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Break Free! - How Vertical HR Solutions Ensure Agility

Posted by Teresa Casero on May 19, 2016

Break Free! - How Vertical HR Solutions Ensure Agility

Digital transformation is not just about technology, it is also about the way in which employees engage with an organization. It offers great opportunities for competitive advantage and value creation, though it requires a corresponding transformation within the core of a business in return.

To cope with these changes, companies need to improve their feedback culture and employee development efforts. The ability to recruit and retain valuable employees will therefore have a major impact on a company's performance in the future. Therefore, it is important to count with an HR software that supports and suits your company’s needs. The most common problem at this point is to know what kind of solution is the one that will ensure employee engagement and retention.

According to Deloitte, the trend is unambiguously moving away from the use of traditional HR software and towards a new generation of integrated HR solutions in the cloud. This new market dynamic offers companies great opportunities such as more flexibility and agility, while also increasing the pressure to react in time.


What are the components of an HR software solution?

4 Major Components of HR SoftwareHR management systems (or HRMS) merge information technology with all the relevant components of the HR value chain. The selection of a suitable system can save your company time and reduce errors, as well as improve performance and the quality of decision-making

There are basically 4 major components that allow companies to manage their workforce: Recruiting, HR data management, talent and performance management and payroll.


What are the available options out there?


There are two main options out there when selecting a software solution: investing in vertically sliced solutions that will guarantee a flexible and specialized coverage of the selected components or going for an all-in-one approach by choosing an HR software suite.

On the one hand, a vertically sliced solution is used to describe an HR system that performs one part of the HR value chain in an in-depth fashion. On the other hand, an HR suite of solutions brings all different HR components under “one roof” by covering the whole value chain.

HR Software Types

Vertically sliced solutions are usually powerful tools with an appealing and intuitive user interface. While they do not cover the whole HR value chain, these tools are easy to integrate into the HR software landscape via an interface (API). Therefore, the choice is actually one between an array of connected specialized solutions on the one hand or an all-in-one suite on the other.

Making the right decision with all the options out there can be challenging. Despite the advantages and disadvantages each one has, the truth is that in order to find the suitable HRMS all of their characteristics have to be weighed considering the unique needs each company has.

We recommend that you follow these steps:

  1. Answer this question: What are the functions I really need to cover with an HR software solution? After you have defined your needs, you can go to the next step. Hint: Do not try to start off with e.g. the most advanced competency model when you introduce performance management. Go step-by-step to ensure the organization follows the cultural development.
  2. Do your research on the solutions covering your requirements, whether one or more vertically sliced solutions or an HR suite solution.
  3. Test what works best for you and what your company feels comfortable working with.


Test loopline to find out whether it is the right solution for your business:

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Keep reading to get a more detailed insight on which criteria to consider when choosing your software.



Topics: HR Solutions

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