How To Build The Ultimate HR Tech Stack

With more organizations pivoting towards remote work and adopting more strategic roles, HR departments have taken the lead in navigating this new landscape of work. As the conductor orchestrating this complex symphony of work, HR is at the forefront of juggling a highly strategic and administrative task load that once was manual. But wouldn’t it be nice to let technology handle the humdrum while you focus on the bigger picture?

Enter the world of HR tech stacks. This software stack is the secret weapon that HR teams employ to automate tasks and manage people efficiently. It’s like the shiny toolkit of a superhero, except it’s digital and does not include a cape (although we think it should!).

Weaving together tools and software to create the perfect HR tech stack can indeed make HR professionals feel invincible. So without further ado, let’s dive into the world of workforce automation through HR tech stacks and see how you can build one to transform your business for the better.

What is an HR tech stack?

Before we dive into the exciting world of HR tech stacks, let’s unravel the mystery behind the term. In essence, an HR tech stack is an ensemble of digital tools HR teams use to handle their responsibilities seamlessly. These tools take care of mundane tasks like payroll, absence management, and performance evaluations, allowing HR to focus on strategic elements. It’s like having a personal assistant who never sleeps, doesn’t need coffee breaks, and can multitask like a pro.

However, one must remember that selecting the right tools for your HR tech stack isn’t about shopping for the flashiest software. 

It’s akin to putting together an award-winning ensemble cast for your blockbuster. Each tool must play its part perfectly, complimenting the others, and working in harmony. It requires careful consideration of your company’s size, unique processes, and the diverse range of HR tech available.

According to the HR Research Institute, while HR tech stacks have been prioritized by many, only a quarter of interviewees considered their stack above average. It’s clear that there’s plenty of room for an upgrade. After all, who wants to be just average when you can be extraordinary?

Why you should have an HR tech stack

Now, you might be wondering, what’s the big deal about having a robust HR tech stack? 

Well, imagine a car with a powerful engine, efficient fuel consumption, comfortable interiors, and a state-of-the-art entertainment system. An excellent HR tech stack is just like that car. It boosts your HR department’s efficiency, offers real-time data, facilitates better communication, and greatly enhances the overall employee experience. Quite the package deal, isn’t it?

Now, the journey to assembling the perfect HR tech stack is exciting but demands a roadmap. Here are a few vital considerations to bear in mind.

Company Culture

Company culture represents the unique characteristics and ethos of your organization. Just as an outfit tailored to your body enhances your appearance, the tech tools you deploy should reflect your organizational culture. If there’s a mismatch, it could result in a lack of engagement from your employees. The tools you choose should align with, and reinforce, your company culture, thus promoting engagement and productivity.

Integrations

The effectiveness of your tech stack relies heavily on how well the individual tools integrate with each other. 

Just like a high-performing team, your tools should function cohesively, streamlining processes and enhancing the overall operational efficiency for HR and employees alike. The goal should be seamless integration, enabling a unified and efficient HR ecosystem.

Accessibility

In a world where remote work is increasingly prevalent, the accessibility of your tech stack is of paramount importance. It should cater to all employees, irrespective of their geographical location. Employee feedback should also play a crucial role in shaping your software choices, ensuring that everyone’s needs are met, regardless of their work environment.

Adaptability 

Long-term planning is crucial when assembling your tech stack. 

Consider whether your chosen tools will continue to meet your needs several years from now. Flexibility and scalability are key attributes to look for in software platforms to prevent constraints in your future growth and adaptation.

What to look for in your HR tech stack

However, the selection of appropriate tools is only part of the journey. These tools need to integrate efficiently, much like the harmonious cooperation between different instruments in an orchestra. Efficient software integration helps streamline HR processes and save valuable time.

Built-in Integration

Built-in integrations are the intrinsic connections between your tools. With them, no additional effort is required for setup, removing the need for specialized technical expertise. This allows for a smoother operation, akin to a set of interlocking gears in a machine.

Third-party Platform

Third-party platforms act as mediators facilitating communication and interaction between your tools. They help bridge gaps and automate processes between different applications. Platforms such as Zapier or Tray.io, for example, can streamline the integration of your apps, making them work together efficiently.

APIs

APIs are the essential communication facilitators between different software systems. They allow your chosen software to interact with others, enabling your tech stack components to operate as a cohesive unit. By translating the specific language of each software, APIs enable an efficient and harmonious data exchange, significantly enhancing your tech stack’s overall effectiveness.

Types of apps to add in your HR tech stack

This brings us to yet another important question — which functional tools are the shining stars in the universe of HR tech? Here’s our handpicked list of areas you can cover:

HR Information System (HRIS)

Imagine an HRIS as your digital HR command center, an immaculate hub of information akin to the heart of a well-oiled spaceship. The HRIS is where you find all the data regarding your employees. 

From their job roles, department, and salaries, to personal details like their address and emergency contacts, this tool has everything stored. But that’s not all, this multifaceted tool also efficiently handles payroll and benefits. You can think of it as your personal accountant, who never makes mistakes, works round the clock, and doesn’t ask for a paycheck.

What’s more, HRIS tools also track time and attendance, relieving you from the manual effort of tracking employee hours. Just like a school bell that rings on time and tracks the comings and goings of the students, an HRIS ensures that your employees’ working hours, overtime, holidays, and sick days are recorded flawlessly.

HR Management System (HRMS)

An HRMS tool is your friendly (digital) HR manager. 

It’s like having your very own Dumbledore guiding the employees throughout their lifecycle journeys within the organization. This comprehensive tool ensures that your employee onboarding process is smooth sailing, just like the perfect tour guide introducing a new city to enthusiastic travelers.

Furthermore, it efficiently handles performance management, acting like a personal fitness trainer who monitors your performance, suggests improvements, and encourages progress. It offers a 360-degree view of each employee’s progress, just like an eagle-eyed referee in a crucial game.

Task Management

A task management tool is your handy-dandy task wizard, skillfully automating processes from project management to creating to-do lists. It’s like having a loyal secretary who meticulously records every meeting, tracks all tasks, and ensures nothing falls through the cracks. It effortlessly manages all your tasks and subtasks, a bit like a skillful juggler maintaining balance without dropping a single ball.

No matter how complex or diverse the tasks, this tool keeps track of them all, just like a detective piecing together different clues to solve a puzzle. 

Identity & Access Management

This type of tool is your steadfast digital security guard, ever vigilant and always ready to protect your systems from unauthorized access. Imagine it as your cyber Knight Templar, ensuring that your digital castle remains impervious to any unwanted intrusion. 

It manages and limits access, acting like a bouncer at an exclusive club, allowing only the right people to enter.

Communication Tools

Communication tools are like your digital conference rooms, town squares, and coffee shops rolled into one. They facilitate open conversations, focused discussions, and casual chats, ensuring that geographically dispersed teams can collaborate efficiently. It’s like having a magical meeting room that can accommodate anyone, anywhere, anytime. What’s not to like about that?

Bottom line

Remember, don’t be daunted by the plethora of tools and solutions available in your HR tech stack. 

Handpick the ones that will streamline your processes, integrate your systems, and provide a smooth experience for your team. Your HR tech stack should improve HR efficiency, align with your company culture, and suit your evolving business needs. So, are you ready to put together your award-winning ensemble cast? Better known as your new savior toolkit at work?

Snigdha Gupta

An avid writer and aspiring marketer, Snigdha is a student at Concordia University’s John Molson School of Business.