These are the biggest system integration pitfalls in an HRIT implementation
Planning for your system integrations is of great importance prior to implementing an HRIT system. In doing so, there are several pitfalls that companies should be aware of. In this blog, Business Consultants Drago Savic and Robert Clements, both working at SuccessDay, list the main pitfalls for you.
Many organizations have delays in implementing an HRIT system because they do not prepare its integration correctly. A new HRIT system must be able to communicate well with other key systems used within an organization to get the most out of it. Consider, for example, Identity and Access Management (IAM) or payroll systems as it does little good to improve HCM if employees are not paid on time or access to your other IT systems is not available. Moreover, insufficient attention to system integration often causes significant delays, annoyances, and budget overruns when it comes to the actual HRIT system implementation project.
According to Drago and Robert, these are the main reasons for system integration in HRIT implementations:
- Greater efficiency
System integrations improve the efficiency of your HR processes, either by fully automating the transfer of relevant data between systems or providing it in a manner more easily utilized in manual processes. - Data integrity
System integration improves data integrity either by removing human error with full automation or by providing concise datasets for manual processing. This means that data is not duplicated and conflicts do not arise between different systems. - Cost savings
System integration can lead to cost savings which comes from efficiency gains of automation and processing. - Increased Security
Finally, companies can be better protected against security risks if they implement systems integrations. This can apply, for example, to protect sensitive data, such as employees’ personal data, since you don’t need human resources.
Insufficient attention to the importance of integrations
“So, the benefits of system integrations are evident. However, organizations often do not pay enough attention to this prior to the implementation of a new HRIT system. Or they only take action when they encounter problems during the implementation of their HCM system and then you lose valuable time”, says Robert, who has held various IT roles at internationally operating companies. According to him, it is important to get serious about system integrations as early as the preliminary phase of an HRIT implementation – SuccessDay calls this Phase 0.
Robert and Drago have already supported several customers in system integrations during HRIT implementations. Based on their experiences, they distilled some common pitfalls:
1) Lack of communication
Quite often communication problems occur between the departments and stakeholders involved. Not only internally, as for example between HR and IT, but also externally with HRIT suppliers and implementation partners. For example, software vendors do not always tell you exactly what their product can do and what it requires. This often has major implications for how the integration should be carried out. Or HR has all kinds of ambitious plans with the system, without sparring with the IT department about the impact on the IT landscape. So good communication is necessary to make sure everyone is aware of the plans, implications, progress, and any potential problems.
2) Wrong assumptions
Partly because of poor communication, people often make wrong assumptions. This can hinder project progress. In the case of system integrations, existing and new systems are often inadequately analyzed. Drago: “Many companies underestimate the complexity of system integration and begin implementation without a thorough analysis of the existing systems. This can lead to problems. You can avoid them by thoroughly mapping out the systems and the wishes and needs with all those involved beforehand: what data needs to be transferred from one system to another, which systems do you want to link to each other for this purpose and how will the integration take place?”
3) Lack of in-depth knowledge
Sometimes companies do not have enough in-house expertise to perform system integration successfully. This can lead to problems in implementing and using the system. Robert: “Together with the customer, we map out which systems are in place, which should remain in place, and which should be able to communicate with each other. For interfacing with other systems, it is important to understand the data flow and discover where the data is hosted.” HRIT integrations often involve not only many different systems, but also different countries, each with its own laws and regulations. Moreover, policies for middleware, security, and privacy, for example, can differ between departments, branches and countries. Drago: “For all these reasons, IT landscape discovery is an essential component during Phase 0 of an HRIT implementation.”
4) Insufficient resources and budget
There are limited out-of-the-box solutions for system integrations and these are very dependent on the systems and vendors involved. What resources are needed for system integrations depends on the complexity of the IT landscape, the number of integrations and the number of modules you want to implement in your new HRIT system. Sometimes middleware is needed for the integrations. For automated integrations, there are two options: APIs or file ingestion, where a flat file is used. Robert: “Both options quickly require someone with programming knowledge, and those people are very scarce today. So, start early to map out what you want, and what is needed to do that, and start the search for experts. That search can be either internal or external. In any case, you will always have to appoint someone as Integration Lead.”
Many companies underestimate the cost of system integration and have not set aside enough budget for it. This can lead to problems during implementation, such as delays or poor system quality. Drago: “Always reserve sufficient resources. Make sure you have the right people in place who can implement the integrations and be aware of ongoing costs for maintenance as well.”
Chances of significant delays
If organizations are not aware of these pitfalls surrounding system integrations, their implementation process will be significantly delayed and more expensive. So set aside time to understand your IT landscape and do this prior to implementation, instead of during the implementation. Robert: “Otherwise, you’ll find that you can start over because it doesn’t meet your requirements. If you don’t think about this early on, it will always cost you more time and money in hindsight, which is a frustration to everyone.”
Integration projects involve multiple systems talking to each other and different parties that need to be involved early on. Human Resources is often the initiator of the implementation of a new HRIT system, but you will certainly need to get the IT department on board as well when it comes to system integrations, just like software vendors and implementation partners. “Because you also have to deal with different countries, systems and laws, and regulations, an HRIT integration is extra complex. This often requires extra people, extra resources, and extra focus on planning,” Drago says.
What can SuccessDay do to help?
To provide an answer to the pitfalls mentioned earlier, SuccessDay has developed a process to deal with potential problems in the best possible way. The various stakeholders are involved in the process as early as possible. Robert: “We bring them together, explain openly and honestly what is ahead of them, and what choices need to be made. As experts, we also know which extra questions to ask to dig deeper to get the right information to the surface. Finally, we align the processes and come up with an ‘as is’ and ’to be’ situation for the integrations.”
As a customer, you need to be made aware of the honest story of integrations. People expect often that everything can and should be integrated. However, it is even more important to make choices. For instance, it is often not cost-effective to integrate all payroll solutions. If you operate in several countries, you have to ask yourself whether building an integration for the payroll of 10 employees adds value. And if not, you need to know how to set up your governance for that process after the go-live and how to remain compliant. Therefore, SuccessDay looks at integrations more holistically. There is more to it than just the technical solution.
