Are Multiple HR Systems Due to Corporate Acquisitions Causing User Management Headaches?

One of the most disruptive transformations in a company is a merger or acquisition. This can leave an organization needing to integrate job roles, departments, locations, and of course, all the employee data between the two companies.

According to the Society for Human Resource Management (SHRM), as many as 70% to 90% of mergers and acquisitions fail to meet their anticipated financial and strategic goals. This failure is often tied to HR factors.

It’s not uncommon for organizations to have multiple HR systems, and this problem multiplies when another company comes into the picture through an acquisition. That company may also have its own HR and account management tools, and the systems between the two organizations may not connect.

Some of the various HR systems companies may have include:

  • Core HR management
  • Recruitment
  • Training/continuing education
  • Payroll
  • Benefits system
  • Time tracking and management
  • Talent management

Each system means another user login, privileged account decisions, and ongoing security management for sensitive data kept in HR software databases.

Having multiple systems can lead to several problems for organizations that are trying to optimize the value of a new merger or acquisition.

Duplicate Data

You can end up with duplicate data as HR personnel try to manage the different HR systems and users for each company. For example, it’s easy to accidentally enter an employee into the wrong system, not realizing they already have an account created in a redundant application.

Duplicate data can mean big problems for things like benefits and payroll. It’s also a security nightmare if you have unused employee accounts in any systems that are left open and accessible.

For example, the large ransomware attack against Colonial Pipeline in 2021 that caused gasoline prices to skyrocket in the U.S. was enabled by an unused employee VPN account that was left open and was also not protected with multi-factor authentication.

Time-Consuming Manual Processes

Having multiple HR systems creates a need for more manual processes for data input. Often, these systems cannot be easily integrated, or only one or two can be integrated, but others can’t.

Manual processes lead to both data entry errors and productivity losses. It’s estimated that each manual entry made by an HR professional costs companies $4.70. So if you have 25 manual entries happening per day, that would be over $2,300 per month in productivity costs.

Conflicting Security Policies

Account access security is crucial to handle in today’s cloud-driven world. Most data and business processes are now being handled via cloud applications. Unfortunately, data is only as secure as your weakest user password to the system.

43% of companies have experienced at least ten or more cloud account breaches in the last 18 months. And 79% of companies have experienced at least one cloud breach.

If you have multiple HR systems due to an acquisition of another organization, there is a good chance that these systems may have conflicting security policies.

Policies in one may restrict certain activities, while the other system does not have those same capabilities. This can be a real problem for compliance and risk.

How to Streamline User Management & Bring All Systems Together

Gaining control over your various HR systems and consistent user account security throughout a newly transformed organization can be done. This is accomplished through a tool that integrates “source systems” (including HR, SIS, etc.) with your downstream resources (e.g., account provisioning) to ensure a single source for data flow.

Our provisioning products connect your data source systems so information can flow and sync with other services. So, rather than user records being generated separately in each of your systems, you have one key data source, which then populates your other resources that need that user information.

All your connected downstream services are automatically updated with any updates to the source data.

Benefits of using an automated user provisioning solution in a merger or acquisition to ease the pain of a user records integration include:

  • Eliminates manual processes: Costly and time-consuming manual data entry is eliminated, as the data is automatically transferred and updated as needed throughout all systems.
  • Reduces data entry mistakes: Keying mistakes and duplicate records are mitigated because your systems are automated. You no longer have the risk of records for the same employee having different data in two different systems.
  • Improves Security: Connecting your HR systems to a “single source of truth ” eliminates conflicts with access security that can happen when systems are siloed and not sharing information.
  • Frees up your HR staff for other activities: When your HR team isn’t having to manually process all that user data, it can focus on other aspects of successfully transitioning employees after a merger or acquisition.

Book a Live Demo or Call to Ask Questions!

Reduce headaches with multiple HR systems and improve your chance of post-M&A success. Our automated integration system provides an easy-to-use user management solution.

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References linked to:

https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/mergersandacquisitions.aspx
htthttps://www.tools4ever.com/glossary/what-is-multi-factor-authentication/
https://www.paycom.com/resources/blog/how-manual-processes-cost-you-more-than-just-time/
https://expertinsights.com/insights/50-cloud-security-stats-you-should-know/

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