Business leaders are looking to invest more into their HR Technology stacks or HR Tech stacks to accelerate their digital transformation efforts. These stacks are different from their predecessors in many ways. You are likely to find HR technology suites adding new AI and machine learning features to bring considerable benefits of data and analytics to HR teams. There are many types of HR tech stacks that distinctly deliver desired outcomes through an integrated system of software, Cloud and app-based solutions.
Why learn about HR Tech stacks?
HR teams are expected to embrace data analytics as a part of their transformation. It not only ensure effectiveness in their means to achieve organizational goals but also bring HR teams closer to other functions such as Marketing, Sales and Finance where X-tech stacks are more prominently evangelized as a game-changer. Companies with next-gen HR tech stacks are maturing faster than the rest by embracing the power of AI and automation for measuring their productivity and effectiveness, optimize costs, and simplify talent management across the organization.
We already know that human resources technology or HRTech in short is an umbrella term for software and associated hardware that helps to automate various human resources functions in organizations. It consists of talent acquisition, payroll and compensation, talent management, employee performance management, workforce analytics, and benefits administration.
HR technology has developed rapidly in recent years, and further exploded owing to the Covid-19 pandemic, with businesses around the world widely adopting core HR technology systems. They source the latest software from enterprise software companies such as SAP and Oracle as well as from specialized HR tech vendors. Employers today are entering a second generation of HR tech by migrating from the pre-existing on-premises systems to new cloud platforms, like SaaS. Even a significant amount of small and midsized companies are headed towards digitizing their human resource functions and are commonly turning to either SaaS platforms or cloud-based HR technology outsourcing vendors.
HCM and HRIS
Human capital management is a term that refers to a variety of business functions that view employees as assets to be managed similar to the other assets, like money and capital equipment that companies manage. Vendors may specialize in s for specific aspects of HCM such as talent acquisition for which electronic job boards and marketplaces are an example, where prospective employees and employers find each other.
HCM has begun to displace core HR technology systems – the HRIS (human resources information system) and HRMS (human resource management system) and includes discrete subsystems for compliance, recruitment, learning and compensation management, performance, and succession planning. HCM is generally automated with integrated software and works on employee records in talent management and core HR systems. HRIS provides technology for storing employee data and automates core HR functions while HRMS additionally offers HCM features like talent management.
Payroll
Many HCM systems incorporate the additional functions of paying and tracking employees’ salaries and withholding deductions like taxes while some other HR technology vendors specialize solely in payroll. Cloud-based HR technology provide payroll services particularly for Small and Medium Businesses with payroll services making the key component of their suite of digital HR offerings or offering it as a standalone service.
Travel and expense management
HR departments travel and expense management to record travel related expenses, provide travel services to employees, pay providers and reimburse the employee through a link to the payroll service. Some companies use expense report software to get a clear picture of the organization’s spending using automated analytics and reporting.
Talent management
Talent management and talent acquisition is managed by organizations through the use of technologies like the Applicant tracking system (ATS) for posting vacancies and screening etc. and Candidate relationship management for maintaining a pool of candidates.
Performance management
Performance management platforms offer interactive features for enabling employee feedback or what is called continuous performance management. Workforce analytics uses this data for optimizing the allocation and development of human capital.
Employee engagement and learning
Employee engagement platforms and mobile apps come with social media-like posting and commenting capabilities, as well as gamification techniques, allowing employers to disseminate information and workers to participate in a fun way.
Corporate training and education programs too have shifted to interactive online platforms. The learning management software (LMS) can customize training programs, track progress, and assess learners’ performance.