A Human Capital Management system (or HCM for short) is a powerful tool that businesses can use to not only recruit top-tier talent but also manage those employees, help them develop, and optimize their performance moving forward. Essentially, it’s like a silver bullet that human resources professionals leverage to make sure they’re always hiring the right person for the right job at exactly the right time.
When it comes time to employ one of these solutions for your own company, the major decision you have involves whether to go with an integrated HCM or a single database system. Making the right, strategic choice requires you to keep a few key things in mind.
The Differences Between an Integrated and Single Database HCM System
There are likely many different applications that your HR and leadership teams are already using to maintain visibility over your workforce. Inside those applications is a wealth of data that can be used to make better and more informed decisions about hiring, resource allocation, and more.
The issue is that these applications were built separately and weren’t necessarily designed to work together. Each one has a different database – be it payroll, workforce management, talent, or something else entirely. An integrated HCM system will attempt to bring all these rich data sources together, even though by design it will never be the “perfect pairing.”
A single database HCM, on the other hand, is one that natively condenses everything into a “single source of truth” for your company. Rather than attempting to connect disparate applications that don’t “play nice” with one another, you’re instead building an entirely new one from scratch. You don’t have to worry about critical information getting trapped in data silos, and everything can flow freely across your enterprise, likely for the first time.
The Benefits of Single Database HCM Systems: An Overview
By far, the major benefit that a single database HCM system brings with it is one of efficiency. According to one recent survey, about 1/3rd of organizations say that they saw a marked improvement in operational efficiency when they moved from multiple systems to a single, unified one. Data is no longer potentially “trapped” in different departments. Everyone has access to all critical information at all times, putting them in a position to act on it as quickly as possible.
Data Integrity and Efficiency
Along the same lines, data integrity is another benefit that you get from a single database HCM system. When everything is spread out over multiple systems, data quality becomes a major concern. In addition to never being quite certain that you have complete visibility into your information, you also have to worry about data duplication and the dreaded human error. With a single database HCM system, both of these issues are eliminated by their very nature.
Streamlined Operations
Finally, virtually everyone can benefit from the streamlined operations that single database HCM systems are known for. Rather than having to spend time entering information into multiple systems, making sure that everything is accurate, and hunting for data when needed, everything is contained within a simple and easy-to-use interface. This helps dramatically speed up most work-related processes like approving or denying holiday requests, managing absent employees, approving overtime requests, and more.
The short-term benefit of this is that important processes that formerly took a long period of time, like approving time cards, can be completed far faster. This also frees up the valuable time of human resources and other administrative employees to focus more on those tasks that truly need their attention, which in and of itself is the most important benefit of all.
By consolidating data into a unified platform like a single database HCM system, you don’t just get to avoid the inherent complications and inefficiencies of fragmented databases. You also eliminate errors, arrive at better decisions faster, and take advantage of a more cohesive HR strategy – all in one fell swoop.
Take the Next Step
If you’re ready to unlock the full potential of your HR operations with a single database HCM system, the good news is that we are, too. Reach out to the team at ASAP Payroll today so that we can guide you toward the perfect solution that plays directly to all the strengths that make your organization unique.
