It may strike some as patronizing, but many times the Human Resources folks do not come from a tech culture and have not experienced any tech education based curriculum. Even when they pick up the lingo of HRM systems, they are still learning a foreign language. However, the key to at least a basic understanding is critical because the HR team is a key decision maker in any new HRM system selection. In this article, we review the differences between two commonly misinterpreted terms: Interface and Integrate. While the functions are very similar the differences can be nuanced.
Interfaced
Software systems interface when disparate applications connect at a surface level. By surface level we mean that while each application will share information, only one system is sending it, while the other system receives it. To use a common metaphor, picture moving file folders via USB stick and taking it over to a friend’s house to share those files. Then your friend makes changes to those files on that USB. The only way to get that update is to bring the USB back to your house. Likewise, HRM systems interface with Payroll systems when the HR Manager and the staff access and handle employee information and send that required information to the payroll team for processing payroll, 401k, etc.
In HRM systems, the difficulty in the process exists because ‘one’ system must be the ‘keeper of all data’ or, the owner of the information, while the other system (Payroll in the above example) is the subordinate. In many organizations, individuals may decide that their team is the owner and conflict arises simply due to the ‘interfaces’ that exist. To be successful, the parties involved must negotiate on ownership between their systems and define who is the ‘system of record’.
Integrated
Systems integrate when IT, software, and software vendors develop automated ways to share information across software modules. This allows for real time information to be shared. Using the USB example, now imagine that you and your friend put the files on a USB that you share, allowing you to each view and update at any time. There is not one ‘system of record’ because the USB is keeping everything together and updated at all times. One HRM example: time clocks gather time and attendance information on a daily basis and that information is immediately available to the payroll team.
Although the politics of organizations still occur in this instance, all teams have ‘ownership’ of the information. The main difference here is that the HRM provider or ‘IT’ is the central player in the process and may dictate certain processes.
Recommendations on Interfaced or Integrated?
As you can see, there are similarities between an interfaced and an integrated approach. We believe the choice could be simple enough just based on the size of your organization:
HRM Interfaced Best for SMB:
To try to simplify this, as a truly small business, you can pretty much assemble your own interfaced system. With average-to-better desktop skills, you can put together your reporting needs. Between Excel, Access, and payroll/accounting software, you have all you need. How much you share is an interface issue and easy to do because there are few ‘stakeholders’. An interface could be a manual process and not even leverage technology.
Once you’ve increased your workforce however, you’ll need to look at HRM vendors who have unified solutions. Software that will relieve you of maintenance, reduce your time and guarantee accuracy which is ever more important the larger you get.
HRM Integrated for Larger Organizations:
At some point in organizational growth, you need more. You need integration to stream data, create and publish reports from across all functions. From HR’s view, it will track employees from pre-hire to post-retire. From Operations’ position, it will integrate employee recordkeeping with performance data. For the CFO, it links performance with labor burden. And, all integration points give the CEO detailed performance and cost forecasts along with an analysis of talent placement and management. In other words, integration is about supporting decision making and strategy – to the point where integration swallows any interface that previously existed.
The good news is that many HRM vendors have fully integrated solutions to reduce the burden of getting internal resources directly involved in ensuring information is complete and up to date. Ultimately, integration means ‘unification’ – and when you have unified systems, human capital decision making is done with everyone using the same information in real time.
So when considering HRM software, assess your needs, seek trusted help and know that you can leverage either interfaced or integrated – it just comes down to the size of your organization, and your capacity to leverage the information each solution provides.
Sources:
Integrating a Human Resource Information System: A Module with Integrated Case
Human Resource Management Systems: Strong to the Core
