Spring Cleaning Your HR Systems to Do More with Less

You know that one office closet where everyone dumps things they’ll deal with later? Finding anything in there can be a labor of love. Well, there's a chance your organization’s Human Resources department could be feeling that way. They're juggling a lot at once, and it might be slowing you down. Is it time to do a little spring cleaning with your systems to improve office efficiency and streamline HR operations? If you're looking for ways to cut down on unnecessary busy work, the answer could be in consolidation.

How many programs and systems are you logging into every day? If you are able to combine different software systems, and they work together in a more seamless way—that’s the power of a process known as system integration. It might be time to look for platforms or providers in your network who can help you pull together information access into one spot.

Tracking All the Moving Parts of HR

Like the beating heart of a company, Human Resources helps work behind the scenes to keep staff running smoothly. Some companies may have different programs for tracking aspects like these:

Payroll
Onboarding
Time Tracking
Leave Tracking
Performance Management
Applicant Management
Compliance
Benefits Administration

Not to mention, some aspects of HR can have multiple things to track within them—Benefits Administration is a great example of this. Your team might have to go to different sites for each one of these:

Health insurance
Retirement plans
Employee perks
Eligibility checks

But what if you could access them all from one spot? By consolidating various benefits platforms, organizations may be able to provide employees with a more user-friendly experience, resulting in improved engagement and understanding. Let's explore the concept of system integration, its potential impact on your department, and practical solutions for implementing this approach.

Is It Crowded in Here? Why Too Many Systems Can Be a Problem

The idea of having several vendors helping you with your processes can seem appealing. The more, the merrier, right? Not exactly.

When it comes to benefits enrollment, for instance, a multi-system enrollment approach can drain what resources you do have. Some organizations may use the a la carte nature of self-enrollment to cut costs. But what do you do if this “solution” leaves you with an array of mismatched benefits services?

Some organizations chase down multiple vendors to get the answers they need, potentially navigating new platforms over and over again. Confused and frustrated, they may be risking their employees’ experience.

3 Reasons You May Want to Consider Consolidation

Combining systems that you work with often is one way you could trim fat from your workload. Think of it like accessing all your apps from a single smartphone instead of lugging around a bunch of separate devices. Rather than logging in to a new platform every time, you can access what you need faster. Here are three ways this strategy could possibly affect your organization in a positive way:

1. Efficiency

To understand how effective system integration can be, take a closer look at what it can do for data management. Think about how much of the same information is needed from platform to platform. A more integrated system can help reduce the need to manually gather and re-enter data. Your goal may be to have the employee and benefits administrators enter the information only once. From there, integrated data often lives in an encrypted security system at the ready. This could mean less time transferring information from one system to another.

We can’t forget that each vendor you bring on may require a significant portion of your time and resources to onboard, including:

Set-up costs
Training
Education
Compliance
Communication

The goal is to take things off your plate, not add more to it. Automating can save time and recoups costs that could be better spent elsewhere.

In addition to the administrative price tag, managing multiple systems can sometimes slow efficient workflows. In fact, a recent report reveals that 70% of employers surveyed report they lose 20 hours a week to fragmented systems.¹Even something as simple as switching between systems and websites can account for 9% of an employee’s annual working hours.³

What would be a better use of this time? For example, about 85% of employees currently feel confused about their benefits.² You might be able to dedicate more resources to helping educate your staff, so they feel more comfortable and more confident with their benefits knowledge. Integrating your internal systems could help you focus on what matters most to your organization.

2. Scalability

If growth is in your organization’s future, you’ll want to consider systems that can scale with you. Many mid-sized and large-sized organizations use integrated systems for benefits management, with 90% of organizations going through some kind of digital transformation.⁴

Automation through integration can condense routine tasks into a more cost-effective solution as your organization expands. For those in education, integrating your systems can provide better user experiences by providing a centralized hub with information more easily accessible to your employees as staff needs change and increase.

System integration may be even more valuable for some larger organizations who offer multiple health plan options or are trying to manage larger amounts of data while still meeting state and federal requirements.

3. Clarity

You might have a “working” system in place for your HR department. But if employees don’t understand how it functions, then is it really working? A fragmented approach to essentials like benefits, leave management, or payroll can create confusion. This may explain why fewer than half (44%) of employees say their employer communicates “very” or “extremely well.”⁵Consolidation and automation could offer employees more timely, concise information and resources.

It’s probably time to make the process more straightforward, especially when 82% of HR tech users struggle to use workplace technology.⁶By providing a single, user-friendly interface, employees may feel less frustration. Could less platforms, logins, and systems mean more opportunities for your organization?

This information is general in nature and should not be considered financial, legal or tax advice. Consult an attorney or a tax professional regarding your specific situation.

This blog is up to date as of December 2024 and has not been updated for changes in the law, administration or current events.