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Pros and Cons of All-in-One HRIS: Is it Right for Your Workplace?

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Software tools should make life easier, not lead to confusion and unnecessary processes. But all too often this is the case because of a lack of integrations or poor user interface. Sometimes it's even the selection process that causes headaches. And when it comes to HR technologies - a market expected to reach $10 billion by 2022 - it's a safe bet that sorting through the different options can be overwhelming. One of the most important decisions HR leaders must make is choosing between an end-to-end, all-encompassing human resources information system (HRIS) and best-of-breed point solutions. The former provides a central location from which most, if not all, facets of HR work can be completed. At the same time, the latter offers companies flexibility in terms of budget and as a solution to certain problems. Let's take a closer look at the advantages and disadvantages of HRIS solutions.

What is an All-in-One HRIS?

A human resources information system (HRIS) is an interface between human resources and information technology in the form of HR software. This system allows HR activities and processes to be handled electronically on a single comprehensive platform. HRIS offers services directly related to human resources management and also touches on accounting, management and payroll tasks.

What are the benefits of an all-in-one HRIS?

Centralized solution for HR

An all-in-one HRIS provides HR managers with a central location to access employee information, automate otherwise manual processes, and make system-wide changes or updates. Additionally, HRIS are designed as a single solution, so integrations are already built in. This means HR managers have no problems exchanging data between the system's functions, e.g. when onboarding employees and managing general HR tasks, as the different parts exist in the same ecosystem.

Seamless end-to-end process and data flow

The various functions of the system can communicate with each other, allowing for more meaningful reports and the possibility of better data analysis. This gives HR managers a more holistic view of the company's human capital and is better able to make data-driven decisions.

Better compliance

The security and protection of sensitive employee data is one of the most important tasks of an HR manager. Furthermore, this is a legal requirement. A single HRIS supports compliance by minimizing the need for additional entry of potentially sensitive or personally identifiable information into various systems.

More comfort for employees

A single solution for your HR technology simplifies employee self-service. For example, employees can easily apply for vacation, select benefits or adjust personal data via the central system.

Familiarity and connection with your HR technology

HR team members develop a high level of familiarity with their HRIS as they use the system for most HR-related tasks. Unlike point solutions where some are used less than others, HR professionals develop a familiar and connected feeling with the HRIS.

Disadvantages of an All-in-One HRIS

Higher price

With any new software solution there are acquisition and maintenance costs, but with a holistic platform like an HRIS, the upfront investment is usually slightly higher. These can be difficult to shoulder, especially for smaller companies.

Less flexibility

Because an HRIS bundles various HR functions and information systems into one solution, HR teams do not have the option to choose a specific solution for pain points or use cases.

Human capital

Small businesses without an IT department may need to hire someone to help install and manage the system.

Advantages of point solutions - an alternative to all-in-one HRIS

Point solutions are technological solutions that typically focus on one or two human resources functions. For example, a provider that offers a payroll solution likely also offers benefits selection and management. Here are some of their advantages:


Because you will be using multiple point solutions to cover the range of functions HR needs, point solutions offer more flexibility. HR teams can use a system with more features for e.g. Choose payroll and benefits and opt for a reduced solution for time tracking and attendance.

Lower costs

If your company only wants to solve a specific problem, point solutions can be a more cost-effective solution than an HRIS because the price of the individual software is usually lower.

Best-in-breed features

Because vendors only focus on niche features, point solutions can provide best-in-class capabilities with deep capabilities for a specific HR process.

Disadvantages of individual solutions

Lack of integrations

Many standard point solutions lack the integrations you need to share information between systems. Although there are integrations, these often involve additional costs and seem like a stopgap solution.

Multiple systems and multiple providers

Using point solutions to cover your HR processes can easily result in three or four systems, meaning HR teams have to manage multiple systems and juggle numerous vendors.

Lack of transparency and fragmented reporting

Without a central, single solution for your HR processes, HR teams lack 360-degree visibility into system data. Creating reports can also be difficult as they often have to be requested or created and then compiled separately.

The bottom line - HRIS solutions from a single source

Your HR technology should streamline processes and support the efficiency of your entire team of employees. An HRIS centralizes information and provides a single point of contact for managing the technical side of HR, while point solutions offer flexibility and lower initial costs. A company's needs are as unique as the company itself, and there is no one-size-fits-all solution. Speak to one of our team members today to learn more about how IceHrm helps small and medium-sized businesses address all of their HR needs.

IceHrm offers tailored HR solutions for businesses, whether it's centralized HRIS management or flexible point solutions. Contact us today!

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