Evaluating your HR tech stack

December 30, 2022 | 5 Mins David Daly

Over the past two decades there has been a huge increase in the production and innovation around human resources technology stacks. These are hr technology software applications designed to improve internal processes (such as onboarding and employee engagement) within HR departments while also introducing some innovation around external processes such as recruitment.

Like most forms of technology innovation, the quantity and quality of tech stacks available to multinational companies around the world today vary significantly. HR directors, leaders and senior professionals are obviously interested in specific software that will reduce any administration complexity they are facing, while also enabling them to engage and communicate with a globally dispersed workforce in an innovative and fresh way.

In this article, we are going to take a look at some of the things HR teams can do when it comes to evaluating your current human resources technology stacks to see if they remain fit for purpose and align well with the future of work.

Do they meet your ‘must haves’ list?

One way to evaluate your technology stacks and digital applications is to create a list around your must have expectations from hr tools in human resources administration. This is your checklist containing the things you simply cannot do without for operational efficiency within the HR department.

A good place to start is with your human capital management software. This is a serious piece of technology for any human resources professional and global organizations will be thinking about the long term when it comes to any purchase or upgrade of a HCM system.

HCMs contain crucial and sensitive employee data and information and cover many of the basic functions of HR.  Payroll data, time and attendance, benefits administration along with other information like employee training and compliance all tend to be consolidated inside this crucial software. It is often the go to piece of technology for human resource professionals and hr teams going about their daily tasks.

It is very important to evaluate your HCM against your must have list. We are entering a new culture of work in a post pandemic world filled with remote hiring and hybrid work models. A lot has happened perhaps since the original purchase date of your Human Capital Management system-therefore an assessment is needed as to whether or not it is still fit for purpose and meets performance management requirements. it is also worth examining it against the strategic recruitment objectives of the company in the long term- is your current HCM the best it can be for what is coming down the road?

Also, it is a more digitally connected world than ever before so you will always need to evaluate your HCM in terms of integration capabilities. HR will always be connected with global payroll and the finance department so a good question to ask is does your HCM integrate seamlessly with these two departments? Does it support crucial two-way dataflows between these connected departments, or do you find that your payroll team tends to do a lot of manual duplication when transferring data from the HCM into payroll software? This is something that is not sustainable for the future of work and needs to be considered when evaluating your HCM.

What is on the roadmap?

While it is always a good idea to evaluate your HR tech stack every two years approximately, it is equally a good idea to keep a very close eye on the human resources road map and how it aligns to the overall strategic objectives of the wider business.

Essentially, this is a question of what is coming down the line and is your technology capabilities within the HR department are capable of handling future expectations. It is therefore a good idea that some hr professionals form strong relationships and communication flows with engineers and IT specialists within the company, especially anyone with a background or experience in digital transformation.

Conversations around what is out there in the market, especially when it comes to innovative new digital platforms or technology stacks, can be very useful to have and stay current on. Having a member of the HR team who has the capacity to dedicate some of their time towards researching technology innovations in the HR tech space, could be really valuable in the long term. This person could take a look at what is out there in the market and offer opinions and suggestions around which technology best aligns with the roadmap for HR.

A lot of digital platforms and technology stacks today allow for a free trial period, and it is really not difficult to get a platform demonstration from multiple vendors out there in the market offering HR technology services. Researching and talking to vendors about what is coming down the line in the HR tec space can help provide an insight into the specific forms of digital innovation you might need for the things that are on your road map.

Things to focus on

Below are a few considerations hr leaders and relevant stakeholders could take on board when evaluating your current human resources technology stack:

CRM: Is your CRM modern, innovative, flexible and adaptable? What year was it purchased? When was the most recent software upgrade? How does it compare to competitor offerings in the market? Does it have capacity to scale and handle any future growth plans within your organization?  Does it have strong integration capabilities with other software in the business?

Internal mobility tools: Do you have strong basic knowledge of who your global team is, where they are located and what bank of skillsets they have? Can you produce and collate data on a globally dispersed workforce quickly and effectively if asked to do so by the leadership team? Do you have hr analytics and hr information on performance reviews, new hires and talent acquisition initiatives?

Career site: This one tends to get overlooked as people don’t really view it has a technology tool, but the reality is, it forms a major part of your recruitment process so it makes sense for it to be the best it can be. Does it authentically represent what your organization and company culture is, and does it communicate with prospective candidates in a meaningful and effective way? The site really needs to attract the kind of people that are culturally appropriate for your business- the right fit with your values and objectives.

Talent Community: Do you have a specific location within your technology stack or website for interested and engaged candidates to learn information about you and leave information about themselves? It is a global war for talent and the more you can do to attract the right level of talent directly to you, the better. An interesting and engaging talent community forum where prospective candidates can learn about your business and tell you something about them in a unique way can be valuable.

Sourcing tools: Do you have dashboard analytics that can offer compelling insights into hr function metrics like source of candidates, application tracking system info and job board performance. This is the information age, and the more data and reporting/analytics HR professionals have at the touch of a button, the more proactive they can be in the war for talent. Real time data feeds, performance analytics and forecasting metrics are the kind of sourcing tools that can make the difference.



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