10 Reasons Your Business Needs an Integrated HR System

Nikita Agarwal

Nikita Agarwal

Senior editor

Parul Saxena

Chief editor

Last updated: July 6, 2021

The use of HRMS, or human resource management system, is on the rise. In fact, the global HRMS market is expected to grow to $30 billion by 2025.

A fully-integrated HR system is a set of applications that offers a wide range of HR functions in a single platform. This HR system can help you with database management, time and attendance management, payroll management, and recruitment management.

It automates various functionalities, thereby taking the bulk of the administrative tasks off of the HR managers.

A recent survey found that 54% of companies are increasing their spending on HR technology, and all for the right reason.

Looking for HR Software? Check out SoftwareSuggest’s list of the best HR software solutions.

If you still haven’t started using an HR system for your business, you shouldn’t delay any further.

You will find both low-cost as well as high-cost HR solutions for your business. Let us look at some of the top reasons for implementing an integrated HRMS system into your company.

Top Reasons For Implementing An Integrated HR system

1. Saves You Extra Time

The use of different applications for various services creates confusion, especially for employees.

Besides, collecting data from various sources and merging them into one to analyze can be a time-consuming process eventually hindering productivity.

With an integrated HR system, you bring everything under one platform – from attendance tracking to payroll calculation and compliance reporting.

Employees need to log into just one system and view all key information about their current leave status, attendance count, etc. It saves a lot of time and hassle for an HR manager.

2. Increases Work Efficiency

When you use a single system, you have a much greater scope for automation. You can minimize the number of manual intervention needed to complete a process and create a standardized workflow process.

Having a standardized process streamlines the entire HR administrative task and eliminates stress. An integrated system provides you with a single set of data, which enables an easy flow of information. Any update or edit is synced in real-time.

This results in increased work efficiency while also removing rooms for error and duplication of tasks. Besides, there is no need for additional integrations to sync data across different systems.

3. Improves Data Accuracy

With multiple systems, more personnel are involved in entering data from one system to another. No matter how carefully it is done, it is still subjected to human errors.

An integrated system may not be able to rule out the possibility of human error entirely, but it vastly reduces it. It simplifies data entry, and the fact that data only has to be entered once into the system drastically improves data accuracy.

You can have up-to-date information about your employees in your database.

4. Makes Compliance Easy

One of the primary roles of an HR manager is to ensure compliance within the organization. Failing to do so can result in hefty fines and penalties.

With so many things on an HR manager’s plate already, an integrated HR system can come in handy.

Best human resources tools automate the process of compliance and allow you to schedule reminders when compliance forms are due. It sends out an alert in case there is any breach of guidelines and regulations.

Furthermore, the system requires employees to digitally accept all compliance-related communication, ensuring they are aware of these regulations. In fact, you can even deliver compliance training with it.

5. Increases Payroll Accuracy and Timely Payment

If you want to keep your employees happy, you need to ensure timely payment. Not only that, but the amount also needs to be accurate.

While calculating salary, you also need to take into account various factors like tax dedication, benefits, unpaid leaves, commissions, and much more.

Also Read: Free Payroll Tax Calculator for Employers in 2020

When humans have to manually calculate the salary amount, it increases the chance of error. Besides, it might result in delays sometimes in case any emergency work comes out.

But when you use an integrated HR system:

i. You don’t have to collect inputs from different systems

ii. It automatically calculates the salary amount with utmost accuracy

iii. You can schedule timely payment directly into your employees’ bank account

6. Provides Real-time Reporting and Analytics

The role of HR is not only limited to making salary payments on time. An HR has to determine various factors such as hiring cost, hiring cycle, cost per employee, etc., and measure its effectiveness.

Most HR systems come with in-built reporting and analytics tools. You can easily track and measure the key metrics required to manage people. Besides, you can generate reports in real-time.

With disparate systems, the collection and aggregation of data can be a time-consuming process. Thus, it results in delayed reports. And by the time the reports get ready, the information has already been updated.

An integrated system gives you the opportunity to work with a single set of accurate data. It allows you to generate and analyze data much faster and make smart decisions in less time. It certainly gives you an edge over your competitors.

7. Improves Employee Feedback and Performance

When the time and attendance management system is integrated with task management, it becomes easy for employees to track their performance. For instance, they would compare the absent days or hours worked with the number of tasks done.

It can help employees keep their productivity in check. Besides, they can even set their future goals using the performance management module. Managers can monitor their progress and give more relevant feedback, recognize achievements, and plan talent succession.

8. Enhances Employee Engagement

An integrated HRMS solution can help increase employee engagement through continued training and development sessions.

Hiring speakers and trainers can be an expensive affair. This is why many organizations try to avoid their employees’ development courses, but it can have a long-term effect on their performance.

But an integrated system has e-learning modules that act as a cost-effective alternative solution. It helps employees improve their skills and performance at their own pace.

This is critical as it helps prepare future leaders within the company who might otherwise leave for better growth in another organization.

Also Read: 20+ Effective Employee Engagement Ideas for Managers

9. Improves User Experience

Another major benefit of using an integrated HR system is that it gives you access to all information on a single platform. Users need a single login procedure and access files and documents from a single dashboard.

That’s why it’s important to keenly check out the user interface of the system before buying it.

Moreover, implementing an all-in-one solution is comparatively easier than trying to integrate different systems. It saves a lot of time and eliminates the need to design interfaces and connections.

10. Offers Out-of-the-box Compatibility

When you try to integrate different systems into one, there is no guarantee that they will easily combine.

Truth be told, vendors want their customers to buy the whole suite of solutions rather than just one. This is why they even deliberately try to make the whole integration process with the competitors’ products difficult.

But this problem doesn’t exist with an end-to-end HR system.

Some systems are more integrated than others. You may not be able to enjoy most of the advantages if you choose a system that is just a collection of standalone apps loosely tied together.

So when you finally decide to implement an integrated HR system, make sure to do your research and take demos.

Nikita Agarwal
Nikita is a SaaS copywriter and content marketing expert with almost five years of experience. She creates engaging and high-quality content for businesses that want to see their Google search rankings surge. When she is not writing, she is busy following the search industry news to stay updated on all SEO tactics.

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