HRMS Integration: Getting All Your HR Data in One Place

Your HRMS is a treasure trove of employee data, providing in-depth reporting capabilities. To fully leverage this potential, it's essential to integrate data from other business systems into your HRMS. HRMS integration ensures that all relevant data—HR, payroll, timekeeping, expenses, financials, etc.—is centralized, providing decision-makers with a comprehensive view. This holistic visibility allows for strategic changes that optimize HR operations.

But what is HRMS integration exactly?

HRMS integration refers to the process of combining data from various systems, such as payroll and timekeeping, into a centralized HRMS. This integration streamlines access to critical information, making it easier for managers to make informed decisions.

How do companies typically integrate HRMS with other systems?

Many companies utilize a reporting or data warehouse, where key data from various systems are aggregated and then used to create reports and other tools, such as manager dashboards. These dashboards are powered by HRMS integration, bringing together data from multiple sources. For example, an employee's name might come from the core HRMS, hours worked or absenteeism from a timekeeping system, employee costs from payroll, and overall financial data from a general ledger system. Having a single access point for this data is the most efficient solution for managers.

Capabilities and complexities

HR analytics, which integrates key data elements, serves as a powerful tool for decision-making. This functionality can range from generating a simple headcount report to conducting targeted analyses, such as combining compensation data with sales figures to ensure that top sales representatives are receiving appropriate commissions.

Recommended reading: 5 ways HRMS helps you get more out of HR data - a detailed guide on the data analytics capabilities of your HRMS.

It’s important to design the data that will be received from the various systems based on the expected analytics that will be produced.

What challenges might arise during HRMS integration?

HRMS integration presents several complexities. Technical considerations, such as database sizing, are critical—especially when dealing with payroll data, which can involve vast amounts of information per employee. It's crucial to design the data input based on the desired analytics outputs, rather than importing every possible field from each system.

Another challenge is defining data ownership. For instance, the 'HR system headcount' might differ from the 'Finance system headcount' due to varying definitions—HR may count every employee in a seat, while Finance might count only a fraction for unpaid interns. Where data variances such as these exist, it’s important that everyone is clear on the definitions, especially if this data will be distributed throughout the organization.

Can HRMS integration be customized to fit specific business needs?

Yes, HRMS integration can be tailored to meet the unique requirements of your business. This involves focusing on specific data elements and analytics that are most relevant to your organization, ensuring the integration supports your strategic objectives.

Conclusion

Integrating your HRMS with other business software is about creating a unified environment where all your HR data becomes easily accessible and actionable. By carefully managing the complexities, such as database sizing and data ownership, you enable a more strategic approach to HR operations. This integration streamlines data management, giving decision-makers the insights they need to drive meaningful improvements.