HR Guide to Point Solutions vs. All-in-One HRISWhen searching for new HR tech, consider these point vs. platform pros and cons

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HR leaders today no longer have to resort to only manual processes when it comes to HR administration. Thanks to today’s technology, HR software is increasingly advanced, accessible, and easy to use — and the market for it is expected to pass $10 billion by 2022.

Having strong HR technology boosts employee engagement, too. 80% of HR professionals believe that incorporating HR technologies into their processes improve employee attitude toward their company.

The problem for leaders in this space isn’t the lack of technology solutions, but rather which vendors to choose — and how many.

One of the current dilemmas HR professionals are facing is whether to choose a single point HR solution, which typically solves a single, specific problem with best-of-breed functionality, or an all-in-one HRIS, which can address several issues and offer systems that naturally integrate with one another.

To find out which option is better for your company, it’s critical to know the differences of each and also determine what your HR challenges are, if you want to work with multiple vendors, what your budget is, and more. Read on for guidance on how to choose the right solution.

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HR software is increasingly advanced, accessible, and easy to use. The market for it is expected to pass $10 billion by 2022.

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Contents

HR Guide to Point Solutions vs. All-in-One HRIS

1. Point solutions

– The pros of point solutions

– The cons of point solutions

2. All-in-one HRIS

– The pros of all-in-one HRIS

– The cons of all-in-one HRIS

3. Single point solutions vs. All-in-one HRIS chart

4. Factors to consider

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01

Point solutions

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“Point solutions” are technology solutions that typically focus on one or two HR functions. For example, a vendor that focuses on monitoring attendance will probably offer time tracking, record keeping, and reporting. However, they may not offer solutions outside of that scope, such as benefits or payroll.

Some point solutions allow for integration with other software brands, so it’s possible to use various solutions together that are interoperable.

THE PROS OF POINT SOLUTIONS:

∙ Often bring best-in-class features and user experience for a specific problem, since the vendor has invested time and resources into solving a main issue

∙ Updates tend to be more frequent; vendors have an easier time making changes to niche software

∙ Switching point solutions is less disruptive than switching entire platforms

∙ It’s more cost-effective if you only have one problem you’re looking to solve

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THE CONS OF POINT SOLUTIONS:

∙ Since point solutions are created for a singular focus, you may need to seek additional vendors for solutions outside of that scope

∙ Purchasing solutions from different vendors can increase the likelihood of incompatibility between them

∙ Administrative issues and inconveniences can occur with integrating separate solutions — such as users having different credentials, and needing to enter data in multiple systems

∙ If you have multiple problems to solve, you may need multiple vendors — which could increase prices

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02

All-in-one HRIS

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A human resource information system (HRIS) is an intersection of human resources and information technology through HR software. This system allows HR activities and processes to occur electronically, on a single comprehensive platform.

All-in-one HR platforms can offer a variety of functions, such as benefits, payroll, onboarding, compensation management, time and scheduling, and more. The platforms often come as complete packages or as core functions with add-ons — all under the same vendor.

THE PROS OF ALL-IN-ONE HRIS:

∙ Seamless 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

∙ Better compliance due to minimized manual entry of personal data

∙ Familiar and connected feel to your HR technology

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THE CONS OF ALL-IN-ONE HRIS:

∙ Features may be more generic than “best-of-breed”

∙ There is no one system that offers all “solutions” at once; you may still want flexibility for additional add-ons

∙ May be a larger investment upfront than point solutions

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03

Single point solutions vs. All-in-one HRIS chart

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• Best-in-class features

and user experience

for a specific problem

• More frequent updates

• Less disruptive to switch

point solutions than entire

platforms

• Cost-effective if you only

have one problem to solve

THE PROS OF POINT SOLUTIONS

• You may need to seek

separate vendors for

additional solutions

• Different vendors can

increase the likelihood of

incompatibility

• May not be cost-effective

if you need multiple vendors

• Administrative issues

can occur with separate

solutions

THE CONS OF POINT SOLUTIONS

• Seamless 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

• Better compliance due to

minimized manual entry of

personal data

• Familiar and connected

feel to your HR technology

THE PROS OF ALL-IN-ONE HRIS

• Features may be more

generic than “best-of-breed”

• There is no one system

that offers all “solutions”

at once

• May be a larger investment

upfront

THE CONS OF ALL-IN-ONE HRIS

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04

Factors to consider

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Before going down the route of point solutions or an all-in-one HRIS, consider these factors.

What are your current HR challenges?

When navigating the selection process of single point solutions versus all-in-one HR platforms, determine what your challenges and goals are. Let’s say your HR team has decided to establish more fair compensation practices after your organization conducted a pay equity audit. Your company already utilizes a core HR system and just needs a supplemental compensation management point solution. In this scenario, the point solution may be a better option, since it could be less expensive than purchasing and implementing a completely new HR platform, and it could also require less time for executive approval.

However, it’s important to evaluate your long-term needs. Going for the point solution in the above scenario would suit your immediate needs — but would it also meet your future ones? Let’s say your organization recognizes fair compensation ties to employee wellbeing. If you want your HR platform to include employee wellbeing tools in the future, it’s important to evaluate whether you would need — and be willing to hire — an additional vendor for that.

When navigating the selection process of single point solutions versus all-in-one HR platforms, determine what your challenges and goals are.

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What is your budget?

Purchasing an all-in-one HRIS system may require a larger investment upfront. However, if you end up starting with a point solution and adding more vendors over time can add up to be more expensive than a single platform.

There are also training costs and time to consider. HRIS systems come with a single interface; once your employees master navigating the system, they’ll have the basic foundation for using the full range of functions. It’s important to compare that with the cost of training staff on multiple best-of-breed implementations.

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How much time can you devote?

Although single point solutions have their benefits, having multiple solutions that integrate with one another requires more time to manage than having them under a single, unified platform. Ask yourself: how much time spent on transferring data between separate vendors are you willing to tolerate? If you don’t want to spend time during your day-to-day dealing with system integrations, then take this into consideration.

It’s also important to check in with your IT on the time they can spend on implementation, as well. 41% of companies attribute the success of their HR software to a close relationship between IT and HR — so make sure to evaluate the technology capabilities of potential vendors and possible implementation challenges and complexities with your IT team.

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41% of companies attribute the success of their HR software to a close relationship between IT and HR.

Here at Zenefits, we believe in those that power the American economy: entrepreneurs and employees in small-to-midsize companies.

Their tenacity, perseverance, and dreams are what represent the backbone of our workforce — yet they face challenges disproportionate to their size and resources. Technology providers largely focus on the needs of large businesses, creating services out of touch and out of reach for small and mid-size businesses.

As a company who recognizes these problems, we bring innovative and intuitive HR, benefits, and payroll software and services purpose-built for SMBs.

Explore our HRIS platform and book a free demo today.

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