The Ultimate Guide to HRIS Integrations

HRIS integrations are crucial for streamlining essential HR functions such as employee onboarding, performance management, benefits administration, compliance, etc. They also support broader business operations like accounting and enterprise resource planning (ERP).

Integrating operational tools with HRIS systems can eliminate the need for employers to switch between different applications. It also boosts the adoption of new SaaS tools and minimizes manual data entry errors.

In this article, we will explore what HRIS integrations entail, discuss popular use cases, and examine both the challenges and benefits associated with them. We will also touch upon the common methods for building and maintaining these integrations.

Additionally, we'll introduce how Finch allows you to unlock integrations with 200+ HR and payroll systems using just one API. Tools like Finch are especially valuable when dealing with the complexity of building three or more HRIS integrations.

What are HRIS Integrations?

Today, an average-sized organization utilizes 6-8 HR applications. This requires employees to spend significant time keeping their employment tech stacks up-to-date. Based on our research of 1000+ HR professionals, seven in ten HR admins (68%) say they routinely switch between different employment systems throughout the day. Half (51%) admit doing so leaves them feeling overwhelmed, stressed, annoyed, frustrated, or angry.?

HRIS integrations facilitate seamless data exchange between the primary HRIS (housing employment records) and other software applications. This means that any changes made in one system will automatically appear in another, and actions in one application can trigger workflows in another. This reduces the need for employees to switch between apps frequently.

Types of HRIS integrations

HRIS integrations fall into two main categories based on their purpose.?

• They can be customer-facing and connect your application with a third-party HRIS used by your customers. Employers can authorize your tool to exchange data with their HR systems. For example, whenever a new employee joins an organization, a sequence of onboarding activities must be completed—from enrolling their details into payroll and benefits systems to completing onboarding training and providing access to key business tools. With HRIS integrations, all of these can be automated.?
• Alternatively, HR integrations can be developed for internal use within an employer’s org. This facilitates seamless data sharing with business tools like ERP, accounting, or communication systems. It reduces unnecessary app-hopping for employees and HR managers. For example, you can integrate your HRIS or HCM system with Slack to send automated reminders.

Top HRIS Integrations

HR and payroll represent one of the most fragmented markets in the United States, boasting nearly 6,000 providers processing around $3 trillion in payroll annually for SMBs alone!

Adding to the complexity, the functionalities of HR systems vary widely among different providers. Some offer only HRIS or employee directories, while others provide a comprehensive suite encompassing HRIS, payroll, benefits, and collaboration tools.

As of 2023, Quickbooks, ADP Run, and Paychex Flex collectively hold over 40% of SMB payroll? market share. However, newer tools like Gusto, Zenefits, and BambooHR leverage innovation and integrations to offer diverse HR, payroll, and benefits solutions to SMB employers through a single platform.

Note: Given the abundance of HR and payroll providers, it's essential for any company serving the SMB market to integrate with as many HR providers as possible.?

Building a few integrations with the top five or ten HRIS may cover a decent portion of your customer base, but to serve the remaining half or tap into new regions and industries, you would need to build hundreds of other HRIS integrations. Needless to say, this is tremendously time and resource-intensive.?

To address this coverage challenge, many employment tech companies seek solutions to streamline the development and management of HRIS integrations. If you're developing a solution that requires access to employment data from multiple sources, Finch’s Unified Employment API can unlock hundreds of HRIS integrations in as little as 3 days. Contact us.

?? Building HRIS integrations? Read the rest of our Ultimate Guide to learn different integration strategies, use cases, potential issues, and of course, the solutions.