One of the findings of the most recent CedarCrestone HR Systems Survey is that a lack of an integrated HRMS and talent management solution is costly for delivering business intelligence. The average cost per employee for the BI solution set among those with integrated HRMS and talent management is $13 per employee. Those with a disparate set of talent management solutions, including a variety of best-of-breed talent management solutions, are spending $18 per employee this year, over 25% higher, and report their forecast costs will double to $36 next year while those with an ERP-based talent management approach will see their costs go down to $8 per employee, 70% less!
We’ve recently been digging into our survey results to see why those costs are higher and we see one contributing reason – more interfaces. Beyond asking about expenditures for different solutions, we also ask respondents to specify the average number of system interfaces to and from the HRMS. We find that those organizations that take a best of breed talent management approach have 34% more interfaces that those with an ERP-based talent management solution built on the underlying HRMS platform. That underlying HRMS platform is PeopleSoft, followed by Oracle EBS, SAP and Lawson. Those with the best of breed approach average 31 interfaces and those with the ERP-based talent management approach have 23. It would seem that the complexities of having a talent management solution with disparate solutions, most often from vendors such as SuccessFactors or Taleo as well as other integrated talent management solution providers require a higher amount of integration effort, contributing to a higher total cost of ownership.