HR Focus 2015 #3: Integration is Back, with a Vengeance
The abundance of new cloud systems means that organizations once again are looking at best of breed: Core HR and Talent, Benefits outsourcing, Recruitment process and Learning administration outsourcing. No single cloud provider is good enough (yet) to cover all HR needs an organization has. Different HR departments favor different solutions: the Recruitment Center of Expertise needs more tailored functionality than an HR cloud system offers and the same goes for Learning & Development. And, because it is cloud, it is easy to switch between solutions (especially the single process ones) or to sign up for a solution that offers specific functionality – even to the point where that functionality is only needed for a short time (think online courseware or MOOCs).
There are many cloud vendors out there introducing point solutions to deal with very specific topics: social performance management, productivity trackers or leadership training using gamification. MOOC’s are gaining traction in higher education and companies have the opportunity to transform learning by incorporating MOOCs into their Learning landscape, thereby introducing blended learning programs to an increasingly diverse workforce. In addition, for many companies the workforce consists of various groups, with permanent and temporary employees, as well as free-lance staff and contingent workers. All of these groups generate information, which is often captured in more than one system.
There is also a need to integrate cloud with more localized solutions in the area of benefits, time and payroll as cloud vendors have not (yet) fully localized their systems or don’t offer these modules as part of their solution. Enterprises that move to cloud can seldom justify the business case of replacing these localized (and tailored) systems with a new solution offering less functionality. Lastly, HR continues to feed many internal systems with personnel data, so on top of the integration between HR systems, the need for further backoffice integration remains as before.
As all these solutions collect (a part of) employee data, integration is needed to ensure that data can be captured in a central location in order to build a holistic employee profile. Vendors offering core solutions increasingly provide standard APIs so data can be made easily available. In addition, middleware solutions, such as NGA’s PEX, streamline the connectivity between a company’s central HR solution and other systems by synchronizing data models across platforms, validating compliance requirements, and translating complex integrations into meaningful and understandable business transactions.
In 2015 we expect integration to become more standardized thanks to vendor APIs and further adoption of HR-XML. Cloud vendors are adopting these standards to streamline their data delivery. However, companies are in the early stages of adopting these standards and the fact that they are not incorporated in most traditional on-premise systems will expose the need for a very clear integration strategy as a crucial part of your digital transformation.
Talking about integration, NGA’s Global Payroll offering delivers globally compliant payroll outsourcing services to multinational companies. It seamlessly connects NGA’s payroll network in more than 145 countries to a certified global HRIS, offering improved data quality, cost savings and comprehensive global reporting.
Watch this 2-minute movie and see how easy integration can be for payroll.
For part 1 of this post please visit: HR Focus 2015 #1: What will 2015 bring for HR Technology?
For part 2 of this post please visit: HR Focus 2015 #2: Hybrid Leads the Charge