Building a Successful HR Tech Stack
A strong human resources team is one that quickly evolves alongside its growing and evolving workforce. In addition to the shifts in demographics, trends, needs, and values, compensation and benefits have grown more mobile and adaptable, and regulatory complexity has increased. This ever-changing landscape requires human resources teams to use equally agile solutions to handle employee information, recruitment, retention, and more. Attracting quality talent and keeping your best employees, calls for an efficient and strong human resources tech stack.
A well-planned human resources tech stack can help you streamline activities into one comprehensive, user-friendly, and integrated process. But, there are a plethora of tools for HR professionals available today, and hundreds more are being released annually. Navigating the array of alternatives accessible to HR professionals can be intimidating.
What exactly is an HR Tech Stack?
HR management is seen as a strategic business department with responsibilities that include hiring, onboarding, training, succession planning, and more. An HR Tech Stack helps HR professionals to successfully accomplish these tasks, but what exactly is an HR Tech Stack?
Any set of integrated digital tools and software used to streamline, optimize, or otherwise support a company's HR capabilities is referred to as a Human Resources technology stack.
At its most basic, traditional operations, such as recruitment and hiring, can be systematized, and administrative activities, such as payroll and benefits, can be automated using an HR tech stack. Transactional tasks, such as payroll and benefits administration can also be handled by the tools in an HR tech stack, allowing HR professionals to focus on more strategic priorities. These tools can also generate detailed reports that aid in decision-making relating to larger organizational objectives, such as increasing staff retention and engagement.
How to Set Up an HR Tech Stack?
So, where do you start when it comes to putting together the best HR tech stack for your company? To begin, you must assess your company's size, which includes your employees, revenue, and current HR processes. It’s also important to have an awareness of HR technology available on the market and the price range that best matches your needs and budget. Since no company is the same, HR tech stacks should not be built in exactly the same way. There is no hard formula to follow, but there are a couple of exercises that can help you to map out the best path forward.
First, you need to ask yourself: What does my team need?
What to Address with an HR tech Stack?
To start a human resources tech stack, we recommend focusing on three core HR areas: administration, talent management, and workforce management.
Traditional HR back-office activities are the administrative functions of HR. Softwares that help with HR administration can include:
Attracting, hiring, and retaining great hires are all part of talent management. In other words, developing and sustaining a competitive workforce.
Workforce management focuses on allocating resources to increase an organization's productivity. While workforce management varies with every company, it usually entails the use of data analysis for scheduling, budgeting, or forecasting.
It is important to remember that the solutions of your HR tech stack can integrate with one another via built-in integrations, third-party platforms, or an open application programming interface (API). Keep compatibility in mind when choosing solutions, since tool integration can produce considerable benefits.
HR data such as social security numbers and other information such as salary, health insurance, and retirement plans must be protected from falling into the wrong hands. In building your tech stack, be sure to collaborate closely with internal IT specialists, IT services providers, or cloud HR software suppliers to guarantee that your employee information is protected from external breaches.
As the competition and responsibility of hiring, recruiting, maintaining, and developing employees grow, companies are turning to more advanced HR tech stacks to help them stay competitive. So, take a look at the HR tech stack you are developing, or have in place, how can you better manage and automate your processes, and connect with your employees in ways that matter?