The comparison of best-of-breed vs integrated HR systems (all-in-one software) arises because the HR landscape constantly changes. Organizations need to adapt quickly to stay competitive. Moreover, automation in HR management can be a complex issue to tackle. That’s why HR managers must understand the elements they require when it comes to HR workflow automation.
In the past, HR management was a largely manual process — a person would have to manage everything manually from payroll and benefits to hiring, onboarding, and retention. Now, when we have software to automate most of these tasks, the functions are still running in silos; wherein some automation is on one tool and the remaining are distributed amongst others.
Even when these processes are automated to an extent, there is a lack of synergy between the tools. Nowadays, these tasks can be automated through best-in-breed HR technology or an all-in-one integrated HR platform.
In this blog, we aim to help you understand which one is right for your business.
What are ‘all-in-one’ and ‘best-in-breed’ automation in HR?
An all-in-one integrated HR software solution combines multiple functionalities into one software package. It provides an integrated solution for different functions such as recruiting, performance management, talent acquisition, analytics, and reporting. These solutions provide a uniform interface but it also comes with excessive features that are unused.
To help you understand if this type of software is right for your business, we’ve broken down the pros and cons of integrated HR tools.
Pros:
- A single interface allows employees to access all information easily without having to switch between different systems.
- Employees can share files and collaborate across departments using one central hub.
- One system can handle multiple functions with ease — from employee onboarding and payroll management to payroll processing.
Cons:
- Some people prefer having multiple systems because each system has its unique features that may not be available in other software packages.
Best-in-breed HR technology is developed by a company for specific functionalities like recruitment, performance management, etc. It may not include any other features like analytics which are provided by other vendors or third parties. So, if your requirements are complex, specific, and require custom development, then a best-in-breed solution may be more appropriate for your needs.
Additionally, it will be prudent to note that when making a comparison for best-of-breed vs integrated HR systems, it is crucial to know your requirements. This is because:
- It will help you find the right product and match your requirements accurately
- You will have sophisticated tools suited to your organization’s problem areas
- You will save money you would otherwise waste on purchasing either the wrong software or features you don’t need
Here are some factors to consider about best-of-breed software solutions:
- Since the scope is very straightforward, installation becomes very easy.
- They tend to be less complex than their all-in-one counterparts due to their specific functions.
- Training the staff becomes easier.
- Since the organization is now entirely dependent on a single vendor, issues in a particular solution have a lower impact on the team’s functioning power and operations can run smoothly till the issue is fixed.
How do the two types of automation in HR fit into different functions?
Here are some ways in which organizations can reap HR automation benefits across different functions and responsibilities:
Recruitment
When it comes to recruitment, an all-in-one HR platform can offer a unified interface that allows you to have a standard suite of modules that caters to multiple areas of recruitment like resume shortlisting, interview tracking, virtual interviews, etc. With best-in-breed HR technology, HR personnel can enjoy laser-focused features that target specific recruitment needs.
While it is true that an all-in-one HR platform is easier to use and more affordable than best-of-breed solutions, it might not be able to provide the level of precision or attention to detail needed for each function within your organization since its focus is on covering multiple areas of HR.
Each part of the recruitment process is unique and requires specific knowledge and expertise. Additionally, this type of software often lacks flexibility when it comes to customizing modules and adapting them to your business needs. In contrast, if you choose a best-of-breed solution for automation in HR, there’s no limit to how much customization you can do with its features because they were designed specifically for your industry and organization size.
Onboarding
Since integrated HR software is designed with more general capabilities in mind to help businesses manage their onboarding process among other processes, they may not be able to simplify your workflow like best-in-breed HR technology.
With best-in-breed solutions, you can simplify preboarding workflows, integrate them with existing apps like Slack and Loom, onboard new hires and ease them into the company with scheduled meetups, and also take care of onboarding process documentation.
Query resolution
Case management has become one of the most used automation in the HR space, owing to the change in work environment and styles.
HR automation allows you to address employee issues promptly while also being efficient. This is especially helpful when it comes to reducing the volume of emails HR personnel may receive. In the case of basic queries, the software can address them entirely without any human help.
When you use an integrated HR solution for case management, there is a possibility of missing out on important tickets or having them addressed in a fragmented way. However, a human may step in when the query is more subjective.
Regardless, a best-in-breed HR technology can significantly reduce an HR professional’s workload since most of the pain points will be taken care of due to its niche functionality.
FAQ automation
When it comes to the question of best-of-breed vs integrated HR systems for FAQ automation, the advantage goes to the focused solution. With AI-powered FAQ automation software, you can free up your HR team from having to deal with repetitive queries manually and allow them to focus on other important tasks.
If you opt for a best-in-breed HR technology for FAQ automation, it will integrate seamlessly with your existing human resources management systems and processes to provide instant answers to common questions about policies, benefits, and more—all in real time. And because you can customize the responses to align with your organization’s unique culture and style, it won’t feel like you’re interacting with an automated system at all!
When it comes to FAQ automation, best-of-breed automation can also help you save crucial HR personnel time and resolve employee queries within seconds. If powered by AI, this type of automation software responds to queries round the clock which helps in streamlining the process and reducing the average resolution time.
Payroll management
When deciding between best-of-breed vs all-in-one HR software for payroll management, start with a simple question: what are your company’s payroll requirements? The answer is probably not just one thing.
You need to calculate tax withholdings and make sure they are paid on time, you need to send out payments promptly and provide each employee with salary slips, while also handling employee benefits and other deductions. And that’s just the beginning!
For payroll management, a robust all-in-one HR platform that can take care of your company’s end-to-end requirements are rare. That’s why a best-of-breed software approach is preferable. This is because they can integrate well with existing HRIS and offer a seamless experience. When it comes to doubt clearing regarding payroll processes, the best-of-breed solution can be integrated with AI-powered solutions like Leena AI. This will allow your employees to receive payroll-related documents easily.
With an all-in-one solution, you will have to make sure that the software you choose can work seamlessly with other programs in your office such as HRIS and time tracking apps. If not done correctly, this could cause delays or errors in payroll processing which could result in serious problems down the line such as employee dissatisfaction or even lead to worst-case scenarios like legal action against your company.
Offboarding
The employee offboarding process can be tedious and cumbersome for the HR personnel responsible. The task list that needs to be completed during an employee leaving is long—ensuring pending tasks get completed, facilitating smooth knowledge transfer, documentation, and exit interviews, are a few activities involved. So, automating these processes with the help of standalone automation tools will help in ensuring that every step of the employee offboarding happens properly.
Employees departing from your organization will be future ambassadors for your company. If an employee has had a below satisfactory experience at your company, a smooth offboarding process can prove to be damage control. However, if they have had a good experience during their tenure, your offboarding process is not where you want to lose them. Essentially, a stand-alone AI-drive offboarding program reduces the room for human errors and lets your employees part with dignity and grace.
Verdict: Best-of-breed vs integrated HR systems
When it comes to choosing one, we say it’s always better to use best-in-breed HR technology wherever possible. But in such cases, there is a chance that the tool may or may not integrate with the other tools you’re making use of at the organization.
Seamless integration of tools is an important aspect to look into as HRs typically work in sync with other departments. This may include individual departments like IT, Admin, Tech, etc.
The easier it is for data to flow between the tools, the more accurate the steps one can take. The best solution for a company is to choose an HR transformation service that provides the best-of-breed perks all at one stop.
Leena AI brings best-in-breed capabilities together on a single platform. This allows your team and the employees to become free of the hassle of switching between multiple applications.
Popular modules among Leena AI’s suite of services include: Case management, automatic responses about policies, reimbursement, etc.
HR leaders use the Leena AI dashboard to track key HR metrics like:
- Attrition rates
- Participation rates
- Ticket resolution time
- Employee engagement rates
- Cases assigned automatically
Leena AI also integrates seamlessly with popular platforms such as Slack, SAP, Workday, and SIP.
If your organization is looking to up its HR automation plan, Leena AI can help transform your experience with AI.
