As HR tools and apps grow increasingly sophisticated, it becomes more difficult for companies to consolidate their HR tech stack. Without consolidation, they end up spending too much for too little functionality.
Many companies also forget to consider future scalability when selecting HR tech tools. A fragmented stack costs time, money, and efficiency and can reduce employee satisfaction in the workplace. What follows are some of the benefits of consolidating HR tools.
Reason #1: Simplified Workflows
The simplified workflows that can result when you streamline HR systems are one of the top reasons to do so. When companies rely on too many tools, they often end up with redundant systems and duplicate tasks. When HR, payroll, and benefits are tracked and administered through one consolidated system, these problems are eliminated.
Reason #2: Improved Data Accuracy and Reporting
When data management is handled through too many different systems, it increases the risk of human error. Centralized management of data reduces the amount of errors. It also provides easier access to comprehensive employee information for reporting and compliance in HR.
Reason #3: Cost Savings
HR technology consolidation presents multiple ways to save money. When you’re paying subscription fees for multiple tools, it means you’re often paying for redundant or unnecessary services. Fewer tools will lower the costs of maintaining as many systems. It will also save time by reducing your IT support needs.
Reason #4: Enhanced Employee Experience
HR tech integration allows you to enhance the employee experience. Integrated platforms allow you to offer self-service capabilities in one unified system. Everything from onboarding to payroll to benefits integration can be unified in a single platform. Employees appreciate the transparency and ease of use that this provides them.
Reason #5: Better Decision-Making with Unified Analytics
“Big Data” is becoming increasingly important in the highly specialized HR tech market. You might have access to years’ worth of data from multiple HR tools, but that data is less useful if it cannot be consolidated and analyzed as cohesive employee information. Better HR software efficiency allows you to aggregate data from multiple HR functions, which in turn allows for deeper insights. The reports you can make from a consolidated HR tech stack allow you to make more informed decisions through data.
Reason #6: Future-Proofing Your HR Tech
Consolidating your HR tools is a proven way to future-proof your HR tech. One thing we can predict with certainty is that bigger and more effective tools for the HR space will be developed in the coming years.
Consolidating now will allow you to adapt to these new technologies. It also provides for scalability to accommodate company growth in the future. Regulations and industry standards are certain to change as well; tech stack consolidation will help ensure compliance with these future changes.
Conclusion
When you don’t consolidate your HR tech stack, it creates unnecessary and time-consuming functions. You end up paying for multiple redundant services, which introduces the possibility of more human errors. Consolidating your tech stack allows you to make more informed decisions based on data, enhances employee experience, and future-proofs your HR tech.
Contact us at ASAP Payroll to learn how our HR solutions can help you streamline your tech stack.
