All-in-one HRIS Systems vs Best-in-class HRIS Systems

Brett Ungashick
OutSail HRIS Advisor
July 4, 2023
user comparing HRIS systems

When buying HR software, one of the key decisions that a buyer needs to make is deciding between: 1.) an all-in-one HRIS system from a single vendor or 2.) opting for a best-in-class approach that involves multiple standalone vendors.

Twenty years ago, buyers did not have the option of getting an all-in-one system because technologies were so siloed. Payroll tools only processed payroll and ATS’s were solely focused on recruiting.

However, over the past fifteen years, vendors have broadened their offerings. Payroll companies started offering time tools, then performance, then recruiting, and on down the line. Soon you could get every module from a single provider; and many buyers decided to take this approach.

But in the last five years, as there has been a resurgence of modern onboarding, performance, learning and recruiting tools, the pendulum has started swinging back towards the best-in-class approach.

Many buyers are still split on which approach they should take, and there isn’t a one-size-fits all answer. It’s all about what makes the most sense for your organization. Here’s how you can decide:

Looking for hard-to-find HRIS pricing data? Get precise estimates with our app.

The case for all-in-one

Core HR is priority #1

The foundational element of an HR technology stack is the Core HR system. This is the system that houses your employee information, collects time data and processes payroll. Once a Core HR infrastructure is in place, companies can then look into Talent Management. Talent Management includes the set of tools that help you recruit, develop and retain your workforce.

Most all-in-one HRIS systems started off as payroll tools - think Ceridian, ADP, UltiPro, Paycom, Paylocity, Paycor, etc -  and these platforms have built up their expertise around Core HR. While these systems can all offer Talent Management modules too, they have less expertise in those areas and their products have less depth.

If solving Core HR is your number one priority, and talent management is not as much of a focus yet, then you should consider an all-in-one HRIS platform. The ATS or the LMS that your all-in-one provider offers may be a bit lean on functionality, but you don’t need the extra bells and whistles until your HR tech strategy has solved Core HR first.

Simplicity

One of the big advantages of taking an all-in-one approach is that you only have one vendor covering all of your HR technology needs.

This means that employees only have to download one app and remember one login, in order to handle all of their HR technology needs. It also means that when things go wrong, you only have one customer support contact to reach out to for help.

Efficiency

Another reason that companies opt for an all-in-one provider is because data typically flows more effectively throughout a single system than it does across multiple systems.

This can help reduce the amount of manual re-entry that administrators have to do. It can also make reporting easier, since generating reports from an all-in-one system is often easier to do than downloading and combining reports from multiple systems.

One thing to note, however, is that not every all-in-one system is actually a single database on the back end, so it can be the case that you get an all-in-one provider and still have to do manual reporting or re-entry. (The OutSail team can help let you know which systems are built like that).

The case for best-in-class

Talent Management is your biggest focus

For companies that already have an effective Core HR infrastructure, starting to build a best-in-class suite can make sense.

Once companies have sufficiently automated many of their transactional HR tasks, they can start to focus on more transformational tasks, such as proactive recruiting, employee engagement strategies, modern performance reviews and more.

If your company is at this stage, it can make sense to look for best-in-class providers in each of those verticals rather than adding another module from your current provider, which may not deliver the level of sophistication that you need.

Domain expertise

One great thing about best-in-class providers is that they are singularly focused on delivering a top notch ATS or LMS or Performance Management system.

Because of this dedicated focus, these companies can oftentimes deliver a more complete set of features and functionality. These companies are also often on the cutting edge in their industry and rolling out new features ahead of their more broadly-focused peers.

Additionally, you can find a great deal of thought leadership from standalone providers because they are so deeply entrenched in a single vertical.

Many all-in-one vendors are already taking a best-in-class approach

Another compelling reason for taking a best-in-class approach to your HR suite is because most all-in-one vendors are already doing the same.

With a few notable exceptions, most all-in-one HRIS systems have added new modules by either acquiring or white labeling pieces of technology that they don’t offer in-house.

When all-in-one HRIS vendor’s take this approach, they are essentially admitting that they can’t be a market leader across every module. If that’s the case, then maybe it makes sense for your team to only buy their most effective modules and go looking for best-fit tools to fill in the gaps.

Reports
2024 HRIS 
Landscape Report
Read OutSail's 2024 HRIS Report with write-ups on 30+ leading vendors
Thank you! You can download your report at this link
Oops! Something went wrong while submitting the form.
Services
Unsure about your software needs?
Use our HRIS Requirements Builder to quickly identify your must-have & nice-to-haves
Brett Ungashick
OutSail HRIS Advisor
Accelerate your HRIS selection process with free support
Thank you! Our team will reach out to you shortly
Oops! Something went wrong while submitting the form.

Meet the Author

Brett Ungashick
OutSail HRIS Advisor
Brett Ungashick, the friendly face behind OutSail, started his career at LinkedIn, selling HR software. This experience sparked an idea, leading him to create OutSail in 2018. Based in Denver, OutSail simplifies the HR software selection process, and Brett's hands-on approach has already helped over 1,000 companies, including SalesLoft, Hudl and DoorDash. He's a go-to guy for all things HR Tech, supporting companies in every industry and across 20+ countries. When he's not demystifying HR tech, you'll find Brett enjoying a round of golf or skiing down Colorado's slopes, always happy to chat about work or play.

FAQ

Everything you need to know about OutSail
What is OutSail?
OutSail is the first-ever broker of HR Software. We offer market insights, evaluation tools & advisory services to help organizations research, evaluate and select the right HR software. And best of all - OutSail is free!
How is OutSail free?
OutSail is free due to our one-of-a-kind software broker model. When a company makes a purchase through OutSail, the winning vendor owes us a small fee for making the introduction.

No Hidden Fees - You don't pay for our services and the vendors don't pass our costs along either
Vendor Agnostic - OutSail partners with 220+ HR Tech vendors including every market leader
What are the benefits of OutSail?
1.) Market Insights: Access the industry's most trusted data. Read user reviews of every leading HRIS vendor. Access verified pricing data. Use proprietary tools to sort & filter by your selection criteria.
2.) Evaluation Tools: Access to project plans & timelines. Customize your own scorecard tools. Leverage expert-generated demo questions. Collaborate with your team
3.) Advisory Services: Work with HRIS industry experts. Assistance during proposal review and guidance for negotiations. Implementation readiness
What if I'm a broker, consultant or vendor?
We love partnering with brokers & consultants and bringing innovative vendors to our customers. Follow those links to learn more about how we can partner together and bring OutSail's benefits to your customers.

The Future of Software Buying

See why modern buyers prefer OutSail's broker model when buying their next HRIS