Post on 25-Jun-2020
How to Effectively Connect HR Cloud Applications to Save Time & Money
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HR CLOUD CLEANUP
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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.