Workforce Planning

Why System Interoperability is So Important

“HR professionals often see their largest job challenges as sourcing talent, improving performance management, defining compensation, and providing training programs and other HR systems.”

-Dave Ulrich, Professor at The University of Michigan

96% of senior HR professionals believe AI can greatly enhance talent acquisition and retention.

Here are five main trends impacting HR Technology today. We explore these to illustrate how vital system interoperability truly is. With new technologies impacting Human Capital Systems every day, it’s crucial to understand how they speak to each other.

Smarter recruitment through AI. This evolving technology is one of the most influential trends in human capital systems. According to Deloitte’s Human Capital Trends 2018 report, while AI has been around for decades, it’s only recently that businesses have been able to implement it at scale.

Efficient and sophisticated compliance. New regulations continue to require updated compliance policies. These changes include GDPR in Europe and the California Consumer Privacy Act (CCPA) in the US, which took effect on January 1, 2020.

Big data awareness. To extract value from big data analytics, organizations need to fully understand their workforce profile and engagement drivers.

Improved performance management through analytics. HR Leaders are bridging the gap between Human Capital Management and Big Data to provide real-time insights into workforce analytics.

Better analytics for boosting diversity and inclusion. D&I is one of the most critical topics among HR professionals, especially as diversity and inclusion initiatives are more closely associated with core business outcomes.

As we can see, there is a wide range of trends impacting HR technology today. All this induces integration challenges organizations must address to meet their business objectives.

HR systems help organizations reap many benefits by integrating them. Using a single source of truth can streamline HR operations, improve employee records, and provide real-time views of employees.

It's hard to run an efficient business if your systems don't work together. That's why system interoperability is of the utmost importance. Here are PREDICTIVEHR's tips for creating cohesive systems: Click To Tweet

How Does HR Software Interoperability Work?

In short? Through interoperability, disparate finance, people, and productivity systems can “talk” to one another and increase productivity. Integrating disparate systems allows you to:

  • Streamline the flow of information between departments
  • Easily capture critical data from a variety of sources
  • Be flexible and responsive to changing trends and needs

Why Is ​​HR Software Interoperability Important?

It’s helpful to start by examining what can happen when systems don’t communicate with one another.

First, we have wasted spend. An unintegrated point solution, for example, could sit idle for years before anyone notices.

In addition, many different systems and solutions are used regularly, causing confusion and backlogs. One survey reported six in 10 workers waste up to an hour a day navigating between apps, and that 68% switch apps as many as 10 times an hour.

To alleviate these challenges, consolidate software use in day-to-day work by connecting disparate applications or streamlining different workflows within a single platform.

What Is Driving the Trend Toward Interoperability in HR?

In recent years, the digital transformation experienced by enterprises, including an ever-increasing number of mobile devices and applications, has created a new type of data center environment that requires greater flexibility than ever before.

With the advancement of technology, there are more systems to integrate and more information coming at us faster than ever before. For our workflow to work effectively, we must ensure that no data falls through the cracks, all stakeholders receive the right service, and we have automated alerts that let us know when we need to pay attention without spending the whole day tediously combing through databases.

Every Human Resource business system has a purpose. When these systems are combined, organizations can maximize the value of their talent management systems through enhanced integration.

6/10 workers waste up to an hour a day navigating between apps. App bloat and redundant systems waste money and tank productivity. Here's why you need interoperable systems to remain efficient: Click To Tweet

Every System is Like Its Own Country

Every business system has a purpose. When these systems are combined, organizations can maximize their value through enhanced integration.

Human Resource based systems, e.g., ERP, SAP, Oracle E, have different architectural setups, similar to individual countries with their own unique languages, customs, and religions.

These systems use different data formats, so transferring data between them is a challenge for IT users. Automation simplifies the computer-to-computer data exchange process and prevents the formation of automation silos among organizations.

Companies with many employees need to get that information into their critical systems. HR teams will have to resurrect data errors and redo several tasks otherwise. Data connectivity platforms can make the entire process faster and less labor-intensive.

By improving data connectivity, organizations can reuse their existing data dumps to build accurate reports and improve the entire data retention process. HR teams can monitor employee performance, as well as how a particular resource influences that outcome.

Organizations with a complex mixture of hybrid applications can gain a competitive edge by integrating HRMS. Information silos break down, interoperability is improved, data accuracy is improved, systems are turbocharged, and processes align with the organization’s goals.

The Seamless Integration Path Selection Process

Interoperability – the seamless integration of systems, data, and platforms – plays a vital role in today’s infrastructure. Enterprise systems and data integration that helps your organization operate and meet its goals and missions require secure, easy-to-use, and cost-effective integration.

Finding a solution that matches your team’s needs is the key to a successful implementation. It might be enough to simply integrate the tools employees currently use as much as possible. In contrast, if you’re starting from scratch or reorganizing current processes, you might be better off considering a more comprehensive approach.

If you’re going to adopt any new tools in the future, ensure they’re compatible with your current processes. HR and IT have never been more closely connected – nor more crucial to each other.

For more information on creating cohesive business systems, please visit predictivehr.com!

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