Common Challenges of Building Multiple API Integrations
Building SaaS integrations doesn’t have to feel intimidating; but let’s face it, it usually does. Many factors—from complex APIs to poor documentation—can make it tough for product teams to scale integrations.
In this article, we'll cover common obstacles SaaS companies face while building multiple API integrations and how to overcome them.
But before we delve into that, let's first discuss what API integrations are and use an example to understand why they can be more complex than you think. (You can skip to the next section to jump quickly into the list of challenges.)
The complexity of multiple API integrations
APIs, or application programming interfaces, enable two applications to connect and seamlessly exchange data. APIs allow these systems to specify how requests are made and data is shared. The convenience of API integrations makes them a popular choice for SaaS developers.
However convenient, APIs are far from simple. Their complexity makes building and maintaining multiple API integrations challenging for engineering teams.
To understand this better, let's consider the HR and payroll integrations landscape.
The need for multiple integrations in HR
Today, an average HR tech stack has seven or more employment systems of record, including human resource information systems (HRIS), payroll software, benefits administration platforms, performance management tools, and so on.
The efficiency of HR processes depends on how effectively these tools communicate with each other. As a result, employers are increasingly prioritizing product integrations as a critical criterion before investing in any SaaS product to add to their HR tech stack.
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Therefore, if you are a developer, product manager, or owner of a SaaS tool in the employment tech space, your ability to remain competitive and close more deals depends on your ability to offer seamless integrations across multiple HR and payroll systems.
The difficulty of API integrations
As of 2023, the U.S. has nearly 6,000+ HR and payroll providers. Many of these providers do not have public APIs. And the ones that do have hundreds of variations in their APIs, data formats, documentation, and integration protocols.
Understanding different HRIS or payroll APIs and then planning, building, testing, and implementing dozens or hundreds of integrations can take months or even years and cost millions of dollars—not to mention the ongoing maintenance required for all the connections.
These complexities apply to API integrations across all software categories, not just HR. In the next section, we’lldiscuss in depth what makes scaling API integrations a challenge for SaaS builders.
Note: Meanwhile, if you are building multiple HRIS and payroll integrations, you should check out Finch's unified employment API. With Finch, you can unlock access to data from 200+ HR and payroll providers using just one integration. Learn more.
Common challenges of building and maintaining multiple API integrations
Building API integrations is a complicated endeavor for several reasons. The primary challenges developers face are:
🔗➡️ Building multiple API integrations can seem impossible. Our guide walks you through 6 common challenges and their most convenient solutions.