Is Core HR Changing?

Workforce.com has an article available exploring how the perception of core HR software is changing as new players enter the market. It raises some very interesting questions about how HR processes and functions are evolving. Applications and features that might not have been considered “core” are now viewed as essential by many organizations. At the same time, traditional ways of delivering core HR applications are losing ground. Employers are getting used to the idea of hosting even the most basic aspects of personnel data on an HRMS in the cloud or on a server operated by an SaaS provider.


The most obvious difference between the HRIS of today and 15 years ago is advanced reporting capability. Companies aren’t content to simply use HR to administer a workforce anymore. True human capital management is coming into its own – and the decision-making process is driven by data, data, and more data. A core HR suite that doesn’t provide business insights is missing fundamental functionality.

SaaS Vendors Rely on Affordability to Build Market Share

For large businesses with an established on-premise HRMS, letting go of that substantial investment to go with an admittedly more cost-effective SaaS solution can sometimes be a tough call. There has to be a clear reason to switch based on if the suggested SaaS replacement actually improves HR processes and if it has a good ROI. However, for small businesses just starting up, the choice is a little easier. They can get affordable access to a greater variety of core HR products without having to worry about the IT side of things. Also, they may have fewer concerns about building interfaces with backend systems since their overall IT picture is typically simpler.

Greater Core HR Compliance Is Needed

One area where neither large enterprises nor small businesses can afford to skimp is HR compliance. This aspect of core HR software should be considered just as important as fancy reporting functions. However, many vendors are still lagging behind in building rules enforcement for things like records retention, E-Sign Act compliance, audit trails, and so forth into their applications.

At Emerald Software Group, we’re actually at the leading edge of HR software that focuses on increasing compliance. That’s one reason we consider our Universal Onboarding software a component that should be part of every core HR system. After all, new hire forms are where your HRMS data comes from in the first place. Eliminating errors and omissions in this part of the data collection process should be foundational – not an afterthought.