Why HR systems fail at policy management
- Dan Hawtrey
HR software and solutions such as BrightHR and BambooHR pack in many capabilities that meet a variety of use cases. Understandably HR teams capitalise on many of these features to make the HR system the one source of truth for employee records and data, as well as HR policies.
Initially this might seem a convenient and cost-effective solution for managing policies. However, as business grow and compliance needs change and become more complex with regulators and ISO standards in the mix, using a system such as BreatheHR for policy management becomes increasingly unrealistic.
In this article we’re going to explore why HR systems aren’t really cut out for policy management beyond the very basic. We’ll look some of the gaps which can ultimately lead to compliance issues, and why sometimes it may be necessary to introduce a dedicated policy management solution such as Xoralia.
Why Companies Start with HR Systems
Businesses invest in HR systems because they deliver critical capabilities such as storing employee data, dealing with leave requests, recording absence and more. Over the years competition in the sector has meant that many HR systems have expanded to incorporate additional HR-focused features, such as applicant tracking, payroll and a knowledgebase or policy management feature. Increasingly companies procure an HR system that is marketed as an all-in-one platform.
These HR systems really can make sense, particularly for smaller business. An all-in-one HR platform means it is easy to adopt these additional features, while it is also cost-effective as there is no need to procure a separate solution for the capabilities covered. So far, so good. However, a consistent story we hear from both customers and prospects is that in practice the features within an HR system around policy management short fall of what is needed. They simply do not cut the mustard, mainly because of a number of missing features.
Where HR Systems Fall Short for Policy Management
Most HR systems that house policies offer only static document storage – effectively a relatively basic document library. But actually, policies need active management through their lifecycle with a set process involving drafting, reviews by appropriate stakeholders, publishing, updates, and ultimately archiving. This process is important to manage to ensure policies are regularly updated and involve the right experts, otherwise they will go out of date or will lack credibility.
Unfortunately, it is very difficult to manage policies through their lifecycle properly without effective workflows, defined roles at each stage to support accountability, robust version controls and more, none of which appear in most HR systems. You need more than basic document storage.
A key compliance requirement is to demonstrate that policies are being read, understood, and accepted by employees. This is usually essential for businesses looking for ISO certification or to pass regulatory audits. The best way to achieve this is through employee attestation, a process where an employee digitally acknowledges that they have read and accept or understood a policy.
However, HR systems rarely track "who has read and signed" policies and lack in-built employee attestation features and the related reporting. In turn, this creates a compliance risk. Sometimes compliance or HR teams try to arrange attestation manually through spreadsheets and email – but this is extremely time-consuming, inefficient, and unlikely to impress the auditors.
Regulators, certification bodies, and other auditors require robust reporting around access to policies, attestations and more, as well as audit trails around the creation and updating of policies and any configurations to the system. However, many HR systems provide only surface-level reporting – for example telling you when a policy was uploaded into the system - and little more. This means there is usually not enough evidence to prove compliance during audits for standards such as ISO 27001 – and similarly no evidence trails for auditors.
Many smaller companies and their employees spend much of their working day in Microsoft 365 and Microsoft Teams. Most HR systems have either limited or no integration with Microsoft 365 meaning that HR platforms – and any policies that are stored within them – remain siloed.
Siloed policies are unlikely to be found through a Microsoft search, and they also cannot be easily integrated into daily workflows that might be delivered through Teams or Outlook. The result is that policies are harder to find, inconvenient to access, and more likely to be ignored.
Compliance Demands That HR Systems Can’t Meet
When you go through an audit or certification process then you need to demonstrate a comprehensive, robust, and well-adopted approach to policy management. Ad hoc, informal, manual, and half-hearted approaches simply won’t cut it. You also need to show good adoption of any system in place.
For example, for ISO 9001 or ISO 27001 auditors will expect proper version control and employee attestations in place. They are then also going to want to actually see good adoption of attestations. Organisations in regulated sectors such as financial services or healthcare where there are stringent compliance requirements are also going to want to demonstrate clear audit trails for policy updates and system changes. If you only have an HR system in place like BambooHR or BreatheHR then the policy management features are not going to be enough to satisfy the audit.
The Alternative: Dedicated Policy Management Software
When your HR system is no longer fit for purpose for policy management or supporting compliance, it may be the right time to look at a dedicated policy management solution that will store policies and deliver all the reporting you need to support compliance needs. Here it is advisable to try and find a solution that has been built from the ground-up to deliver policy management at scale, rather than where it is an add-on module to a wider suite of either HR or governance tools and less fully featured.
Must-have policy management features to look for
When looking for a dedicated policy management solution here are some of the critical features to look for:
Why Companies Choose Xoralia
More customers are turning to Xoralia as their policy management solution of choice. There are several ways that Xoralia differentiates itself from other dedicated policy management software solutions:
Quick Comparison: HR Systems vs Policy Management Software
| | HR Systems (e.g. BrightHR, BreatheHR) | Xoralia Policy Management solution |
|---|---|---|
| Document storage | Built-in but still basic | Full, flexible document library |
| Targeted views for different roles | Limited | Targeted views of policies for different roles |
| Policy lifecycle management | Limited | Full policy lifecycle management features with flexible workflows and version control |
| Employee attestations | Rare or missing | Built-in acknowledgements, advanced reporting, and additional custom quizzes |
| Audit trails | Minimal | Detailed reports to meet compliance needs |
| Microsoft 365 integration | Weak | Deep SharePoint and Microsoft Teams integration |
| Compliance readiness | Not designed for ISO/FCA or advanced compliance | Audit-ready |
| Flexible Microsoft 365 web parts | Not included | Included |
FAQs
Can HR systems such as BrightHR and BreatheHR manage compliance policies?
Many HR systems can store policies, but they don’t provide attestations, version control, or audit trails. For compliance needs, dedicated policy software with more advanced features will be required.
What's the difference between HR software and policy management software?
HR software focuses on employee data and the administration of core HR processes, but policy management capabilities are basic. Dedicated policy management software tracks the entire lifecycle of the policy and meets compliance requirements.
When should a company move beyond HR systems for policies?
Typically when headcount passes over 100, certifications like ISO 27001 are required, when it starts to operate in multiple jurisdictions, or when it is in a regulated sector.
Should policy management software integrate with Microsoft 365?
It helps ensure policies are more easily accessed and adopted, integrated into daily workflows, and can also be targeted to Microsoft 365 groups and through Entra ID profiles.
What are the risks of using HR systems for policy management?
You may lack the capabilities to keep policies up to date, support compliance and effectively disseminate policies to employees at the time of need.
Managing policies? Don’t let HR systems hold you back
If your business is growing or you face compliance challenges, you need to take policy management seriously. You cannot rely on your HR system for policy management. Your HR solution will be great for core HR processes, but you need a dedicated policy management software like Xoralia to ensure you stay audit-ready, reduce risk, and keep employees engaged with policies inside Microsoft 365.
Try Xoralia via AppSource free trial or book a demo.
The story behind Xoralia
Xoralia was built by the team at Content Formula, an intranet and digital workplace consultancy that has built SharePoint intranets for some of the world’s most famous companies. Now, most companies want their policies and procedures on the intranet but they don’t just want to store them there, they also want tools to help better manage them. Over the years we came across just about every single requirement for a policy management system. As this article above explains, there are gaps in SharePoint and so we never built what in our mind was the perfect policy management system.
However, one of our clients challenged us to build something for them that filled all the gaps but still used SharePoint at the back end. We had a great relationship with them and agreed to share the budget to do this, provided we could then market the solution to others. That was in 2019. We’re now on version 3 of Xoralia and the product has grown and evolved a lot.
3 benefits you can expect from Xoralia
Make it easy to find policies
Centralised policy library with powerful search and filtering
Reduce administrative burden
Automations and notifications so that all policy tasks are carried out on time
Demonstrate compliance and best practice
Sophisticated tracking and dashboards to drive and measure compliance.
And lots more!
What our clients say
A great time saver and tool for document management
We have found Xoralia to be very beneficial to us as it has allowed us to focus on other area’s as Xoralia will take care of who has read the documents and notify them if they have not. A great time saver and tool for document management all together.
Tim Galer
IT Coordinator
Hughes
Ideal partner for our regulated environment
LifeArc operates in a strictly regulated sector where compliance and information security are critical. It is essential that LifeArc’s workforce have easy and effortless access to the latest up-to-date policies and procedures, which is the structure Xoralia gave us.
Adam Lythgoe
IT Manager
LifeArc
How to get started with Xoralia
Step 1: Explore or request a demo
Start a free trial for instant, hands-on access, or fill out our form to book a personalised demo at a time that suits you.
Step 2: Get a price proposal
If Xoralia looks right for your organisation, ask us for a tailored quote. We’ll outline any options and packages to fit your needs.
Step 3: Install and launch
Set up Xoralia in your environment with our support. We’ll provide onboarding, training, and full assistance to get your team up and running quickly.
Here's what you'll get
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Central policy library
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Search and filter tools
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Mandatory read policies with attestations
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Quizzes
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Notifications and alerts
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Employee dashboard
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Line manager dashboard
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Works on mobile, in Teams and SharePoint
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New policy creation workflows
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Policy update workflows
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Review and approval gates
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Policy version history
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Compliance dashboard
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Audit trail
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Full reporting
And last but not least:
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Professional implementation service and support
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Evergreen software – frequent updates and improvements
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Comes with our "it just works" support warranty – we’ll fix any bugs, often before you even notice
Ready to get started?
Connect with us to streamline your policy management and ensure effortless compliance.
Uniting excellence in integration and features for seamless policy management
As the newly appointed IT Manager at our company, I was tasked with implementing the Xoralia policy management tool, and the experience has been nothing short of impressive.
Rian Stuart
IT Manager
TwinStream
