Decoding HR Tech: Point Solutions Vs. All-in-one Suites
From customer relationship management to project management to artificial intelligence, technology is a vital tool to help boost business efficiency. Your HR operations are no different.
According to the research report published by Market Research Future (MRFR), “Core HR Software Market Information Deployment Mode, By Organization Size, And By Region—Market Forecast Till 2030,” the core HR software market is expected to grow 11.1% between 2022 and 2030, with total market size totaling around $35.13 billion by the end of the year 20301. That’s a lot of businesses using technology to help them with their HR tasks.
Automation of HR processes such as employee onboarding, performance management, and payroll processing can help reduce the administrative burden on HR teams and improve the accuracy and speed of HR operations. Automated processes also help in minimizing errors, reducing costs, and improving HR compliance support.
According to Software Path, the most popular reason for implementing HRIS across businesses of all sizes was to gain greater functionality with more than 36% of businesses with up to 49 employees and 25% of businesses with 50 to 499 employees citing this as their main goal for implementing. However, more than 28% of businesses with up to 49 employees and close to 17% of businesses of 50 to 499 cited supporting growth as their main objective.2
Regardless of whether you are looking to gain functionality, streamline processes or fuel your growth, odds are HR technology will help you get where you want your company to go.
REASONS FOR IMPLEMENTING HRIS BY COMPANY SIZE3
0-49 EMPLOYEES
Greater functionality 36.1%
Support growth 28.9%
Increase efficiency 19.3%
50-499 EMPLOYEES
Greater functionality 25.0%
Increase efficiency 24.1%
Support growth 16.7%
Choosing the right path
When it comes to HR technology strategy, businesses typically tread one of two paths. Some opt for a patchwork quilt approach, stitching together disparate “point solutions” from multiple vendors. Others embrace the simplicity and cohesion of an all-in-one platform like TriNet, which smoothly integrates HR, benefits and payroll functionalities. The choice between these approaches hinges on several critical factors.
Factor 1: Scale - Balancing Present and Future Needs
The first factor to consider is scale. Are you a burgeoning startup poised for rapid expansion or a stable enterprise seeking to streamline operations?Regardless of your current size, the ideal solution should be agile enough to accommodate future growth without burdening you with unnecessary functionalities.
While point solutions can often offer top features for the single issue they address, and may offer more frequent updates, they also may come with some drawbacks for scale. If you have more than one HR problem in the future that you need to address, you may have to work with multiple vendors and systems, which may lead to potential integration, reporting and security issues.
While no one system can offer every solution your company will need, TriNet HR Platform excels in scalability, helping to ensure that businesses can seamlessly transition through different stages of growth without overburdening their resources. And when the time comes for more personalized help with your HR operations, the ability to smoothly add different levels of service and support all the way through a professional employment organization (PEO) to help keep your HR operations moving forward with minimal interruption.
On Average, companies are paying around $40 per employee per month for disparate systems, based on an estimated average for these different types of systems and according to select providers’ websites:
- HR software: $9 PEPM
- Performance management software: $10 PEPM
- Compensation software: $4 PEPM
- Time and attendance software: $9 PEPM
- Workforce analytics software: $8 PEPM
All-in-ones in disguise
Some of other providers have acquired systems to appear as an all-in-one when it’s just an integration to a legacy technology. The value of HR Platform is that benefits administration and payroll processing are natively built into the platform, helping to maximize data accuracy and ensure a consistent user experience across each application.
Factor 2: Total Cost—Unveiling Hidden Expenses
While the allure of piecemeal solutions may seem economical at first glance due to the potential upfront costs of an all-in-one HRIS, the cumulative costs can quickly spiral out of control. On average, companies are paying around $40 per employee per month for disparate systems such as compensation software, HR software, performance management software, time and attendance software and workforce analytics software, according to other providers’ websites. TriNet HR Platform offers a comprehensive base plan encompassing essential HR functionality like HRIS, Time & Attendance, Compensation Management, Performance Management and People Analytics for generally less than the combined average. By consolidating these features into a single platform, businesses can help optimize the financial strain associated with managing multiple systems and streamline their operational expenses.
Factor 3: Connectivity—The Power of Smooth Integration
In the intricate ecosystem of HR management, connectivity is paramount. A minor update to an employee record should directly sync across all relevant HR systems, encompassing benefits administration, payroll processing and HR. This requires smooth integrations, which may be less reliable the more systems you are piecing together. TriNet HR Platform’s natively built applications are connected across HR, benefits and payroll which helps to minimize vulnerabilities and errors associated with manual data entries and optimize operational efficiency. For example, a single data entry error in the time and attendance system may lead to incorrect pay in an employee’s paycheck. Similarly, not synchronizing benefits data with payroll processing system could result in incorrect deductions.
Factor 4: Service & Support—A Pillar of Reliability
In the realm of technology, robust service and support form the cornerstone of reliability. While utilizing various separate technologies means that each one has expert product support, it might also mean dealing with separate support staff for each one. While they may be experts in their technology, issues may occur in level of service, expertise on integrated software and more. TriNet HR Platform boasts a dedicated support team, specializing in specific facets of the platform. Businesses receive prompt and specialized assistance, helping to mitigate HR concerns and foster a seamless user experience.
In the ever-evolving landscape of HR technology, the choice between disparate solutions and comprehensive platforms can shape the trajectory of your business.
TriNet HR Platform emerges as a beacon of simplicity and efficacy, offering SMBs a holistic solution to navigate the complexities of HR management. This allows your business to streamline HR operations, optimize costs and unlock the full potential of your workforce. As you chart the course of your business growth, let TriNet HR Platform be your compass in navigating HR excellence.
The pros of point solutions:
- Often bring top features with deep expertise in one area
- Updates tend to be more frequent; vendors have an easier time making changes to niche software
- Less disruptive than switching entire platforms
- More cost-effective if you only have one problem you’re looking to solve
The pros of all-in-one HRIS:
- End-to-end process and data flow, and a unified process across your employee lifecycle
- Single login; user data can also be entered once, making data more robust and reliable
- Enhanced HR compliance support and minimized manual entry and data that is synced between applications
- Familiar and connected feel to your HR technology
The cons of point solutions:
- Requires managing multiple contracts and vendors
- Increased likelihood of incompatibility between systems
- More administrative inconveniences—such as users having different credentials and needing to enter data in multiple systems
- Less cost effective as business needs outgrow system capabilities
The cons of all-in-one HRIS:
- Additional integrations may be needed to support other areas of business (i.e. accounting, provisioning, etc.)
- May be a larger investment upfront than point solutions
- More disruptive to replace than point solutions
