If you're managing learning management systems (LMS), performance management systems, and the various content authoring and upskilling platforms that make up your HR technology stack, you might start thinking about integration. That's natural.
Using too many tools and apps can increase costs and lead to unnecessary spending. But that doesn't mean everything needs to be eliminated or integrated to the detriment of features essential to effective employee development. The key is to strategically integrate, streamline the technology stack, and reduce costs without sacrificing learning and development (L&D) efforts.
Is your organization overloaded with standalone solutions?
According to the Bridge
The future of learning technology According to a 2023 report, 44% of organizations reported having between 3 and 9 (or more!) standalone solutions dedicated to learning. This shows that a large portion of organizations could benefit from integrating tools. Industry analyst Josh Bersin also notes that organizations are adopting his 80 to 100 HR-related tools and technologies. This is an overwhelming situation for many people.
Over-implementing HR technology can be costly, not only financially, but also in terms of employee productivity and administrative burden on HR teams. As the bridge proves, The future of learning technology The report finds that a large amount of software will inevitably lead to increased spending, with nearly half of organizations estimating that they will spend more than $500 per employee on technology learning between 2023 and 2025.
And when dealing with the cloud, expenses often get out of hand. According to a Forrester report, 94% of organizations experienced avoidable cloud spending in 2022. Also, according to the following internal data: tech crunch, this type of overspending tends to be significant, with the average hovering around 30%. This financial burden is a major factor for IT executives, with 69% citing cost-cutting concerns as a motivator for vendor consolidation.
However, mere consolidation does not guarantee cost savings. Short-term cost savings can have long-term effects.That is, the important thing is how you integrate.
How to streamline HR technology costs without using false economies
You don't have to look far to see that cost reduction is just one piece of the integration puzzle. According to the CIO's report, 80% of respondents cited too many solutions as their main concern, along with factors such as efficiency and quality of service. This suggests that integration should aim for a balance between lowering costs, increasing quality, increasing efficiency, and reducing the number of tools.
Consolidation is a strategic financial move that requires a balanced approach that considers reducing costs, improving quality, increasing efficiency, and reducing the number of tools used. Employee training and development capabilities, like software spending, are directly tied to profits, productivity, and cost savings, and you don't want to sacrifice the former while trying to reduce the latter.
Let's now look at some examples of how integrations focused solely on cost reduction can undermine the efficiency of technology stack rationalization.
Avoid poor retention rates
The Chartered Institute for HR and Development points out that effective performance management contributes to employee engagement and leads to improved retention rates. An integrated approach, especially performance platforms, can have a significant impact on employee retention. Compromising the quality of performance management by forcing processes onto the wrong HR platform can reduce employee engagement and retention, offsetting the platform's savings.
On the other hand, integrating learning and performance management systems into a single platform streamlines operations and improves the quality of performance. Aligning performance goals with training recommendations and sharing development data across a consistent system increases employee satisfaction and retention, driving long-term engagement and organizational success.
Protect your organization from regulatory penalties
It may seem ideal to integrate all L&D and HR needs into an HRIS. That way you have all your tools in one place. However, while an HRIS manages employee data well, a dedicated his LMS is best for training and development. If consolidation results in limited learning capabilities, lack of support, or a confusing interface, employees may be reluctant to complete training, such as mandatory compliance sessions. This shows how consolidation can be counterproductive and jeopardize potential penalty savings.
Choosing an all-in-one LMS with powerful integration capabilities allows you to seamlessly combine L&D functions within your HRIS. This approach maintains the effectiveness and ease of use of a dedicated learning solution while maintaining the convenience of an integrated system, making important training more accessible to learners.
Stay invested in your HR technology
When it comes to training quality, our feature-rich learning and performance platform goes beyond just avoiding regulatory fines. In fact, a report by Deloitte found that the top 30% of car dealers (in terms of profits) invest more in training and development than lower-profit car dealers.
Deloitte's research is a great reminder that L&D is an investment. Consolidation should not negate the benefits of a strong L&D infrastructure. It's important to streamline your technology stack while maintaining important aspects of learning, performance management, and skill development. All this with an all-in-one learning and performance solution.
So what is smart L&D integration?
Consolidation doesn't have to mean slashing L&D resources or cramming every learning and performance management function into an HRIS. It's about combining all the key aspects of employee development, from learning and performance to the analytics and data that connects it all, within a single purpose-built platform.
Along the way, you may find that you streamline your tech stack, reduce the number of unwieldy logins, and spend a little less, all while maximizing your investment in high-quality L&D. .
Smart integration means leveraging centralized learner data so that each element of your workforce development infrastructure can inform and enhance the others. The right all-in-one L&D platform seamlessly guides learners from performance goals to targeted learning through automated upskilling capabilities, with every step monitored and reported through comprehensive analytics.
