How HR Platform Integrations Work (And How to Choose the Right One)

Understanding how HR software integrations actually work and what HR terms mean can make a big difference in helping you to choose the right one. With acronyms like API, HRIS and iPaaS floating around, it’s easy to get confused. This is where our guide comes in.

We’re going to walk you through how HR software integrations work with your HRIS and explain terms like APIs, native connectors, and middleware. Having connected systems, aided by various software integrations, can make a huge difference to your operations. Integrated systems can aid in many areas, including payroll, finance and recruitment, saving departments time and resources that can be better used elsewhere.

Learn how HR platform integrations work, the pros and cons of different software integrations and ultimately, discover which model would be best for your needs.

The 4 integration models you need to know

We’ve broken down the four key models that you need to know. Each has its own benefits and drawbacks. Take time to consider each one and how they can help your business.

Native pre-built integrations

Native built-in integrations are exactly how they sound: pre-existing tools already directly built into the software by the software vendor.

Data can flow more securely and automatically, streamlining payroll, tax filing, wage compliance, and more.

Consider it like buying a compatible charger vs. building your own electronics: you can access the tools you need immediately and tailor it to your needs, instead of having to build one from scratch.

You can typically find native pre-built integrations between major enterprise HR platforms. While it does have a fast launch, it is limited in customization. This might be a good option if you’re just getting started and want a “plug-and-play” option with minimal IT costs and resources.

API based custom integration

This is where the vendor writes custom code to connect two systems, such as integrating your HRIS with a niche benefits provider. You can create custom software that automatically transfers employee data, such as eligibility for certain benefits.

Think of this model like building a house. You can build exactly what you need, but you're responsible for maintenance. You’ll need an IT department or an integration specialist to maintain it. This model gives you maximum flexibility, but is the highest maintenance burden.

iPaaS/Middleware platform

iPaaS, or Integration Platform as a Service, is a third-party, cloud-based platform that acts as a translator between systems. For example, using Zapier to connect your HRIS to Slack for onboarding notifications.

This type of platform eliminates the need for custom coding; instead, it offers pre-built connectors. Consider it a universal adapter—one tool that connects to many systems.

As it is a pre-built tool, there is less strain on IT departments and workload. However, it does come with monthly or yearly costs, so vendors need to lock in for a set period, and there is limited real-time sync.

File-based exchange (CSV/SFTP)

A file-based exchange eliminates the need for live software. Instead, you can share data by dropping files, such as spreadsheets, into a designated folder rather than connecting directly to the live software.

Data is pulled into a structured CSV (Comma-Separated Values) file, and SFTP (Secure File Transfer Protocol) is the encrypted, secure method used to transfer those files. Think of this like using a secure drop box and courier. You can complete the collection form. Then SFTP is a secure method for transporting the item. The SFTP folder is the secure box where the item is stored.

This model is commonly used in legacy systems for sharing data with older enterprise applications. It’s also a good option for those with strict compliance requirements, such as the healthcare and finance industries.

While this model is one of the simplest to set up, it can have slow data freshness, leading to some information becoming stale or outdated. There is also a manual oversight risk to consider. Relying on humans to verify and monitor processes does leave room for human error.

Comparing HR software integration models

What is speed to launch?

Speed to launch is the time it takes to implement new software or features.

For example:

• ATS integrates with your HRIS in one day, with no IT ticket required.
• APIs can take months to develop due to their fully customizable nature and are highly dependent on IT teams to maintain them.
• iPaaS takes days, sometimes weeks, to implement, but once established, it doesn’t rely on IT teams.
• File exchange takes only hours to roll out and relies little on IT; however, its data freshness is very delayed.

Things to consider with speed to launch include the faster time-to-value and quicker ROI justification to finance.

What is maintenance burden?

Maintenance burden refers to ongoing costs, IT resources and other efforts required to maintain operational efficiency.

For example:

• For API model, every platform update, API deprecation, or new data field requires code changes.
• iPaaS model is usually handled by the vendor but may need to adjust mapping if schemas change.
• File exchange may require IT maintenance to fix file-transfer crashes, and vendors may need to update policies and manage GDPR requests.

Considering the maintenance burden matters because of budget planning, IT hiring decisions and support costs. Knowing what maintenance each model will require can help ensure the necessary measures are in place to keep processes and systems running smoothly.

What is data freshness?

Data freshness refers to how up to date the information is. It measures the gap between when the event happens and when information becomes available in your systems.

For example:

• For native and API, it has real-time sync: This means you can hire an employee in HRIS, and they will appear in your benefits platform instantly.
• iPaaS provides near-real-time sync, enabling continuous updates that help eliminate data silos.
• File exchange has a daily or weekly sync at best: This is the worst model for time-sensitive processes like payroll.

What is IT dependency?

IT dependency is how much the systems will rely on support from IT. From setting it up, rolling it out and maintaining it.

For example:

• ATS is integrated with your HRIS and requires no IT support.
• API is custom made and maintained by the vendor’s IT department, so it’s very dependent on IT teams to maintain it.
• iPaaS takes days, sometimes weeks, to implement, but once established, it doesn’t rely on IT teams.
• File exchange takes only hours to roll out and relies little on IT; however, its data freshness is very delayed.