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Are Best-In-Class HR systems the best option for your organization or should you opt for a Single Source alternative?

As the landscape of HR changes, so does your organization and the technology you adopt to keep up with it. Having agile, and future proof systems that can handle large amounts of data at any given time has now become a necessity. This is due to the fact that organizations can scale up quickly and grow their teams faster than ever before. As a result, it’s imperative that you understand what kind of HR system your organization will benefit from the most.

One of these systems is a ‘Single Source’ HR system. Single source systems unite your full HCM capability including payroll, recruitment and performance. On paper everything you need is in one place on one system.

However, consider that in 2018, there were 17,570 acquisitions and mergers in North America alone. The result of this can be the bringing together of a suite of best of breed, stand-alone systems that are favoured by different HR departments for their specialism and deep functionality but do not provide the same level of integration as a single-source system.

That landscape is becoming more complex too due to the emergence of various categories such as wellness, AI, gamification, gig-work and others - some of which are yet to come. As a result, there are now over 1,400 vendors in the HR tech space and an average of 13 HR systems per organization.


Which type of HR system is best for your business?

The nature of HR organizations is that you cover a wide range of services from onboarding to offboarding, payroll and many more besides. This being the case you’ll find a single source system will often have compromises in some (or even all) of those areas in order to provide you with one integrated system solution.

A stand-alone or “Best of Breed” HR system is likely to excel at its core function but provides a disjointed experience of disparate systems that do not integrate with each other. The result is that your HR systems will have no enterprise search, difficulty handling cross-system processes and complex plumbing to integrate them all together.

Simply put, a single source system will not offer the same level of features as a stand-alone system but using a suite of disparate systems will lead to poor integration and a potentially disjointed experience for your employees.

Find out more about integrating Applaud with you HRIS.

The Big 3 Single Source Vendors

If you’re part of an enterprise-level organization, you’ll likely have already decided on one of the ‘Big 3’ single source systems:

● SAP
● Workday
● Oracle

These single source systems are designed to offer system-wide integration and continuity between different aspects of your core HR. That’s great, but chances are once you’ve got there you’ll supplement these with other HR tech, such as a best-of-breed learning, recruitment or performance system – strengthening capability but eroding that single-source dream.

Best in class functionality vs single source integration

Depending on the nature of your current system, you may have several different best-in-class HR applications or find that you’re best off upgrading your existing single source system to introduce new innovations and capabilities.

Due to the complexities of each organization's individual needs, you’ll find that no one system will be perfectly aligned with those needs and will ultimately have functionality gaps. The reality of these complex landscapes has resulted in new categories and architectures that use experience layers to bring everything together – and enable a digital workforce.

Find out more about integrating Applaud with your global HR system.

When you don’t need to replace your existing system

Identifying what your current HR needs are is crucial before deciding to replace your system. Common reasons to replace or upgrade existing HR systems include:

● Scalability
● Poor usability
● Reporting
● Integration issues
● Customization and configuration limitations
● Internal knowledge
● Functionality gaps

However, by fixing just one of these issues, you’re likely to create other problems. For example, resolving an issue with performance and stability for payroll, can lead to further configuration and customization limitations as a result. In order to effectively understand if you need to replace your system, you need to start with your HR strategy and then map how well your landscape can meet those needs and then build your HR tech roadmap from that.

How can Applaud work with your HRIS system?

Applaud’s Employee Experience Platform is a no-code layer that sits across all your HR systems, helping the employee to find answers more quickly and interact with a simplified set of HR services that make work easier.

Regardless of whether you have a single source system or a landscape with dozens of systems, Applaud might just be the answer you’ve been looking for.

To find out how Applaud can work with your existing system take a look at our integrations page.

Ready to find out more about what Applaud could do for your organisation?

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Tags: Blog

Dec 20, 2019 3:37:42 PM / by Applaud