HR teams play a crucial role in driving an organization’s success by empowering its people. However, balancing daily administrative tasks with strategic responsibilities can sometimes distract from critical areas like managing the employee lifecycle, maintaining compliance, enhancing talent acquisition, and contributing to organizational goals.

Fortunately, HR technology (HR tech) offers a solution. With 83 percent of HR leaders saying technology helps them stay agile and prioritize strategic objectives, HR tech has become indispensable. Automating essential processes helps HR teams focus on initiatives that drive business growth and foster a positive workplace culture.

In this piece, we’ll explore the key benefits of HR technology, share practical steps to build an effective HR tech stack, and highlight the types of software that simplify and strengthen HR workflows.

What is HR tech?

HR tech (human resources technology) is a broad term that refers to the software and hardware technology used to automate essential HR functions. HR tech functions as co-pilot, helping HR professionals streamline time-consuming tasks, including: 

Why do HR leaders care about HR tech?

HR tech doesn’t just reduce paper clutter and admin work—it helps manage the entire people lifecycle. In companies with hundreds or even thousands of professionals, HR tech has become indispensable. With this managerial assistance, HR professionals can focus on improving recruitment practices, supporting managers, and boosting engagement, retention, and productivity.

HR tech benefits

HR tech can streamline and optimize human resource operations in several ways, leading to: 

Increased efficiency and accuracy

HR teams spend almost 60 percent of their time on administrative tasks such as generating HR reports, tracking time and attendance, and onboarding new people. HR technology automates routine tasks, improving efficiency by helping teams complete admin work in less time. It also helps reduce the risk of errors in payroll, benefits administration, data entry in employee files, and compliance reporting.

Easier compliance management

HR compliance involves conducting regular audits to review current practices, staying informed about law updates and adjusting policies, and establishing communication systems for team members to report noncompliance. 

HR tech can support compliance management with automatic payroll processing,  ensuring accurate tax deductions, and calculating correct pay using hours worked, deductions, and benefits. The software can also track changes in tax laws, support compliance with data security requirements, and promote equitable hiring by enforcing nondiscriminatory practices.

<<Access this free HR compliance checklist.>>

Improved data-driven decision-making

Rather than relying on assumptions and surface-level data, teams can use HR tech to analyze high volumes of data, uncover trends, and generate visual HR dashboards with actionable insights.

Using advanced analytical tools can help:

Stronger communication

HR technology improves communication by creating integrated, social-media-like networks where people can access company-wide announcements, employee directories, provide feedback, fill surveys on job satisfaction or managerial effectiveness, and stay up-to-date on important developments.

Open and accessible communication fosters a sense of value and inclusion, strengthening engagement and supporting a positive workplace culture. 

Better performance management processes

Aberdeen research reveals that organizations with exceptional talent management programs are 26 percent more likely to use performance management technology. These platforms provide a single platform for HR teams to set objectives and goals, organize performance reviews, monitor progress, and provide feedback. 

Team members can also access these tools, allowing them to share and receive feedback. 

<<Download and use these free performance management templates.>>

Enhanced learning and development 

Effective learning and development programs drive continuous growth, help retain top talent, and ensure the organization stays competitive. These programs can include in-person workshops, online training, and on-demand learning modules.

HR tech, such as a learning management system (LMS), helps organizations run learning programs at scale through features like custom course builders, personalized training, measurable performance insights, and content integrations. HR teams can schedule training, assign courses, send automated reminders, and track lesson completion.  

Advanced LMS systems even have generative AI functionality, which HR teams can use to generate insights on what development opportunities to offer their people based on their current skills.

Improved team member experience and company culture

HR tech helps create a more connected, engaging, and people-centric work environment. It provides remote and onsite professionals with tools to collaborate, build community, and stay aligned with company values. HR tech also removes the administrative burden from HR leaders, so they can direct attention to improving the employee experience, increasing engagement, and nurturing a healthy company culture.

With self-service portals, recognition programs, and AI-powered insights, HR tech enables organizations to personalize the team member experience, support career growth, and reinforce a culture of belonging.

How HR leaders can use their HR tech stack effectively

HR leaders can embrace new tech developments through adequate preparation. The following pointers can help HR maximize HR tech to drive success in the sink-or-swim work world: 

Clearly define your objectives

HR teams face unique challenges, from attracting top talent to maintaining compliance with changing laws. Take the time to define clear goals so you can find the right HR technology for your people. You may want to improve how people experience the workplace, help the company hire better talent, simplify day-to-day tasks, or all three. Whatever the goal, a clear objective points directly to the tools that will make the most significant difference.

For example, a startup looking to scale may need support streamlining its recruitment process. An applicant tracking system (ATS) can screen applicants and schedule interviews, freeing valuable time and streamlining the hiring process. 

Ensure executive buy-in

The success of new HR technology depends on the support of leaders and managers. Their buy-in influences budget allocation and encourages the entire organization to embrace the change. Demonstrate the potential ROI by showcasing how the technology will ease workloads, streamline processes, and enhance productivity.

When leadership supports the implementation, rollout is smoother, adoption rates improve, and the organization can fully realize the solution’s benefits.

Research and compare vendors

Successful HR technology adoption begins with exploring multiple software options and their capabilities. Core features your HR software can have include:

  • Onboarding 
  • Payroll management 
  • Time and attendance 
  • Performance management 
  • Analytics and reporting

Important functionalities beyond features to look out for include user-friendliness,  customizability, customer support, and security.  Don’t forget to look at costs: find out initial licensing costs, and implementation or customization costs to ensure they align with your budget. 

Compare vendors via software review sites like G2 and Capterra, read case studies on their websites, try demos or free trials, and tap into online HR communities for recommendations. 

Check integration capabilities

HR doesn’t exist in isolation. The most effective HR tech can easily integrate with other software you’re using, from payroll systems to ERPs to an ATS. For example, the finance team uses payroll data when preparing tax filings, and they can simply pull that data from your payroll software into their accounting software to ensure accurate calculations. Or, you can pull data on team members’ learning progress into your HRIS when building HR reports.

Deepen and refresh knowledge 

Comprehensive training and continuous upskilling ensure teams can fully leverage automation, analytics, and integrations to streamline processes and drive strategic impact. When HR professionals are confident and proficient with new technology, they can better guide managers and team members through adoption, troubleshoot issues, and encourage engagement.

 This proactive approach helps create a culture of digital fluency, making transitions smoother and reinforcing the value of HR tech across the organization.

Ensure your chosen tech can scale with you

Scalability refers to the ability of your tech stack to handle increasing HR function demands without requiring changes to its core functionality or slowing down in speed. Cloud-based solutions with built-in HR automations, global compliance support, and modular systems easily adjust to shifting business needs. These flexible tools allow HR teams to add or remove features without disrupting daily operations.

Scalable technology keeps workflows smooth and efficient, supporting growth without slowing progress.

Update tech-related policies

HR tech innovations change the way people work, so HR must routinely amend policies to keep them fair, consistent, and unbiased. For example, HR teams can regularly update policies concerning data privacy protocols, remote work tools, and the use of artificial intelligence to ensure they align with evolving technologies.

Develop robust data security measures

HR software stores a wide range of data, including personal details, salary and benefit information, and performance reviews. Team members’ records and information are sensitive information, so having robust data security measures is non-negotiable. 

Ensure your tech stack supports enterprise-wide security measures such as compliance with ISO 27001:2022, storing information in AWS data centers, network protection, and role-based access controls. Also, set up regular training on maintaining data safety for everyone using the HR software. 

Collaborate with IT

While IT manages the behind-the-scenes hardware and software related to recruiting, training, and collaborating, HR is center stage, supporting the people using this technology. HR and IT professionals can cooperate to overcome pitfalls and improve the employee experience.   

Improve user experience

A well-built tech stack simplifies everyday tasks for team members. Self-service tools give instant access to leave requests, learning and development programs, onboarding checklists, and performance reviews. Simple actions like updating personal details, checking payroll information, or downloading tax documents happen without waiting on HR support.

Quick access to these tools helps team members handle their needs faster and with less frustration, creating a smoother and more supportive work experience.

Offer comprehensive team member training

It takes time and effort for people to adjust to new software and adopt it into their workflow. Offer comprehensive training and support for team members and use change management strategies to minimize disruption to their current processes and drive faster adoption. 

When organizations prioritize transparency and open communication, team members feel more comfortable adapting to change, making informed decisions, and working together toward shared goals. This foundation enables greater agility, helping businesses respond quickly to evolving needs and opportunities.

Conduct regular audits and encourage continual improvement

Regular audits keep your HR tech stack aligned with the team’s evolving needs. Reviewing new features, scalability, and integration capabilities ensures the software continues to support daily operations and long-term goals. Consistent evaluations allow the technology to grow alongside the organization, driving ongoing improvements for both HR and the entire team.

Functions HR Tech Helps With

Types of HR tech companies

HR tech companies come in all shapes and sizes. Some software may focus on a single HR function, such as:

  • Payroll management: Provides a central dashboard for HR teams to update payroll data in real-time, administer employee benefits, and maintain flexible payroll cycles
  • Talent management: Allows HR professionals to attract, develop, and retain top talent, aligning team member’s abilities with the organization’s objectives.
  • Employee management: Offers an integrated tech system for HR people to manage the employee lifecycle, from recruitment to offboarding
  • Applicant tracking systems: Facilitates the entire recruitment process, from posting job ads to sending success/rejection emails to candidates
  • Learning management systems: Helps to create and assign online courses and training programs to team members
  • Performance management: Streamlines the performance management system, enabling HR teams to incorporate activity, goals, and achievements
  • Employee engagement: Helps HR teams improve engagement, retention, and productivity across the organization using surveys, recognitions, and rewards
  • Employee onboarding: Automates the onboarding process for new team members through self-service capabilities
  • Attendance management: Supports time and attendance tracking, providing a simple view of people’s work hours and enabling HR teams to get detailed time reports for payroll processing. 

Other HR tech systems, such as HR platforms, offer a one-stop shop for managing everything, from recruitment and onboarding to engagement and productivity. For example, general software like HRIS, HRMS, and HCMs offer comprehensive functionality that HR teams can use to handle entire core HR functions.

Popular HR tech conferences for this year

To stay up-to-date on the continuous advances in HR technology, you can attend HR conferences. These provide a forum for HR professionals to network, sharpen skills and knowledge, and discover new workplace trends. Here are major HR tech conferences to check out:

  • Transform. This symposium focuses on integrating tech innovation and entrepreneurship through a people-driven approach
  • SHRM’s annual conference. SHRM’s all-encompassing educational networking experience is the conference to attend if you can only make it to one
  • SHRM Inclusion. This conference emphasizes DEI&B principles to help HR leaders support a more inclusive workforce
  • From Day One. This forum offers online and in-person events to help you build stronger relationships with your people by establishing your company values
  • Inspire HR. This conference is the place to network, hone your HR skills, and get inspired
  • Workhuman® Live. This festival teaches practical tips for HR professionals to overcome burnout, make informed decisions, resolve workplace conflict, and build a great culture 
  • HR Technology Conference & Exposition. This tech expo focuses on the latest HR innovations
  • Unleash America. The Unleash America conference hosts global HR leaders who speak on HR and innovation in organizations

Upcoming HR tech trends to know 

Every year there are new tech trends that surface and gain traction. Let’s take a look at three current and common trends:

  • Artificial intelligence. AI is transforming how HR professionals approach their work and the tasks they prioritize. HR teams can use AI and machine learning to automate everyday workflows, personalize the employee experience, and make data-driven decisions with greater accuracy and speed.
  • Increased concern over cybersecurity. As of 2023, about 6 billion malware attacks were detected worldwide. With increasing attacks, protecting people’s sensitive information has increasingly become a priority for HR teams. They’re implementing stringent security measures to combat data breaches and targeted ransomware attacks. 
  • Self-service technology. People like easy access to their paperwork, whether it’s a pay stub, tax form, or healthcare document. When you train professionals to use self-services, they won’t need to contact HR for help. They’ll be able to take care of the admin work themselves. 
  • Remote work options. Technology has catalyzed a shift towards remote work. While remote work is still evolving, Zoom, various types of HRIS, and collaborative platforms such as Slack have played a significant role in allowing people to work and take a day or more to work from the comfort of home. 
  • Work-life balance. Wellbeing has become a priority for many professionals. Working from home can improve work-life balance, but it also poses new challenges. HR tech allows HR, managers, and team members to connect, build relationships, and address mental health issues that may arise from workplace stress or remote working conditions.
  • Diversity, equity,  inclusion, & belonging. Building an equitable workforce with professionals from diverse backgrounds is an HR trend that’s now common practice as it ensures everyone in an organization has access to the same opportunities. 
  • Global hiring. As remote work becomes more commonplace, many companies are hiring people internationally to save costs and access a bigger talent pool. Global hiring comes with a variety of compliance headaches, but there are HR tech companies and Employer of Record (EOR) service providers that use software to make hiring around the world as simple as hiring locally.
  • Skills-based organizations. According to the Corporate Finance Institute (CFI), companies are prioritizing a person’s skillset and capabilities over requirements like educational background when making hiring decisions. 
  • Coaching and mentorship platforms. HR teams are implementing coaching and mentoring strategies more, using dedicated platforms to facilitate structured mentoring relationships between team members, particularly as a strategy to upskill people and improve retention. 
  • Internal talent marketplaces. This is a growing HR trend where HR teams use an AI-powered internal job board to match team members with available gigs, projects, or full-time roles in the organization using their skills and interests.

Why should HR tech be part of modern HR strategy?

Technology is more and more essential in the workplace, helping with anything from drafting documents to analyzing data. Just like every other department, HR requires tech to help optimize its work and bring value to the company. While tech involves a learning curve and an integration process, it enables HR professionals to build a strategy that promotes the company’s mission, values, and business goals. 

HR tech FAQs

What types of HR tech solutions are available for businesses of different sizes?

HR tech solutions for businesses of different sizes include:

The right solution(s) depends on your organization’s needs and size.

How does implementing HR tech improve the hiring and onboarding process?

HR tech enables people to eliminate much of the manual labor present in the traditional hiring and onboarding process. HR teams can automate hiring workflows, use AI to sift through applications, and send emails to candidates. 

Digital onboarding platforms also encourage paperless onboarding, making it easier for team members to complete their onboarding online and navigate documentation using custom workflows. 

Recommended For Further Reading

Is HR tech secure for storing employee information and sensitive data?

Yes, HR technology that is certified in industry-accepted general security and privacy frameworks such as SOC 2 Type 2 and ISO 27018:2019 is secure for storing sensitive data. This software typically stores your data in secure backup centers like AWS data centers and provides: 

  • A dedicated security team
  • Network protection through network intelligence technologies
  • Security incidence event management (SIEM)
  • Intrusion detection and prevention 
  • 24/7 security incidence response

These security measures will protect your organization from data breaches and unauthorized access. 

What are the key factors to consider when choosing an HR tech platform?

When choosing an HR tech platform, the first thing to consider is your HR needs and the objective you want to achieve. This helps you determine the features you’ll look for in the software. Also, consider the software pricing and compare its cost against the ability of the software to scale with your organization, providing customizable, flexible, and easy-to-use functionality.