Are your HR software systems making work easier, or are they more trouble to manage than they’re worth? If you’re not satisfied with your current tech, you’re not alone — just 35% of HR leaders say their current approach is actually benefiting the business. HR teams report several common issues:
- 50% say HR systems perform overlapping tasks, and they only use two-thirds of these systems regularly.
- “Change fatigue” from new tech isn’t uncommon. Employees get overwhelmed by changing systems, which can lead to low adoption and wasted budget.
- 38% of HR leaders have little to no understanding of artificial intelligence (AI), despite the fact that 83% of CHROs predict it will have a prominent role in HR.
- 81% of companies say poor integration limits their ability to meet HR goals.
Your HR tech stack doesn’t have to be siloed and underutilized. Simplify your tech stack and streamline your processes with the right solutions. Discover how building an effective tech stack can deliver real results for your team.
What Is an HR Tech Stack?
An HR tech stack is a set of digital tools and software that HR teams use to manage every stage of the employee lifecycle. Your technology solutions, ideally, form a digital ecosystem for the entire HR function and every stage from hiring to offboarding.
People management departments once ran on paperwork and spreadsheets, but today, a cost-efficient HR technology stack is central to any organization. These connected tools simplify HR tasks, unify talent data, and give talent teams the insights they need to make informed decisions.
Core Components of a Modern HR Tech Stack
Every company’s HR tech stack varies, but most include a central system as the main data source, along with additional tools for specialized HR tasks. A strong HR tech stack covers essential functions like applicant tracking, onboarding, performance management, and learning.
These software systems need to integrate seamlessly to keep processes running smoothly and prevent data silos. Even better, you can keep integrations to a minimum by choosing a comprehensive talent platform that handles every stage of the employee lifecycle.
HRMS/HRIS
A human resources management system (HRMS) or human resource information system (HRIS) is the central database for your core employee data, keeping accurate, up-to-date records that power your entire HR tech stack. It often handles functions like benefits administration and org charts. It maintains consistency across connected platforms, acting as the single source of truth for HR data.
Applicant Tracking System (ATS)
An applicant tracking system (ATS) streamlines the recruiting pipeline by automating job posting, resume screening, and candidate communication. With your HRMS, an ATS ensures new hire data syncs automatically. Your talent team can stop wasting hours on manual entry and focus on supporting a smooth transition from candidate to employee.
Employee Onboarding
Effective onboarding is key to retaining your new hires. Dedicated software automates tasks like digital document management, checklists, and cultural introductions. When integrated with your ATS and HRIS, onboarding tools ensure all employee data is ready on day one, providing a smooth start and reducing repetitive paperwork.
Payroll & Benefits Management
Payroll and benefits management ensure employees are paid accurately and on time, while staying compliant with taxes and deductions. These systems automatically pull key data from your HRMS, reducing errors and streamlining payroll processes.
Compensation Management
Compensation management software supports fair, competitive pay strategies by allowing your HR team to manage salaries, bonuses, and equity based on performance data and benchmarks.
Performance Management
Performance management platforms enable ongoing feedback, goal tracking, formal performance reviews, and career development. They give managers and employees real-time insight into progress and achievements. When it’s integrated with your compensation and learning systems, these tools ensure performance data informs pay decisions and personalized development plans.
LMS/LXP
A learning management system (LMS) or learning experience platform (LXP) delivers or tracks employee training, onboarding courses, and ongoing professional development resources in engaging formats. When integrated with performance management, these platforms help assign targeted training based on skill gaps and support ongoing growth. They also document certifications along the way, helping you maintain your records and stay compliant.
Employee Engagement
Employee engagement tools help measure workplace morale and collect employee feedback through surveys and recognition programs. With these insights, HR professionals and leaders can assess company culture and make targeted improvements.
HR Reporting & Analytics
Reporting and analytics platforms transform data from all your HR systems into clear, strategic insights. Today, they’re enhanced by AI, helping you synthesize data faster than ever and uncover patterns you never would have noticed. With real-time dashboards and visualizations, leaders can quickly spot trends and make informed decisions to strengthen hiring, engagement, and performance.
Complete Talent Management System
A complete talent management system unifies key HR functions — from talent acquisition and onboarding to performance, engagement, and learning — into one platform. That includes data from your HRMS. With the entire employee lifecycle handled in one system, you simplify workflows, reduce integration hassles, and get a holistic view of your workforce from hiring to career growth.
The Benefits of Building a Strong HR Tech Stack
When your HR tools “stack,” or work together harmoniously, you save time and enable smarter, more strategic talent decisions. When you make better talent decisions, your employees are happier and more efficient at work. And when your people are more engaged and productive, your business thrives.
Here’s how a unified HR tech stack delivers real-world benefits:
- Efficiency and Data Integrity: Automating administrative tasks and connecting your HR tools make workflows simpler and reduce manual data entry, freeing your HR team to focus on strategy and culture. That minimizes errors and boosts productivity. 68% of companies report increased HR productivity, and 54% report overall efficiency gains thanks to their tech solutions.
- Better Employee Experience: Cohesive systems provide a user-friendly digital experience for employees — just like what they expect from consumer apps. That’s why 57% of companies see improved employee experiences driven by their HR technologies.
- Informed Decision-Making: Centralized data across your HR tech stack gives leaders real-time insights that help them make smarter, faster decisions about talent and business strategy. The increased visibility helps you spot trends, address gaps, and support growth.
How To Choose the Right HR Tech Tools for Your Stack
Choosing the right HR tech is about finding solutions that address your company's unique needs and integrate best with your current systems. With so many options available, it's crucial to focus on what matters most.
Follow these steps to choose solutions that solve your challenges and unify your existing tools.
1. Identify Your Company Needs
You know the inefficiencies and pain points driving you toward better HR tech, like slow interview processes or too many hours spent on manual data entry. Before you start your search, define those challenges and what it would mean to successfully solve them. For example, a goal could be reducing time-to-hire by seven days.
Gather feedback from the power users of your HR tech stack to better understand challenges and areas for improvement. Create a clear list of “must-haves” and “nice-to-haves,” focusing on features that address the most important issues, like automation to speed up hiring or tools to enhance company culture.
2. Compare & Evaluate Candidate Tools
Focus on vendors that address your biggest needs and work well with existing HR systems that aren’t going anywhere. Prioritize intuitive, user-friendly software that can scale with your company and meets all compliance and security standards.
Some factors to consider include:
- Integration: Does it connect with your non-negotiable existing HR tech?
- User Experience: Is it easy and intuitive for your team to use?
- Scalability: Can it support your company's future growth?
- Security: Does it meet data privacy standards like GDPR or CCPA?
3. Demo, Test, & Iterate
Reading reviews and watching pre-recorded demos can only tell you so much. Always request a trial or schedule a live demo so your team can test the software for themselves. Hands-on use is the quickest way to spot gaps between what a vendor promises and what the software actually delivers.
Pay close attention to the user interface and what kind of access you’d get to the support team. Make sure to test key workflows you and your team use most often to be sure they can really meet your needs.
4. Align With Long-Term Business Goals
Don’t just think about immediate pain points you want software to solve. The right HR solutions support your long-term business goals, too. You don’t want to invest in software that needs replacing in a couple of years.
Consider how each tool will support your plans for future growth, whether it's expanding into new markets or scaling your team. Choose a vendor that acts as a partner and can offer a roadmap that aligns with your company's vision for the future.
Upgrade Your HR Tech Stack With ClearCompany
You don’t need a teetering HR tech stack, juggling multiple logins across countless apps. You need a partner who anchors your talent strategies and simplifies your everyday work.
ClearCo is the backbone of your HR tech stack, a connected, specialized talent solution for managing every step of the employee lifecycle that integrates easily with your HRIS. Our platform keeps your data connected and your team in sync.
Streamline your HR stack with a truly connected talent platform. Schedule a demo with ClearCompany today and discover a smarter, more efficient way to manage HR.
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