The Unicorn HRO Blog
Benefits of using one single vendor for HR needsPosted Tuesday, November 03, 2015 by Unicorn HRO
The use of HRIS has increased substantially in the past decade with nearly all HR departments making use of HRIS solutions for tasks such as payroll, benefits administration, recruiting and training systems. Outsourcing these basic administrative tasks allows HR managers to focus on higher-end tasks such as predictive analysis as well as strategic recruiting and retention processes. Many companies have traditionally outsourced administrative tasks to multiple vendors, consequently finding themselves with a variety of different software solutions. As technology continues to improve and as the needs of the company change, companies find it necessary to upgrade their software or implement new software solutions. Problems can occur for companies working with multiple vendors, especially when one or more of these systems require upgrading. Companies may find that systems that once integrated well with each other now experience conflict and a loss of integration between all systems during upgrades, leading to errors in data and data leaks.
Single vendor solutions minimize these problems by providing an integrated HR outsourcing option which moves nearly all HR functions to one single platform. The use of single vendor solutions can greatly reduce difficulties with implementation of upgrades including data-interference problems and incompatibility, with upgrades and patches being disseminated across all areas of the system. This is because single vendors typically ensure upgrades are able to integrate with all systems while reducing the potential of non-integration. A single vendor HRIS system can also reduce the occurrence of data errors by providing a single entry point for data entry, which automatically updates all system areas, and also increases efficiency by reducing the need for double data entry. Moreover, HRIS software allows employees to enter their own data (including personal information) which further reduces the propensity for errors.
The use of a single vendor HRIS ensures the integration of systems rather than having data residing across multiple separate systems. Consolidating data across all systems allows for a more comprehensive and accurate reporting and analytic capabilities, enabling companies to engage in real time reporting. Furthermore, the use of a single vendor for HR needs can be more cost effective, with providers offering discounts for companies who purchase bundle deals for multiple services. Companies may also find it easier to negotiate and work with one provider rather than multiple vendors.
Companies can also procure new products faster under their existing contracts, and as a result enjoy a smoother migration of current platforms to new systems. Finally, companies can potentially save money in staff training with the use of a single vendor, as employees will be trained on one system and, as a consequence, typically need less training with implementation of upgrades or extensions to existing infrastructure.