How to consolidate HR tools: moving from several systems to one

• Mid-market HR teams are increasingly managing too many apps

• Ignoring the situation can lead to an increase in human error, compliance risks, rising costs, and burnout

• All-in-one or consolidated HR systems can save time, reduce errors, and support improved compliance

Tool sprawl (investing in too many apps) is a common problem for HR teams in medium-sized organisations. It happens when you acquire new tools at reaction speed, instead of thoughtfully planning your tech stack.

With an ever-growing list of tools, an unmanageable amount of logins, and confusion over which data is stored where, it’s easy for HR teams to feel overwhelmed and for processes to take longer than they should.

Tool fatigue is real, and you’re not alone in feeling the effects of it. Fragmented HR systems lead to wasted admin time, unreliable data, ineffective processes, and a rising sense of overwhelm.

Fragmented HR systems can cause:

• Slow and manual processes: There’s no easy way to pull data from multiple tools at once, and manual admin work introduces unnecessary delays.

• Inconsistent data: When there’s no single source of truth it’s hard to know which data is the most accurate or control how it’s stored, analysed, and reported on.

• Compliance risks: Every tool introduces the potential for new risks, whether it’s the software’s own security or the way your team uses it.

• Difficulty attracting and retaining talent: It’s hard to create a best-in-class recruiting and onboarding experience with fragmented tools, and the challenges remain throughout the employee lifecycle.

• Low employee engagement: Employees and managers are less likely to use tools correctly if the experience is frustrating, slow, or ineffective — leading to them seeking out alternatives that aren’t approved or vetted.

• Tool overwhelm and confusion: Every tool that joins the stack adds to the overwhelm your team experiences, especially if there’s poor data flow between them.

• Rising costs every time a new tool is introduced: Software subscription costs add up, and it’s easy to miss just how much you’re spending when there’s no strategic approach to buying software.

A fragmented HR system is harder to use, contributes to growing overwhelm, and can have real implications on your software budget. If any of these challenges feel familiar, consider consolidating your HR tools.

Storing all your data in one place saves significant time, but that’s only one of the benefits. Here are some of the main reasons why HR teams switch from fragmented systems to an all-in-one HR platform:

• Single source of truth: Everyone knows where to find the information they need, and it’s always accurate, up to date, and official. 

• Easier to manage: HR teams, managers, and employees don’t need separate logins to manage data or processes — it’s all accessible from one central system.

• More reliable real-time information: HR data is updated in real time, so managers and HR teams can make faster decisions based on actual insights rather than assumptions

• Scalable workflows and processes: Your processes work now for your team of 250 and they’ll still scale as you hit 2,000+, with no need to switch HR systems or add to your tech stack.

• Reduced risk and improved compliance: All your data, workflows, and documentation lives in one central and secure system, making it easier to comply with employment law and data protection legislation.

• Improved user experience: Employees and managers can access everything they need in a few clicks, so they’re more likely to use the system instead of emailing HR for help.

• Easier to budget for: There’s one monthly (or annual) payment and you know exactly what your HR software costs — no more having to account for 10+ different software subscriptions.

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If you’re ready to say goodbye to fragmented tools and the challenges that go with them, consolidation is the way forward. Here’s how to approach HR tool consolidation in 9 steps:

List out all the tools you use for every aspect of HR and connected services like payroll or benefits administration. Note down what they’re used for, whether you actively use them or not, and how much they cost. It’s easier to make a decision about what to keep, consolidate, or remove once you have a clear overview of the current situation.

Finalise which tools or features are essential to consolidate, and which you can leave until further down the process. You’ll need an HRIS or HRMS to act as your central hub for employee docs and data, but after that you can decide whether to focus on employee engagement, recruiting and hiring, compensation management, or another area that aligns with your overall goal. 

There are plenty of options when it comes to HRIS or all-in-one HR systems, but if you want your consolidation exercise to work you need to choose the best-fit software. Reflect on your main priority, get clear on the features your ideal system must have, and then look for software vendors that can meet your needs.

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Once you’ve chosen your new HR system, the next step is to get your data ready for migration. Complete a full data audit: understand where your data is stored and how to access it. Bring all your HR data together in one place, then clean it thoroughly — remove duplications, fix errors, and standardise field titles and categories. The cleaner your data is before you import it, the smoother the process will be.

A great software vendor will have an expert prepare an implementation plan for you, and it’s crucial that you work together to prepare the system for testing and launch. Follow any steps to prepare and import data, and ask for help if you need it. This is also the step where your implementation partner will configure any workflow setups and customisation that you’ve requested. 

Run a test project or phase before you go live with the system across the whole organisation. Invite a small group of users to be part of a trial — ask them to use the system to complete tasks as they normally would, and give you feedback on the process, any errors they’ve found, or any workflows that don’t trigger as they should. Use this feedback to further customise the system ahead of your planned launch date. 

Don’t swap from your existing setup to the new one straight away. Instead, run both systems parallel for a few weeks so you can identify issues and fix them in real-time. This step serves as a useful onboarding and familiarisation period for employees and managers, and gives you another opportunity to make sure the system is set up correctly to meet your needs.

Once you’re happy that your new consolidated HR system works as it should, close down your existing tools. End your contracts with previous vendors, and remove any integrations that you no longer use. Check with each vendor that your data will be retained or deleted in line with UK data security laws, and apply the same rules to any other data you’ve kept as part of the process.

Consolidation isn’t a one-time process for most teams. Even after your initial project, you might find other apps, tools, or features that you can merge into your chosen HR platform — or ways to enhance it with integrations. Review your setup at regular intervals to check for any potential issues, opportunities to improve, or feedback from users.

Switching systems or integrating more tools into one platform can feel like a big move, so it’s understandable that many HR teams have concerns about how it works or how their organisation will perceive it. 

Below are some of the main concerns that HR teams raise, along with how to reduce or remove the worries and reassure your team:

Bringing more of your HR operations together in one platform makes sense for most HR teams — especially if you’ve outgrown your current setup or find it hard to manage. 

Consider consolidating your HR tech stack if you: 

• Have 200+ employees 

• Spend too much time on manual admin, calculations, and processes

• Feel overwhelmed by the amount of tools you use on a weekly basis

• Want greater transparency over what you spend on HR software

• Want easy access to all your HR data and analytics in one place

Sometimes consolidation isn’t the right choice. If you’re happy with your existing setup and simply want to improve data flow, look for ways to integrate your fragmented tools with your current HRIS. If you need greater feature depth or want to use the best HR tools, consider a strong HRIS paired with integrations instead.

A consolidated HR system saves time, reduces overwhelm, and makes it easier to stay consistent and compliant with your data and HR processes. For mid-market teams with growing aspirations (and headcount), having everything in one place allows you to scale without interruption.

Personio’s features include: 

• Core HR for absence management, onboarding, employee docs, workflow automation, and people analytics

• Personio Assistant for AI responses, data insights, and more

• Modules to match your needs, like recruiting, performance & development, compensation management, and surveys

• Preliminary payroll and integrations with popular UK payroll software

• Employer of Record service (powered by Remote)

• Marketplace with 200+ integrations for HR, payroll, and IT tools

• Dedicated AI Transformation Hub to help you manage AI adoption across the workforce

Consolidate HR tools into one platform by identifying which software will act as your central hub first, then moving as many functions as possible to that system. A mid-market HR system should be able to handle core HR alongside recruiting, compensation management, performance management, and employee engagement, but you may need integrations to take care of payroll or complex HR analytics.

Start by consolidating any functions or processes that take up a disproportionate amount of time to manage — like time-off management or onboarding. Focus on ‘quick wins’ that can free up valuable time that you can invest into further strategy or consolidation efforts.

No, you can consolidate HR tools at your own pace. Start with the ones that are high priority, and look to move others into your new system when you can. Tools for recruiting, compensation management, or payroll can be integrated when you’re ready.

Consolidating HR and payroll software is an option, and one that’s useful for teams that are already looking to switch payroll providers. If you’re happy with your existing payroll software vendor, consider an HRIS that offers an integration with the tool you use instead.

The data migration process for most modern HR systems is simple, and involves importing a .csv file that you’ve prepared according to your vendor’s suggested fields. Some vendors will handle the data import for you, while others ask you to upload your own files and follow a guided migration process.

Personio integrates with a wide range of HR and payroll tools, so you can benefit from a strong foundation alongside other best-in-class software. Popular integrations include Xero, Sage 50, Workable, Culture Amp, Figures, Greenhouse, Zapier, and more.

Most teams complete Personio’s implementation process within 4-6 weeks, so you can be up and running with your consolidated HR system more quickly than with other providers. Your implementation specialist will provide support every step of the way.