All-in-one HR tech: Why advisors should think twice

Convenience is often a great motivator in getting someone interested in a product. Being able to complete tasks with ease is such a strong selling point, and that’s why all-in-one HR technology solutions are so attractive. Who wouldn’t want to streamline HR processes and easily access all components of HR in one system? 

As the saying goes: if it’s too good to be true, it probably is…

All-in-one solutions that include a benefits component may claim to do everything your clients need, but clients will quickly realize that the system can’t handle their unique complexities, resulting in a frustrating benefits process for both HR and employees.

Technology that bundles all components of HR may seem like an easy option for employers who don’t know what they need. But in today’s HR ecosystem, specialized tools are available for all components of HR. Benefits administration software is one aspect you shouldn’t compromise on.

HR technology that is simply not designed for benefits

There are many employers using technology that was offered to them by their HCM or payroll provider. The software handles multiple components of HR like payroll, benefits, HCM, etc. On paper, it sounds like a great, cost-saving way to streamline HR processes and eliminate duplicate data entry.

Here’s the problem: These systems are built around payroll being the top priority. And while the payroll functionality may work great, the benefits functionality falls short. As a result, HR must resort to using workarounds and performing manual data entry, which increases the risk of costly human error. 

Client service is lacking

Employers mistakenly assume that with an all-in-one solution, there will be one support team for any software issues. But this is almost never the case. Employers can expect to deal with one contact for payroll, and another for benefits. Instead of getting a cohesive service experience, the inquiry will bounce around until it ends up with the right team.

All-in-one technology leaves brokers out of the equation

Brokers who endorse all-in-one solutions risk cutting themselves out of the picture. Companies that offer all-in-one solutions want your clients’ business. They’ll try to attract and retain your clients by offering benefits-related services like COBRA administration, dependent verification audits, HSA/FSA/HRA administration, and ACA reporting. 

Avoiding these companies allows you to continue retaining and growing your book of business. After all, your clients go to you first for these services. Equip yourself with knowledge and awareness of the market, along with strategic partnerships, to continue acting as a trusted benefits advisor.

Cultivating an HR ecosystem

Although all-in-one solutions fall flat, that doesn’t mean the hope of streamlining HR processes is lost. In fact, many businesses have enhanced their HR processes by cultivating an HR ecosystem. In other words, the most effective HR strategies deploy best-of-breed technology for all components of HR and connect them together to form a harmonious HR ecosystem.

Connecting systems together allows data to seamlessly flow between them. This eliminates the need for duplicate data entry to payroll, carriers and third-party platforms. When an organization deploys this strategy, they can truly streamline their HR processes.