a little further down, but suffice it to say that integration will help your HR management run more smoothly.

Basically, if you’re operating in different systems today, you likely run into double entry, data errors, lack of visibility and a whole host of issues that come with siloed systems. Integration is the answer to those problems.

If You Want To Go the Best-Of-Breed Route

Vendors commonly preach the value of fully integrated software suites — seamless data access, 360-degree visibility and other perks create a unified, holistic environment.

That doesn’t mean implementing all-in-one software will be the best route for your organization. Using separate applications from various vendors may fit better with your business strategy, processes and architecture.

Vendors specializing in one area, such as workforce management, likely offer a tool with deeper functionality. They can focus their resources and expertise on a smaller niche.

Choosing point solutions for each HR process means you get the best of each. That said, it’s not impossible to achieve the same result if you choose a single platform.

The industry has shifted as bigger vendors like Oracle acquire best-of-breed solutions to sell HR suites without sacrificing deeper functionality. But that doesn’t guarantee that each module in a vendor’s suite will reach the standards of individual point solutions.

As always, use your company’s requirements as a barometer to measure what you need to accomplish and how best to do that.

Thanks to APIs, apps and an increasing emphasis on integration standards, piecing together your suite of HR applications isn’t as hard anymore.

However, you still have to work on implementing and running each system and integrating them with your HRIS for greater cohesion.

Bottom line: weigh your company’s priorities before starting.

If It Fits Your Budget Better

Maybe you’re a small business and need the functionality of several systems and the benefits of HRIS integration — but your budget isn’t big enough for a single suite of integrated HR tools.

Or maybe you already have HR systems and need to connect them but don’t have the budget for a massive upgrade.

In either case, considering HRIS integration may be a good option. That way, you get the best of both worlds without decimating your budget.

Questions to Ask Before You Integrate

Before you rush a proposal to the executives, you must thoroughly map out the integration journey.

It’s one thing to build a convincing business case — another to push for integration because it sounds innovative and digitally transformed.

Before implementing HRIS integration, you need to ask the right questions to ensure you’re prepared. Let’s consider some good questions:

Why Are You Integrating?

In other words, what’s the motivation? HRM integration won’t benefit you unless it’s rooted in a clearly defined purpose. Some good reasons could include:

• Removing data silos caused due to running multiple HR applications
• Increasing staff productivity
• Centralizing information and employee access

Collect input from key stakeholders and develop goals based on your priorities. It’s essential to get feedback from your HR staff and others who regularly use your systems — their insight will give you the full picture of pain points and areas where you can enhance processes.

What Will It Take to Pull off a Successful Integration?

List all the elements that impact the integration. You can’t expect to have a successful integration without first identifying and planning for potential setbacks.

We’ll talk more about integration challenges below, but you also need to know where things stand for your business today:

• What current processes do you have?
• Which teams are responsible for upkeep and data management?
• If you have an enterprise integration strategy (EIS), how does it play into your HRIS integration?

By looking in detail at your organization’s current state, you can accurately predict where and how integration will influence everything going forward.

You also can’t overlook the people aspect of integration. Consider what it will take to equip your teams to adjust to the new processes. The complexity of the change will determine how much training they’ll need, if any, once you roll out the integration.

How Will You Measure Success?

Define what success means for your company and make sure you have a way to measure it post-integration. If, for example, one of your goals was to reduce manual data entry by 20%, you need a before-and-after snapshot to know you achieved that goal.

What’s the Best Timing?

“Right now!” may seem like the best answer. But in reality, ensure that the timing of your integration won’t interfere with other company initiatives.

You’ll need to devote time and people to running an effective integration. It’s essential to avoid a battle of priorities. If your IT team is upgrading your website platform over the next month, that’s probably not the best time to add HRIS integration to their plate.

Will You Receive Support From the Vendor?

Depending on your situation, you can turn to your vendor for integration support.

The biggest advantage is that the additional help will ease the burden of your IT team. Plus, the vendor will bring a solid understanding of best practices and know the most effective way to integrate their solution.

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Integrations to Consider

For this article, we’re staying in the HR realm (though there are other useful integrations you can make with HR, such as finance or ERP).

One caveat before we get started: this list won’t apply to all situations. Your exact list will depend on your business needs. So take this as a guideline to inform your HRIS integration.

With that settled, here are four integrations you should consider:

Payroll

Let’s delve into payroll software — connecting your payroll processing and HRIS is an important step in gaining streamlined HR processes.

Every company needs the ability to run payroll. But separating it from your HRIS data means extra work and a greater potential for human error. Each update to employee information in your HR database needs to also occur in the payroll system.

Doing everything twice makes it easier for details to slip through the cracks. Connecting HRIS and payroll creates a seamless data flow.

In some cases, an HRIS will already offer payroll capabilities. However, you’re less likely to find solutions with built-in features that adequately encompass global payroll. Differences in compensation standards across multiple countries and currencies make global payroll a tall order. Imagine the difficulty in handling that if your payroll tool doesn’t sync with your employee database.

Basic payroll features won’t support such complexities, so you’ll need to modify certain fields to account for the unique demands of each country. The system must also account for regulatory requirements, such as GDPR, and incorporate local tax laws.

Some payroll vendors sync with the top HRIS platforms, which lets you benefit from their integration best practices and simplifies the integration process.

Applicant Tracking System

Next up, applicant tracking systems (ATS) — a subset of talent management that revolves around recruiting and retaining employees.

While ATS tools are fairly common in HRIS solutions, top vendors such as Namely, Zenefits and BambooHR also offer ATS integrations. These integrations provide flexibility to create an HR ecosystem that works best for your company.

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Workforce Management

Third, we have workforce management integration. WFM software handles scheduling, performance management and labor tracking. Since an HRIS platform serves as your central warehouse for employee information, connecting this to your workforce management solution is helpful.

Learning Management System

Learning management software has become increasingly popular (and important) as companies strive to equip employees to excel.

LMS features include various learning methods, gamification, reporting and analytics. Since employees study for certifications, take quizzes that test their knowledge and more, keeping track of their progress is valuable.

Syncing an LMS platform and HRIS lets you automatically maintain an up-to-date employee record. This capability also simplifies generating in-depth reports.

Primary Benefits

If you invest the time and resources to integrate your HRIS with other key HR systems, you’ll reap a wealth of benefits. Here are some of the top advantages:

• No More Double Entry: HRM integration removes the work of maintaining clean records across multiple systems — translating to hours of saved time for your HR staff. For example, entering a newly hired employee into your HRIS automatically updates your LMS.
• Consistent Data: With your systems integrated, information will automatically flow from one source to another, reflecting every update in both locations. You only need to enter information once, and it reduces errors. Your HR staff won’t waste any time finding and fixing those discrepancies.
• A Single Source of Truth: Driving business strategy involves having a complete view of your organization. HRIS integration solves the siloed data problem and gives you a set of data to update and track. From there, it’s easier to make smarter, data-based decisions.
• Efficient Reporting: By creating a single information pool, you can simplify the reporting process and gain insights you wouldn’t have seen with disparate systems. For example, tracking your employee information during the onboarding phase. LMS and HRIS integration removes barriers to uncover any skills gaps.
• Easy Access: Consider this:
  • Single Sign-On (SSO): Instead of tracking usernames and passwords for several platforms, users can log in to one system and easily access the other without toggling back and forth.
  • Employee Self-Service (ESS): When integrating payroll and HRIS, your employees can view their pay history, control their direct deposit settings and more.
• Compliance: Staying compliant with the numerous rules and regulations is hard enough already. Add errors and systems that don’t talk to each other to the mix and you’re in a mess. For example, if you’re running global payroll, you must comply with several laws. With integration, the system considers all the relevant information, and automation dramatically reduces the chances of errors.

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Key Challenges

Challenges are as much a part of software integration as injuries are in sports. However, proper planning goes a long way in reducing their potential. Here are some challenges to remember:

• Lack of Resources: Rolling out an integration requires significant time, money and extra work. The additional workload could easily overload employees, especially when viewed within the business.
• No Tech Standardization: If there isn’t any standardization, such a significant update could affect the software in other departments. For example, with integrated HRIS and legacy ERP systems, you need to ensure integrating a payroll solution with HR won’t conflict with your current setup.
• Resistance to Change: Just because the execs sign off on an integration doesn’t mean everyone will agree. With all the hype about AI replacing workers, implementing an integration to streamline workflows could cause employees to worry about downsizing.
• Slow Adoption: The fact that HRIS integration offers benefits doesn’t make adoption automatic. On top of that, the system needs to be user-friendly, or it may cause frustration and hinder your employees’ productivity.
• Department Clashes: There may be tension if your integration combines two previously separate departments. They have different processes and systems, so combining them could be difficult.
• Lack of Training: If you’ve had the same processes and procedures for a long time, switching to the new method will take employees some getting used to. Without training, users are much less likely to master and feel good about using the new setup.
• Dirty Data: It doesn’t mean your data got dragged through the mud. It means it has errors. For example, they probably have inconsistencies if you previously had separate payroll and HRIS. It’s important to clean your data up before integrating and run audits to prevent errors from slipping in.
• Technical Issues: Outside of bad data, technical problems can arise during implementation:
  • If you’ve configured your HRIS using custom fields or workflows, for example, that can complicate the integration process. Even if your HRIS system has built-in APIs, such modifications might require a customized integration, which requires IT expertise.
  • In the case of payroll, the system requires a lot of different inputs from your HRIS, including employee names, addresses, type of pay and more. In addition, the payroll platform may require data to be a certain way. You’ll run into trouble if you don’t map those relationships.
  • You may also face obstacles integrating an on-premise solution with a SaaS product. Difficulties include differences in data structures, latency, API constraints and loss of data integrity.

By preparing ahead for these challenges, you’ll make it easier for your HRIS integration to run as smoothly as possible.

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Next Steps

HRIS integration is a significant undertaking. It’s important to ensure that you reap the rewards for your efforts. Asking questions before integration will help identify your goals and how to reach them.

If you’re looking to upgrade your current HRIS or are still searching for the right software to implement (great job being ahead of the game!), we’re here to help. Finding the right solution isn’t easy, so we’ve compiled a handy HR software comparison report to simplify your search.

Your people are the foundation of your success. Give them the right HR software, and it will empower them and strengthen your business.

What HRIS integrations are you considering? Share in the comments!