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Industry Research Summary: The State of Today's HR Tech Stack 2021

Leverage your HR technology stack to boost employee engagement while making HR more efficient and effective

Posted on 07-29-2021,   Read Time: - Min
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The importance of HR technology has been amplified in the past year due to the Covid-19 pandemic. HR professionals had to adapt quickly, using technology to better serve remote workers and support virtual teams.



In a recent research, conducted by HR.com’s HR Research Institute and Oracle, we explored a variety of topics, including:
 
  • the importance of HR tech stacks to today’s organizations
  • the characteristics of current HR tech stacks
  • the impact of HR technology on HR productivity and systems
  • the most common HR tech stack pain points and problems
  • how HR tech stacks are likely to change in the future
  • how organizations with higher versus lower quality HR tech stacks differ
Here are the key findings:

Finding #1: Mobile access and self-service are the most widely cited characteristics of today’s HR tech stacks.

Ability to facilitate employee self-service (66%) and mobile access capabilities (65%) are the most common characteristics of current HR tech stacks. Fewer, however, say their HR tech stack automates talent management processes (47%) or integrates talent management
solutions (44%). Only a third say their tech stack is relatively easy to reconfigure. Just 28% say their HR tech stack nurtures and reinforces the desired corporate culture.
 
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Finding #2: HR tech stacks are among the top ten priorities for most HR departments and most say their tech stack supports the organization’s business goals and strategies.

Having a strong HR tech stack is among the top three HR priorities in over half (56%) of responding organizations. A further 29% say it is among the top ten HR issues. While almost two-thirds (63%) of respondents say their HR tech stack supports the organization’s business goals and strategies well or extremely well, 37% say their tech stacks support goals and
strategies only moderately well or worse.

Finding #3: HR tech stack integration is a commonly cited concern, but there are other problems and pain points as well.

Only 21% say their HR tech stack components integrate extremely well with one another. Further, 37% say their HR tech stack systems are not well integrated or cannot be integrated.

One-fifth or fewer say their HR tech stacks provide accurate, actionable, or meaningful metrics/analytics to a very high degree. While integration issues and difficulty getting accurate and useful data are the most common pain points or problem. Other issues include:
 
  • not enough of solutions needed
  • not using all the stack’s capabilities
  • systems do not allow enough customization
  • not enough in-house technical expertise
 
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