Finding Strategic Success by Modernizing K-12 Finance and HR Software

Disruptions forced change throughout every aspect of K-12 education in recent years. While keeping students learning through health and safety precautions like building closures was a primary focus, many schools and districts also found it nearly impossible to keep day-to-day operations going. Even as they found a way through every challenge, there’s a real sentiment among educators and leaders that it’s time to move K-12 finance and HR operations forward. For many, these exposed vulnerabilities combined with federal funding now available are catalyzing change. 

Three phases of ESSER funds released by Congress give schools and districts the chance to act now and realize the benefits for years to come. Modernizing finance and HR technology can help streamline operations, improve efficiency, and provide actionable data insights for all decision makers. The first phase became available in the early days of the pandemic, while the second and third phases were passed later. The largest of these was ESSER III, passed in March of 2021. However, of the $122 billion released to schools, only about 15% was spent as of October of 2022. That leaves billions of dollars on the table that schools have until September of 2024 to spend. The clock is ticking, but there’s still plenty of time to make a profound impact on education to help better support students today and into the next generation. 

PowerSchool partnered with Hanover Research to learn about school and district investment trends in K-12 finance and HR software. 98% of respondents said they intend to increase or maintain their current level of investment in modernizing their ERP system over the next two to three years. A third of those planning increased investment said they plan to increase it by more than 50%. We think this reveals a real intention by schools and districts to direct a sizeable portion of remaining ESSER funds toward Finance and HR System (ERP) modernization. Comparing this research with the strategic focus areas outlined in our Education Focus Report, it’s clear to see why. 

Bringing K-12 Finance and HR Together with a Modern ERP System

ERP systems help organizations manage resources and personnel with more efficiency and flexibility. Generally, this means combining finance and HR operations to simplify processes and helps teams work better together. It also means aggregating data across various sources within the organization for actionable, big-picture analytics. Plus, data housed within a single system is easier to secure. Rather than keeping it in separate systems and connecting it via third-party apps with varying levels of cybersecurity, a single system gives you more control over your data and its security. 

Businesses have relied on ERP systems for decades, but in K-12 education, finance and HR traditionally remain siloed. Modern systems built especially for the needs of schools and districts are changing that. Additionally, finance and HR professionals with business backgrounds often advocate for ERP adoption as crucial to achieving strategic goals.  

Specifically, an ERP system can help with organizational excellence and efficiency and building an exceptional workforce, strategic focus areas outlined in the PowerSchool Education Focus Report: Top District Priorities and Shifts in PK-12 Education.  

Integrating Data Systems to Simplify Workflows 

Finance and HR teams tend to rely on much of the same data. Housing it all together in a seamless system can save teams countless hours by eliminating duplicate data entries. Instead of teams separately entering a new employee’s information, for example, that information can automatically roll into the system input via the applicant tracking system. If changes to that information need to be made, they sync instantly to eliminate redundant edits and ensure accuracy across systems.  

Teams can also work better together with integrated technology. Rather than request and wait for data or files from another department, finance and HR staff members can quickly access what they need and keep processes moving. This can help ensure new hires get their first paycheck on time, for example. When it comes to planning and budgeting, integrated data provides easier access and reliable information for finance teams, school and district leadership, and community stakeholders.  

Why it matters:

Accessing Meaningful Data to Support Decision Making 

Seamless data lets analytics and visualizations show the whole picture, helping teams make more informed decisions. A modern ERP system can aggregate finance and HR. This means more information can be factored into every decision.

Simplifying decision–making further, a modern ERP system also gives teams role-based dashboards. Instead of a sea of data, this puts the most pertinent information right up front. For example, a hiring manager sees the most important data details for their day-to-day tasks while a superintendent might see higher-level district-wide information.  

Meaningful data is digestible. It lets teams use systems to their advantage rather than languishing in a state of too much data, and not enough time to decipher it. With technology that aggregates big-picture data and then presents it in understandable terms, it becomes the fuel that drives change and improvement toward strategic goals. Greater understanding helps teams set reliable benchmarks and accurately gauge improvements over time. It also helps make communicating progress to stakeholders easier. When improvement is needed, meaningful data and benchmarks give people the information they need to adjust and move forward rather than risk repeating unsuccessful strategies.  

Why it matters: 

Speeding Up Hiring and Onboarding to Support Staffing 

Faster hiring makes all the difference in a competitive labor market. By simplifying processes and minimizing manual tasks, a modern ERP system makes it easier for HR teams to post positions, make decisions, and extend offers faster than nearby districts. Even when matching the salaries of competing employers is a challenge, moving faster than them can ensure you put an offer in top candidates’ hands before them first—a priceless advantage. 

Integrated systems also minimize data entry during the onboarding phase, helping HR staff members meet their onboarding deadlines, ensuring new hires are prepared for their first day and minimizing time-sensitive payroll issues. In short, HR teams can put more of their time and energy into welcoming and supporting new hires instead of sweating due dates for forms. It’s one of the ways integrated, modern technology supports the human side of an organization. 

Why it matters:

Simplifying Administrative Processes to Support Educators 

The benefits of a modern ERP system go beyond finance and HR teams. A system that automatically syncs data, digitizes HR forms, and provides easy online contract signing and evaluations paperwork saves time for everyone. For teachers, that means more time to focus on their students instead of completing HR and payroll tasks.  

For new teachers, a simplified onboarding experience gives them more flexibility and lets them complete the process faster. They’ll have more time to prepare for their first day, connect with other educators on staff, and become a part of the school’s community.  

Additionally, an online system that enables self-service for HR tasks relieves the administrative burden on talent managers. When teachers and staff can easily edit their personal information, retrieve benefits information, or pull payroll statements, they get what they need faster. This frees them to do what brought them into the profession: teach their students. 

Why it matters: 

Modernize Your ERP System with PowerSchool 

Only PowerSchool offers an end-to-end finance and HR solution built specifically for the needs of K-12 education. With payroll and finance system products and talent products from PowerSchool, you get a single integrated ERP solution like those in the business world have relied on for decades. Since it’s from PowerSchool, it also integrates with the rest of your edtech ecosystem to deliver deeper data insights, simpler processes and workflows, and industry-leading data security. 

At the heart of a PowerSchool ERP solution is our K-12 finance software. 

PowerSchool eFinancePlus: 

Built for small to medium-sized schools and districts who need a complete finance solution. eFinancePlus integrates with PowerSchool talent products, as well as the rest of your PowerSchool edtech ecosystem. 

PowerSchool BusinessPlus: 

For larger districts, BusinessPlus delivers a modern ERP solution that’s flexible, secure, and reliable to meet changing needs.  

PowerSchool Atrieve: 

Canadian school boards can build their modern ERP system with Atrieve, our finance and payroll solution built for customers in Canada.