HR CLOUD CLEANUP - HRsoft · How to Effectively Connect HR Cloud Applications to Save Time & Money...

How to Effectively Connect HR Cloud Applications to Save Time & Money

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HR CLOUD CLEANUP

Copyright © 2017 HRsoft

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Introduction

If your company is like many others, you probably already have a number of HR applications in use. While

these tools are invaluable to your HR functions and facilitate effective business processes, they typically aren’t

automatically integrated with one another. Having a number of different HR applications that aren’t integrated can

lead to redundancies and time-draining processes. As a result, many HR professionals are seeking solutions for

integrating their HR applications that will provide seamless workflows, time saving benefits, and a significant ROI.

In many cases, it is indeed possible to integrate HR cloud applications. With that said, it’s not always a simple

process, and HR teams (as well as company leadership) should know what to expect before pursuing this task.

While cleaning up your HR cloud applications through integration can provide a multitude of benefits, there are

some important considerations to be mindful of before you choose to move forward.

Through the course of this guide, we’ll explain what the process of integrating HR cloud applications can entail

from start to finish. You’ll also have access to some helpful background information. Here’s what you can expect

to learn in this guide:

� HR Cloud Applications: A Basic Overview

� How to Approach Your Vendors

� The Benefits of Integration

� How to Plan for Your Integration

� An Integration Checklist

If you’re ready to start learning about how the integration process works and why it might be right for your

company, let’s begin.


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HR Cloud Applications: A Basic Overview

Much of today’s HR applications are cloud-

based. You may already know what that means,

but here’s a refresher just in case: cloud-based

applications are simply hosted by an offsite party

and you must connect to the internet to use them.

On-premises applications, on the other hand, are

hosted at your company’s location.

Within the last decade, HR applications (along with business applications in general) have shifted to the cloud-

based option, because they are oftentimes easier to get up and running, more secure and less costly. With that

said, there’s still a challenge in integrating the many different types of applications for one seamless process.

For instance, consider all the types of applications that your HR team might use. HR is a complex function to

begin with, especially when you think about the employee life cycle. Your cloud applications could include an

applicant tracking system (ATS), software for recruitment marketing, onboarding solutions, and background

screening software; and those are just for the initial stages in an employee’s life cycle! Consider the other cloud

applications you’re probably using, from payroll to performance management.

Many HR professionals want to simplify their processes by connecting at least two of their different types of

applications. As you may have guessed by now, this process is called integration. At the simplest level, it allows

two different types of applications to “talk” to one another. It’s almost always possible to achieve, but the ways of

doing it aren’t always the same from one integration to the next.

Methods of Integration

These are the three main methods of integration; although sometimes, circumstances will call for a combination

of the methods:

1. Pre-Built/Standard Integrations

If two of your applications are built by the same vendor, they will likely already have a pre-built integration

that you can use. For instance, if your ATS and background screening applications are made by the same

vendor, these solutions should already have integration capabilities available.

2. Built On Demand (Either by a Vendor or Third Party)

This is the most common scenario that takes place when you’re using applications from two (or more) different

vendors. You’ll need an integration to be built, either by one of the vendors or a separate third party.

3. DIY With an Off-the-Shelf Platform and/or Connectors

Some companies may opt for a “Do-It-Yourself” platform that will allow them to build their own integration.


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The method that you ultimately use will depend

on a few different factors, including:

� What your vendors have already built

� What type of integrations are already

available

� What your vendors can support in their

platforms

Decoding the “Technobabble”

Before you initiate the integration conversation

with your vendors, it’s a good idea to familiarize

yourself with some of the terms you’ll encounter.

The key concepts below and the phrases that

accompany them are used frequently in the HR

tech space, so going into a conversation with your

vendors having this knowledge will help you.

At the most basic level, you’ll need to know the

following about your HR applications:

� How you get data in and out

� How data is moving

� Which format the data is in

Here are some terms from each of the key topics

above that you can expect to encounter:

How You Get Data In & Out

API: This is simply the gateway or interface that

allows you to connect to an application. The

two main ways are REST and SOAP. Most new

companies are using REST.

DB Export (database export script): This refers to

when your application runs on a certain schedule

to export data.


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How Does Data Move Back & Forth?

HTTP: This is the same process you use to browse the internet; i.e., you make a request for a website, and the

website returns what you’re searching for. Technically, it is no different than how you would make a request via

SOAP or REST.

FTP (file transfer protocol): This is similar to the method listed above; the only difference is that this method allows

you to move files back and forth.

What Format The Data Is In

CSV: This is an “old-school” method that is often used in payroll applications

JSON & XML: These are simply two other possible ways of representing data.

Now that you’re aware of some of the terms you might encounter when communicating with your vendors, it’s

time to reach out to them and initiate your integration.


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How to Approach Your Vendors

When you’re planning an integration, there will always be at least three parties involved: you (your company), and

your two vendors. If you’re going to enlist the help of a third party to build the integration, then there will be four

or more parties involved. Thus, communication will be a key component for ensuring success throughout the

entire integration process.

Another helpful way to minimize delays and ensure that you’re prepared to have a conversation with your vendors

is to spend a little time educating yourself. Simply set aside 30 minutes or so for research, and Google “your-

vendor-name integration.” Because integrations are widely sought-after, your search should yield some helpful

results.

When browsing through search results, be on the lookout for terms like “API,” “developer,” and “marketplace.”

These links should help you find some helpful information about integrating your HR applications.

Once you feel like you have enough awareness about your applications and the basics of what the integration

might entail, you can approach your vendors. Please note that it’s strongly recommended that you approach your

account managers at both vendors from the beginning. Choosing to approach only one vendor initially could lead

to delays down the road.


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Here are the steps you can take when approaching your vendors:

1. Get Everyone in on a Conversation

Plan a conversation in which parties from both vendors will be present.

2. Explain Your Business Drivers & The Workflows You Need

In other words, make clear the reasons why you want an integration from a business standpoint. Which

outcomes do you hope to achieve, and how will integration benefit your workflows?

3. Map Out Your Existing Workflows

Try to dig deeply here; the more information you can provide for your vendors, the more smoothly the

integration will go. Document your workflows, either by typing them out or providing a diagram.

4. Give Your Vendors a (Realistic) Timeline

With the knowledge that the integration can take some time to achieve, give your vendors a date by

which you hope to have it completed.

One more thing to consider: If you’re currently shopping for a new HR cloud application, now is the ideal time to

connect with your other vendor(s) to determine which options are most feasible for being integrated. Taking this

proactive approach can be more cost-and time-effective than having an integration built after you’ve already

purchased and begun using an application.


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Cost Considerations

Before spending too much time on planning for your integration, understand that it’s not an inexpensive process.

Unless your integration is highly standardized, there’s almost always considerable work to be done, usually by

both sides. Keep in mind that it’s not as simple as “flipping a switch,” and even just coordinating plans can take a

while.

Because there will be work done on both sides, that will translate into costs. At least one vendor will usually

charge for the integration, if not both. While costs will depend on who’s doing the work, along with other factors,

you can either expect to pay the standard fee for integrations or per-hour fees for custom jobs. Most of these

types of integrations will cost roughly between $2,500 and $5,000 on each side, for a total cost ranging from

$5,000 to $10,000.

Usually, you’ll need to initiate the project via a formal change order or statement of work with your vendors.

While these costs may seem significant, many companies find that integrating their HR applications pays off in

the long run, which brings us to our next point.


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The Benefits of Integration

As with many business solutions, you can expect

to experience both direct and indirect benefits as

a result of integrating your HR applications.

For starters, here are some of the direct benefits

you’ll witness:

� Time Savings

Consider how much time you might spend

on inputting data for one employee into

one of your HR applications. If there are

30-40 fields in which you need to input

data, it might take quite a bit of time. Now,

consider how you have to repeat the

process for the same employee with every

HR application that isn’t integrated. When

you integrate applications, the employee’s

information can be carried over which

will result in significant time savings –

especially if you employ a high number of

associates.

� Increased Productivity

This part is simple: when you have more

time on your hands as a result of having

data carry over from integrated systems,

you’ll be able to get more accomplished.

� Reduced Errors

Human errors are an unavoidable aspect

of data entry, but consider how long it

would take to go through every one of your

HR applications to correct an employee’s

information. When your applications are

integrated, the change will only need to be

made once. Also, keep in mind how easy

it is to make an error when there are 30-40

fields of data. If you only have to enter

information one time, you’re less likely to

make an error.


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Now, here are some of the less tangible (but still worthwhile) indirect benefits you’ll receive:

� Improved Candidate Experience

Integration can help streamline your application process, which can improve your completion rate and

make you more likely to recruit high-level talent.

� Better Compliance

When all of your systems are tied together, it creates a consistent process which helps to reduce the

odds that an employee could get overlooked due to human error.

While both these direct and indirect benefits can amount to considerable savings, it’s a good idea to take the

time to actually estimate your projected ROI. This will help you determine whether integration is worthwhile for

your business at this point in time, and if so, which systems can be integrated to provide the greatest savings.


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How To Plan Your Integration

Some HR professionals might initially think that

integration is a quick and easy process, but by now,

you can probably guess that there’s a lot involved in

integrating your HR applications. Thus, the process

can be time-consuming.

Of course, your integration timeline can vary from the

next company’s because every organization is different.

Vendors, too, have their own unique integration

processes. While the timeline below is meant to

provide a ballpark idea as to how long your integration

project could take, keep in mind that these are just

ranges and that these time frames could fluctuate.

� Coordination:

You could expect to spend between one and four weeks just initiating the project. These steps might

include getting a “kickoff” meeting on all parties’ calendars, filling out the necessary paperwork, and

actually having the meeting with your team as well as the two vendors (and third party company who will

actually build the integration, if it’s not one of the vendors). One tip to keep in mind: once you are able

to schedule the kickoff meeting with everyone, try to check in at the same time each week, even if it’s

just for a two-minute phone call. Repeat this process until integration is complete so that all parties and

efforts are aligned.

� Quote:

Depending on the demand your vendors are experiencing as well as the time at which you contact them,

you could wait four weeks or more for a quote for the integration build. In fact, it’s not unheard of to wait

up to 8 weeks. As you can see, the process is not something that can be rushed, and the more time you

have before your desired completion date, the better.

� Vendor Configuration & Testing:

Generally, this step could take about two weeks or so.

� User Acceptance Testing:

If it’s not offered to you upfront, make a point to request your own trial period, too. This will give you an

opportunity to test the integration for yourself to ensure that everything is running smoothly. This might

take one or two weeks.

� Production Deployment:

This step typically takes about a week.

As you can see, the entire process could take roughly 5-12 weeks.


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Your Integration Checklist

Now that you know what the integration checklist

entails, you can begin the process of integrating

your company’s HR cloud applications. Below is

a step-by-step checklist you can follow to ensure

that you’re following all of the steps for an optimal

integration.

1. Document Your Desired Workflow

Write out what your business processes look

like now, as well as how you expect them to

be performed following the integration.

2. Determine the Benefits & Set Your Budget

Go back to the benefits section of this guide

and apply the principles listed there to your

own company. Will the time savings translate

to a reasonable ROI for your company? Can

you project the direct and indirect savings

that will result from the project? If you

think it’s a worthwhile investment for your

organization, set up a reasonable budget,

keeping in mind the potential costs discussed

earlier.

3. Research Your Vendors’ Capabilities

Going in with some basic knowledge about

how your systems work, as well as the

integrations that are possible through your

vendors, will make the planning processes

easier.

4. Contact Your Account Managers

Remember to get in touch with the account

managers for all of the vendors involved prior

to actually pursuing the integration. It’s better

to get everyone on the same page initially,

versus having to play catch-up with one

vendor down the road.

5. Request Pricing, Create a Timeline, and

Complete Paperwork

Request a quote, schedule your timeline, and

complete any paperwork as needed.

6. Build Your Internal Timeline

Make sure that the employees you dedicate

to the project have the availability to take on

the initiative.

7. Schedule Your Integration!

Finally, you’ll make the integration happen

and experience the time and cost savings of

having cohesive, aligned systems across your

HR department.


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Key Takeaways

We’ve covered a lot about integrating HR cloud

applications in this guide, and have discussed

everything from what the integration process entails

to determining whether or not it’s worthwhile for your

company. While you can refer back to this guide at

any time to weigh the options for integrating your HR

systems, here are a few key points to take away now:

� Most vendors have some ability to integrate their systems with others.

The process is unique and varies depending on the factors that we identified earlier (including how data is

communicated), and some integrations are more complex than others.

� Time frames and cost can vary.

Typically, you can expect an integration to take between one and three months from start to finish. As a

ballpark estimate, you could expect your cost to fall somewhere between $5,000 and $10,000.

� You need to determine ROI.

Try to do this as early on as possible, before you invest too much time pursuing the integration. Consider

your existing business process, what you hope to achieve, and the time and money you can expect to

save as a result of the integration.

� You don’t need to be a tech wizard.

While integrations can be technically complex, your main role in the process is simply to focus on your

workflow requirements. Then, you can leave the rest to your vendors.

Integrating HR applications can have immense benefits for a company, and now that you know what’s involved in

the process, you can plan for an integration that delivers powerful results to your organization. You now have all of

the tools needed to plan for seamless integration of your systems, so even if it’s not a top-level for your company

at this moment, you’ll be fully prepared once you’re ready. Keep in mind that the larger a company is, the more

data HR becomes responsible for. Thus, if your company is growing, integration might just be your team’s best

next step to prepare for the future.


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ResourcesHRsoft is a cloud-based talent management software company that specializes in improving manager effectiveness and business results for North American employers. Our suite of HR solutions includes modules for compensation planning software, applicant tracking software, performance management software, total rewards communication software, stay interview software and content management software. Discover more about HRsoft at http://www.HRsoft.com

We’re HRNX—the HR cloud connectors. We integrate hundreds of cloud-based HR applications, systems and services through our pre-built integrations and proprietary Hub. We’re the perfect solution if you’re looking for a more nimble and cost-effective alternative to typical big-budget systems integrations. We save HR departments, system vendors and service providers loads of time, effort and money every day.

http://www.hrnx.com

About the Authors

Brian Sharp – Chief Marketing Officer, HRsoft

Brian Sharp is the Chief Marketing Officer at HRsoft, a High Impact Talent Management™ software company that specializes in cloud-based software solutions to improve employee engagement and retention . With over 20+ years of marketing and management experience, Brian has been involved in the start-up, development and successful exits of three companies. As an award-winning speaker, he is a frequent presenter and author on the topic of HR technology & strategy. At HRsoft, he is responsible for product marketing and company branding across North America.

Rick Barfoot – Co-Founder and CTO at HRNX LLC

For over 15 years, Rick has worked at the forefront of the HR software industry. In 2000, he co-founded Revsolutions Inc. that was acquired less than two years later by Talemetry Inc. At Talemetry he led product and service teams responsible for building and delivering enterprise-grade SaaS solutions that were implemented at hundreds of companies globally. He directly managed deployments at several Fortune 500 companies as well as leading recruiting agencies and HR software vendors such as Oracle, Taleo, and ADP.

As co-founder and CTO at HRNX LLC, Rick Barfoot is responsible for all things tech with an emphasis on the product strategy, design, and development of the next generation of web-based technologies to support the HR market.

http://www.hrnx.com/

http://linkedin.com/in/bsharponline

HR CLOUD CLEANUP - HRsoft · How to Effectively Connect HR Cloud Applications to Save Time & Money...

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