Five organisational benefits of an integrated HCM system


Organisations have realised the importance of one single human capital management system replacing the numerous products used for different functions, processes and verticals. The companies which have crossed the fence are now reaping the benefits.

We have all been witness to the possibilities that a connected world offers—free flow and sharing of information, which translates into better commerce, and finally, growth. The same rule applies to organisations as well. When there is uninterrupted flow of information across departments, it spells growth. And what makes this possible is an integrated human capital management system (HCM).

Organisations have realised the importance of one single HCM replacing the numerous products one uses for different functions, processes and verticals. The companies which have crossed the fence are now reaping the benefits.

Picture this—a global electronics company has several subcompanies under its umbrella, primarily as a result of acquisitions. This means 40 different HR systems within the company. Truly a nightmare! Though all units and companies are part of the same group, they all work as independent entities, with separate processes and systems. This leads to inefficiency. The only answer to this problem is one single human capital management system for all.

Components of a unified HCM System The benefits of an integrated system are many. HRKatha has done an in-depth study to find out the five major benefits of a unified HCM.


When it comes to data, the first thing that people want is accuracy. An integrated system provides just that. It is a known fact that the more one copies data from one platform to another, the more are the chances of human error. In an integrated system, where the data is entered at the very onset of the job application by a prospective employee and remains intact throughout the process, any possibility of human error is minimised. One employee record, one user experience and zero interfaces eliminates siloed information. The outcome is accuracy of data. If the data isn’t accurate, it isn’t useful.

Actionable Insights

When a single data source is integrated across platforms, it offers a simple solution — better analysis and actionable insights. When information and analytics are brought in together, it allows employees to get the information they need. An integrated data captures all kinds of data for an employee, be it their performance, learning achievements, 360 degree feedback or compensation. This means one can integrate the learning and talent strategies with workforce management, and communicate the same to the employees. It encourages constant learning and skills development and provides the resources and tools required to impact workers.


Learn how a holistic HCM system will provide you with personalised tools that engage every employee in a unique self-directed path for career growth and mobility.


A collaborative environment The key to a successful business is when all its functions work in tandem with each other and not in silos. An integrated system fosters and promotes a culture that supports greater collaboration to reap the full rewards.

Imagine how leaders in all business functions—including CxOs, HR practitioners and line-of-business managers—need accurate and accessible workforce information to make the right decisions to support their objectives. To provide this level of visibility, organisations are integrating HR processes and information into holistic HCM systems. These systems encompass numerous strategic HR processes that enable companies to effectively plan, hire, align, develop, reward, manage, and analyse a high-performing workforce.

Empowerment for employees A tool for employees to work remotely, manage their schedules from their smartphones, and easily communicate with others on a project makes a difference in their productivity. An integrated HRMS system offers employees self-service tools, such as planners, document management, biometric timekeeping, and absence management. These not only increase employee productivity, but can also be valuable recruiting tools. As millennials begin to make up a large percentage of our workforce, business owners must implement tools that allow for the flexibility they desire.

Reduced Cost The biggest impact that an integrated HCM system has is on the cost. When information is available in one place using one user interface, workers spend less time looking for what they need, managers spend less time collating data and IT groups spend less time building and maintaining costly integrations between systems. All of these lead to reduced expenses.

Yes, there may be some initial costs to integrate systems, and these may seem daunting too. However, the actual RoI numbers prove that short-term investment leads to long-term gains.


  1. My question is do we have a ‘Unified’ HCM solutions anywhere in the globe.
    Second opinion do not invest on any new platform just because there is a budget to be spend – do it only if you are ready for ‘change’.
    Interesting discussion though.

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