ITUMELENG MOGAKI on how disconnected HR systems create data gaps, weaken decision-making and increase risk across recruitment, payroll and workforce management.
In most organisations, HR systems are not a single ecosystem; they are a collection of disconnected tools that only appear unified on dashboards.
Recruitment platforms capture candidates, human capital management (HCM) systems manage employee records, and payroll engines handle compensation. However, between each stage, data is re-entered, rechecked, and often reinterpreted, creating gaps that compound as employees move through the organisation.
Sandra Crous, Managing Director of Deel Local Payroll, says the biggest disconnect sits at the handover between recruitment and onboarding.
“Candidate data is often manually transferred across multiple systems that were never designed to communicate, leading to duplicated records and reduced data accuracy.”
She explains that payroll and HCM systems frequently fail to synchronise real-time changes, such as promotions or banking updates, creating compliance and operational risks.
According to Crous, fragmented HR data also leads to poor decision-making, as leadership teams rely on incomplete workforce insights while payroll remains one of the highest organisational costs.
On the question of legacy versus modern systems, Crous says legacy platforms remain deeply embedded in enterprise environments, particularly in South Africa.
“These systems were built for slower, localised workforce models and struggle to support modern, multi-jurisdictional employment structures. The result is a patchwork ecosystem that requires constant maintenance to remain functional.”
Janine Palm, Social Executive at Attacq, says fragmented HR data also undermines decision-making by distorting key workforce metrics such as headcount, turnover and labour costs.
On system architecture, Palm explains that legacy tools provide stability, while newer platforms introduce improved user experience and integration capabilities.
“However, when poorly implemented, combining the two can increase fragmentation rather than reduce it. That system fit must be aligned with organisational complexity, with careful attention to integration between legacy and modern tools.”
Sasha Knott, CEO of Job Crystal, argues that fragmentation begins in recruitment itself, where multiple specialised tools are used for sourcing, assessments and background checks before data is passed into HR and payroll systems.
“This creates incomplete employee records, especially when candidates drop out mid-process. The biggest risk is loss of data continuity, where no single system holds the ‘truth’ about an employee lifecycle, increasing compliance exposure and reducing organisational visibility into talent pipelines.”
Knott suggests these practical steps to simplify and future-proof HR technology stacks:
- Map all systems that store or process candidate and employee data, including spreadsheets, to identify duplication.
- Define a single “golden record” system as the source of truth and integrate all other tools with it.
- Consolidate overlapping recruitment tools into one platform that covers sourcing, assessments and background checks, and connects to payroll.
- Use AI selectively in high-value areas like sourcing and screening, ensuring it is fully integrated to prevent new data silos.
Source: Business Day, written by Itumeleng Mogaki