HR Tech stack: What employers need to know

HR Tech stack: What employers need to know
Last Updated: October 31, 2022

What is an HR tech stack?

A human resource tech stack is a collection of digital tools that work together to support the HR business function. An HR tech stack's tools can handle traditional, transactional tasks (such as payroll and benefits administration), allowing HR professionals to focus on more strategic initiatives. These tools can also generate detailed reports that aid in decision-making related to larger company goals, such as increasing retention and employee engagement.


HR uses technology to recruit, engage, manage and develop employees effectively. In recent years, there has been an increase in dependence on technology within the HR discipline. According to a report by oracle, HR tech stacks are among the top ten priorities for most HR departments.


Nearly half (46%) say that having a strong HR tech stack is among the top three priorities of their HR departments, and 80% say it is among their top ten priorities.


It wasn't until recent years that businesses started optimizing HR responsibilities using the software. A lot of organizations still make use of paper and excel sheets.


Lately, HR has been prioritized a lot more. From application monitoring and onboarding to engagement tools and performance management software, tech in HR is rapidly developing.


Why you need an HR tech stack


While the initial systems of record were developed to assist HR executives in implementing processes, today's work systems are geared to assist employees and managers in managing themselves. Modern HR technology can even assist businesses in meeting their objectives.  

An HR Tech stack offers the following benefits:


1. Increased HR efficiency

HR process simplification may save your team a significant amount of time. An HR tech stack includes tools and techniques that increase your efficiency and that of the employees. 

Here are the core HR functions an HR tech stack can help you with:

  1. Workflow automation - Automation improves management, onboarding, training, and recruitment processes. HR managers now have the tools to concentrate on their business rather than data input or approval procedures.
  2. Payroll - Processing payroll can be very time-consuming. A platform that streamlines this process is crucial as it can help facilitate the growth of a business.
  3. Reporting and analytics - To retain visibility and guarantee employee performance, insights about working time, engagement, and teamwork are helpful.
  4. Organization management - Successful organizational management necessitates flexibility because work is increasingly organized around projects and teams rather than departments. HR systems may assist executives in managing their organizations by providing flexible architecture and responsive staff grouping.


2. Engage and retain people

Employee engagement has become increasingly complex due to the global talent pool and remote work. Engaging and retaining employees is harder than before, but an effective HR stack comprises tools that help with this:

  1. Performance management - Tracking and assessing your employees' performance is critical, but this may become a difficult chore with big distributed teams. Your HR software may construct performance assessments that occur on customized cycles, are based on employee data, and foster trust by providing actual career advancement chances.
  2. Onboarding - Through automated onboarding, your HR platform might start fostering community and increasing engagement.
  3. Surveys - Conducting surveys and gathering feedback more frequently will help HR staff identify concerns.
  4. Culture - HR solutions assist you in keeping employees engaged by using shout-outs and social features that promote relationships outside project teams.


3. Grow employees and expand the workforce

  1. Workforce planning - Providing your employees with a clear vision of how they can advance with your company begins with using an HRIS (Human resource information systems) to plan this succession. This helps build employee loyalty. Employees are likely to be more interested in staying at a company when they can see how they will grow with the company over time.
  2. Recruitment - Your platform communicates your values to the recruits. This will have a lasting impact on how they perceive your organization. Your platform should give you tools for welcoming people into your organization.
  3. Skills and development - Your HR platform may assist employees in developing by defining individualized objectives, assessing their abilities, and providing professional development programs targeted to their unique needs.


How do you build an HR tech stack?

Before deciding to commit to the tool, you must have a plan. The vast majority of software available in the HR space can distract you from making the right choices. You require a system for sifting through the numerous options and finally getting the right ones. Otherwise, you could end up with tools that give you more problems than they are worth.


Here is how you can approach this:

  • Identify your specific needs - First, identify what your team needs. While diving straight into new tools and software is tempting, you first need a clear understanding of the organization's needs. Examine the tools you use currently and try to spot some gaps and areas that may need improvement.
  • Determine your priorities - You may have found numerous areas for improvement after carefully looking at your present systems. Unless you have an endless budget, you will undoubtedly select where to put your resources and focus on that area.
  • Establish your budget - Before you even start looking at what's available on the market, you should know how much you are willing to spend. This will make the search a lot easier.
  • Ask the right questions

Have a list of questions that will help you compare and contrast your alternatives. Examples include:

  • How does this tool fit within the aims of my company?
  • Is this tool offering enough assistance to my team?
  • Is this tool compatible with the technologies we already have?
  • Does this tool fulfil the security standards of my team?


HR tech stack: The common software categories


The following is a list of common tools grouped by category.

HR tools for recruiting and hiring

1. Lever

Lever is a cloud-based talent acquisition software that significantly enhances recruitment and hiring processes. The powerful solution enables HR teams to discover, interview, and employ candidates from a single, convenient platform, cutting hiring time drastically.


2. TalentLyft

TalentLyft is an all-in-one recruitment software solution that integrates talent sourcing technology, a recruitment marketing platform, talent CRM, application tracking software (ATS), and sophisticated analytics.


3. Breezy

Breezy is a robust recruitment software created exclusively for SMBs. The cloud-based platform provides various features, including the job posting, resume processing, video interviews, and offer distribution. It readily interacts with other HR tools and systems.


HR Tools for onboarding

This program streamlines the process of welcoming and training new employees.


1. Sapling

Sapling can import your recruiting data and interact with other HR and IT platforms. Before their start date, you can expose new hires to your team, organization, and culture. New employees can update their profiles and complete all necessary paperwork and activities.


2. WorkBright

Workbright is a fast onboarding solution created exclusively for remote teams. Thanks to the automated onboarding procedure, new hires may complete all relevant documents from their computer or phone.


3. Enboarder

Enboarder is a versatile, user-friendly platform that can be used by both in-house and remote employees. It is completely customizable and can migrate personnel at all levels.


HR tools for payroll

Payroll software automates and controls employee payments while assuring consistency and adherence to tax and financial requirements.


1. Rippling

Rippling is an employee management software that integrates payroll and benefits into a single platform. Additionally, it serves as an all-encompassing HR platform for groups seeking a wide range of features. Everything is taken care of, including hiring and onboarding and automatic I-9 and W-2 compliance.


2. ADP

ADP provides global payroll processing. It allows for integration with other HR systems. It offers a range of features to help in HR, such as employee data syncing.


3. Gusto

Gusto provides payroll, benefits, and HR tools to small and midsize businesses. It integrates with various popular accounting software, including FreshBooks and QuickBooks Online, as well as time tracking software.

HR Tools for performance management and reviews

Performance management software facilitates the practice of conducting frequent performance evaluations by providing ideal methodologies and a picture of how people influence the firm.


1. Small improvements

Small Improvements is a feedback tool package. It offers 360-degree feedback and performance reviews. This helps organizations achieve their goals without micromanaging personnel.


2. Lattice

Lattice is a people management software that includes various functions such as reviews, objectives, feedback, and employee appreciation. Lattice makes it simple to provide constant feedback and regular check-ins.


3. Betterworks

Betterworks is a performance management and goal-setting program. It has a plethora of dashboard and administrator access customization possibilities. It provides feedback, coaching, and recognition techniques, as well as assisting your workers in identifying professional growth possibilities.


Human resources information systems (HRIS)

HRIS systems are a collection of technologies that store and manage employee data, HR regulations, and processes.


1. Bamboo HR

Bamboo HR is a complete human resources management system for small and medium-sized organizations. It centralizes all processes from hiring to onboarding, time-off requests to performance evaluations.


2. Namely

Namely is a consolidated people operations platform that serves a variety of key HR services like recruiting, onboarding, payroll, benefits, time and attendance, and compliance.


3. Sapling

Sapling is a people operations platform and HRIS application designed to handle onboarding, off-boarding, and everything. It is dispersed globally and focuses on bringing together distant teams.

Ngonidzashe Nzenze
Ngonidzashe Nzenze is a software engineer with three years of experience and a passion for building solutions from scratch. He has been part of the development team at The Human Capital Hub, where he worked on a Human Resources insights site using Django Rest Framework and React JS. Ngonidzashe has led projects such as the Time Utilization System, optimizing workforce management, and played a key role in developing the IPC consultants’ website and IPC Jobs portal. As the lead developer of Pay Genius, he created an online salary advisor system using Python and Django. Ngonidzashe has a proven track record of improving existing systems, enhancing the Talent Hunter and Performance Manager websites to make them significantly more effective. Additionally, he writes various articles for The Human Capital Hub.

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