The last few years have seen a shift in how companies manage their people. Traditional HR was always an admin-heavy role, responsible for finding, screening, recruiting, and training job applicants while also taking care of their compensation and benefits. But lately, this function has evolved into so much more. Many modern companies have upskilled their traditional HR team to a people-first team, tasked with developing and implementing strategies that emphasize employee experience and company culture while also creating plans for employee recognition and growth. In line with their new function, many HR teams now use more modern and people-centric titles, such as the People Team, People and Culture, or People and Development.
This evolution in HR has also been accompanied by an explosion in HR tech tools designed for people professionals to manage and prioritize their people and support their expanding roles. From various HR platforms to a wide array of point solutions, choosing the perfect HR tech stack for your business is a strategic decision.
And while we believe that implementing an HR platform that supports multiple HR functions is preferable to purchasing several point solutions (more on that later), we know this great debate is not a simple one.
So, let’s break it down by taking a closer look at:
- The advantages and disadvantages of platform solutions
- The advantages and disadvantages of point solutions
- Comparing platform solutions to point solutions
- Introducing Bob, the HR platform for modern, mid-sized, multi-national companies
- What our customers say
Let the debate begin!
HR tech for people management
Let’s start with some basics. There are many different tools available that support the modern HR professional’s wide range of roles. These tools can be divided into two main categories:
- Point solutions are specific tools that focus on delivering a singular value proposition or solving a particular problem. In the world of HR, these include individual tools designed for functions such as performance management, payroll, benefits management, and culture and engagement.
- Platform solutions provide a foundation of flexible tools that address multiple tasks or problems and create a unified process across the entire employee lifecycle. They are often scalable, enabling companies to add modules as their business needs change or as they grow.
When deciding which type of HR tech to implement, companies usually consider their current needs, budget, and internal resources. So, for example, a smaller company might choose to implement a lower-cost solution—like a payroll system that also provides basic HR tools—to satisfy their immediate needs. As they scale, however, they may find that this setup is no longer sufficient, and they’ll need to buy several additional point solutions to make up for the gap in functionality.
When making this decision, you need to consider your long-term strategy—where do you expect to be in the next 3-5 years, and will your current technology stack be enough to get you there?
HR platforms: Advantages and disadvantages
Advantages of HR platforms
The main advantage that HR platforms offer is one HR system as a single source of information on your people. Instead of using multiple tools to solve different HR problems, an HR platform has everything that the People Team needs in one place.
This means that all data relating to all HR processes, from compensation to performance to payroll, can be viewed and managed from one central location, providing a holistic view of the entire organization. Plus, because all of your people data is centralized in one place, you avoid “data silos,” where data is saved in different locations and not easily accessible to all stakeholders across the organization. This can cause inconsistencies and negatively impact data quality.
For scaling companies, many HR platforms offer the flexibility to buy a core package to satisfy your short-term needs and then add modules as your needs change, which helps to reduce costs and allows you to scale up as you grow. So, for example, a smaller company may not want to invest in a talent module initially. However, as they grow and their needs change, they will need to implement talent and additional modules that support their people.
Implementing a single HR platform isn’t only beneficial for HR. It benefits employees across the organization. Instead of having multiple tools for every part of the employee experience—one tool for performance reviews, one tool for surveys, one tool for requesting vacation days, and so on—they have just one platform to log in to. That means only one user name and password to remember and more engagement in one place. All of that engagement leads to increased data for the People Team, which leads to better planning and programming for your people. It’s a data-rich, employee-friendly cycle.
Plus, if you or your people encounter problems, there is just one technology partner for troubleshooting and maintenance, saving valuable time and avoiding the headaches associated with chasing multiple service providers.
Disadvantages of HR platforms
An HR platform may require a sizable investment up front and a longer time to implement. While HR platforms are wider in scope and able to solve multiple pain points, sometimes they cannot provide the best-of-breed functionality that point solutions can.
Point solutions: Advantages and disadvantages
Advantages of point solutions
Point solutions are fast to implement, offer deep functionality in one area, and provide companies with the specific tools they need to solve a problem. Point solutions do not require a sizable initial investment. Rather, companies can add point solutions to their tool kit slowly as they scale.
Disadvantages of point solutions
As point solutions are designed to solve specific problems, you’ll need to implement several solutions to meet your growing needs, which can end up being very expensive (and more than the cost of an HR platform in the long run.)
Choosing to implement several point solutions means that both HR and employees need to learn how to use multiple tools and manage them on a daily basis. So, for example, a company may have one system for time and attendance, another for time off, another for managing performance, and another for employee collaboration.
Managing multiple tools creates a complex work environment, both for the individual employee and across the organization. They may not integrate with each other, and using multiple tools can impact engagement. It also means that employees must remember multiple log-ins and passwords, leading to security risks and managing numerous vendors, which can be frustrating and time-consuming.
With no single source of truth across point solutions, you may also have to search across several tools to collect the data you need. Having data scattered across tools can lead to data inconsistencies and a lack of data integrity if the data is not regularly updated and the different tools don’t integrate with each other.
HR platform vs. point solutions
Introducing Bob: The HR platform for modern, mid-sized, multi-national companies
When investing in HR tech, you need to carefully consider your long-term needs and weigh the advantages and disadvantages of implementing an HR platform against managing multiple point solutions and vendors. Bob is an HR platform that not only grows with you but also sits at the center of your tech stack ecosystem, seamlessly integrating with all your favorite tech tools.
Bob ticks all of the boxes for modern, mid-sized, multi-national companies looking for an HR platform to help manage and automate all of their daily processes across the employee lifecycle. Bob is a global platform designed to support your people across geographies, including multiple languages, currencies, and global calendars.
Sold in modules, Bob enables you to scale up as you grow and as your needs change. The Core HR module provides a comprehensive package for managing your people and building an engaging and inclusive company culture, including:
- Automated workflows and task lists for managing day-to-day HR tasks
- An advanced people analytics module providing people data and KPI dashboards on frequently used metrics such as headcount, growth rate, employee turnover, and DE&I
- A centralized place for storing all of your people docs
- An engaging homepage for company announcements, celebrating birthdays and milestones, and recognizing your people’s accomplishments
- Org chart and clubs for getting to know the people you work with and your company’s structure
You can also add additional modules, such as Performance Management, Compensation Management, Payroll Hub for integrating payroll, Time and Attendance, and more. All of Bob’s modules are designed with deep functionality and enable HR to view and manage all of these critical processes seamlessly and effectively from one central location.
In addition to its package of modules, Bob also integrates with a marketplace of additional tools, from ATS to LMS to team collaboration tools, enabling you to seamlessly manage all of your work processes and placing Bob at the center of your tech stack ecosystem.
As a powerful HR platform with an ecosystem of integrated apps, Bob enables you to choose the best tools for your business. In contrast with some HR platforms that include a built-in ATS or payroll system, Bob provides you with the flexibility to choose your preferred tools and change them according to your evolving needs or as your company scales.
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What our customers say: testimonials
Our 1700+ customers vary in size and industry and chose Bob as their HR platform for a wide range of reasons. However, top of mind is Bob’s multifunctionality, enabling People leaders to manage all of their HR processes in one centralized platform and Bob’s integrations with their favorite tools.
There should be no debate in making the right choice
There are many tools available for managing HR, each with its own benefits and shortcomings. While you may prefer to address your immediate needs and make a smaller initial investment by implementing a point solution, you may regret this decision when you scale and your needs grow. Implementing multiple point solutions is more costly than implementing a single HR platform, and these costs are not only financial.
An HR platform such as Bob offers a one-stop-shop for all things HR, supporting your people across geographies with comprehensive modules covering the entire employee lifecycle and providing a single source of truth on all your people data. Bob sits at the center of your HR tech stack ecosystem, integrates with your favorite tech tools, is fully customizable, and grows with your company.
Debate closed.