Businesses grow and evolve over time just as we do throughout our lives. And as in life, no amount of planning or strategizing can predict everything. Employees come and go, project spending doesn’t always match with the initial proposal, and even a small shift in the market can throw a wrench in any strategy.
In today’s enterprise, business executives and managers need instant, reliable access to rich and current cross-departmental data. But often vital information lives in a variety of disconnected, siloed systems that make it nearly impossible to get an accurate snapshot of the health of the business at a moment in time or how specific events may impact their organization.
In response, many executives are taking a closer look at how integrating different systems — especially enterprise resource planning (ERP) and their human capital management (HCM) systems — can provide the necessary information and insight into their team’s resources to make smart, timely, strategic decisions.
Disparate tools call for desparate measures
Companies like to tout that their people are their most valuable assets. But for many organizations, even knowing how many employees they have, how much they’re getting paid, and which roles and positions still need to be filled or eliminated is a monumental task.
HR teams typically use a variety of tools and systems for recruiting, benefits administration, and a range of other people-related functions. Meanwhile, finance teams rely on enterprise accounting tools to track and manage invoices, departmental spending, and a host of other operations that impact the firm’s bottom line.
But between the two, there’s virtually no overlap and very little integration. Some teams may try to manually reconcile data from each system, but find that it’s time-consuming, error-prone, and terribly inefficient. Instead, finance teams often default to creating annual budgets and departmental allocations based largely on historical information.
The budgets are static, locking both finance and HR teams into an inflexible plan that makes adjusting spending throughout the year impossible and leaves the company at extreme risk of over- or under-resourcing various parts of the organization that can significantly impact its profitability and competitiveness. Finance leaders are left in the dark about how best to support other teams in the organization and HR teams find they can’t adapt hiring and staffing plans to account for:
- New positions they’ll need when the company brings on a new customer
- The different skills or qualifications for various projects
- Addressing resource demands across offices, markets, or customer accounts
While annual planning may seem forward-thinking and productive, the harsh reality is that without consistent communication and real-time visibility into core business metrics throughout the year, companies inadvertently put themselves at a distinct competitive disadvantage because they’re so often working from outdated, incomplete, or inaccurate information.
Integrating HCM and your NetSuite ERP for efficiency and visilibty
To alleviate these challenges and get an accurate resource analysis at any time, companies are increasingly beginning to integrate their HCM systems with ERPs like NetSuite.
By integrating HCM tools and NetSuite, HR managers have easy, reliable access to rich data around current and projected headcounts, labor and resource allocations, and projected salaries versus actual payouts that make it easier to align the workforce with company targets.
Both HR and finance leaders can perform “what-if” analysis to understand the financial impact of different workforce and HR-related assumptions down to the cent.
They can see how adding new sales reps might influence quarterly revenues and, therefore, how many heads the sales team can add. They can model how a small change in operating expenses and margins might impact overall profitability and adjust bonuses, salaries, and other employee-related expenses accordingly to maximize operating income. And they can work together to find ways to respond faster and more appropriately to ever-changing business needs.
Next-level operations SyncHR HCM
SyncHR’s cloud HCM is purpose-built to provide the flexibility and extensibility today’s HR and finance executives need to improve efficiency and assert greater control over their business operations. SyncHR seamlessly integrates with leading ERP systems like NetSuite, giving business leaders the ability to manage HR, benefits, payroll, and budget allocation from a single environment.
The solution is chock full of tools and features that increase workforce visibility and achieve greater financial transparency and efficiency, including:
- Automatic organizational structure syncing to effortlessly add locations, departments, or divisions simultaneously in NetSuite and the SyncHR HCM
- Bi-directional syncing of employee data as new employees are added and departing workers are removed
- Self-balancing sub-ledgers and streamlined account summarization
- Robust, configurable reports that give users the ability to drill through to employee-level detail.
The result is that businesses of all shapes and sizes benefit from streamlined and more accurate labor costing by project, tasks, and/or cost center. SyncHR even helps teams manage complex FLSA and state-specific labor rules on topics like overtime, meals, and breaks or paid time off.
In today’s competitive business landscape, companies can’t afford to wait around an entire year before they adjust their hiring and spending plans. Integrating existing ERP systems like NetSuite with powerful, flexible cloud HCM solutions like SyncHR is key to eliminating the data gap between HR and Finance and gaining the intelligence, insight, and agility they need to meet the ever-changing needs of their business.
Schedule a free demo today to see how integrating your NetSuite system with SyncHR can dramatically improve your operating efficiency, cost management, and cross-functional collaboration.
Back To Resources