What is HR technology? 10 types & best practices

HR is evolving at lightning speed. Hybrid work, a global talent pool, ever-changing labor laws—the challenges facing people teams today are unprecedented. To adapt and thrive in this new world of work, HR professionals need to leverage the right tools and technologies.

That's where HR technology comes in, which is transforming the way organizations manage their most valuable asset—their people. By automating tedious tasks, surfacing data-driven insights, and creating seamless employee experiences, HR professionals can shift their focus from administrative paperwork to strategic initiatives.

But with countless solutions on the market, how do you choose the right ones for your business? What benefits can you expect? And how do you implement them successfully? We answer these questions and more in this piece.

What is HR technology?

HR technology refers to the software, platforms, and automation tools that organizations use to streamline and optimize HR processes. It covers a wide range of functions, from recruiting and onboarding to performance management and offboarding.

The goal is to make HR more efficient, effective, and strategic. By automating routine tasks and centralizing data, HR tech helps teams focus on high-value activities like talent development and workplace initiatives.

Core functions of HR technology

While the specific features vary by solution, most HR technologies offer some combination of the following core functions:

• Talent acquisition: Managing job postings, sourcing candidates, maintaining talent pools, and engaging with potential hires
• Payroll and compensation: Processing paychecks, managing direct deposit, and ensuring tax compliance
• Benefits administration: Enrolling employees in health insurance, 401(k) plans, and other perks; managing open enrollment and life event changes
• Compliance management: Maintaining required documentation, ensuring regulatory requirements are met, and monitoring policy adherence
• Learning and development: Delivering training content, tracking certifications, and managing career paths
• People analytics: Generating reports, dashboards, and predictive insights on turnover, diversity, engagement, and more

6 benefits of HR technology

The case for investing in HR technology is compelling. Here are just a few of the benefits organizations can expect:

1. Stronger recruitment processes

In today's competitive talent market, speed is the name of the game. The best candidates are off the market in 10 days. HR technology can help you attract top talent faster by automating job postings, resume screening, and interview scheduling. By reducing time-to-hire, you can snap up star performers before your competitors do.

2. Streamlined onboarding

First impressions matter. A poor onboarding experience can lead to new hire turnover of 20% in the first 45 days. HR platforms can help create a welcoming onboarding process and automate tedious paperwork, so new hires can focus on learning the ropes. They also ensure important tasks like equipment provisioning don't fall through the cracks. The result? Engaged, productive employees from day one.

3. Improved tracking and scheduling

Spreadsheets and paper timesheets are a recipe for errors and overtime. HR technology makes it easy to track employee hours, manage schedules, and handle time-off requests. Mobile apps let employees clock in and out from anywhere, while intelligent scheduling tools monitor coverage for every shift. 

4. Enhanced compliance with new regulations

Keeping up with ever-changing labor laws is a full-time job. From GDPR to FLSA, HR technology helps you stay compliant by automating record-keeping, data security, and reporting requirements.

5. Real-time analytics for better decision making

Data is the core of HR. But too often, it's scattered across disparate systems and spreadsheets. HR technology integrates all your people data into a single platform, so you can easily spot trends and make informed decisions.

6. Improved data security

Employee data is highly sensitive. A single breach can damage your employer brand and cost millions in fines. HR technology helps you protect confidential information with robust security features like encryption, access controls, and audit trails.

10 types of HR technology

Now that we've covered the benefits, let's explore some of the most common types of HR technology on the market:

1. Applicant tracking systems (ATS)

An ATS is software that manages the entire recruiting process, from job posting to offer letter. It centralizes candidate information, automates workflows, and provides reporting on key metrics like time-to-fill and source of hire. Top ATS like Rippling Recruiting offer features like headcount planning, custom reports, two-way interview scheduling, and branded career sites to create a seamless candidate experience.

2. Human resource information systems (HRIS)

An HRIS is the central database for all employee information. It tracks demographics, job history, compensation, performance, and more in a secure, digital format. Beyond record-keeping, a standout HRIS automates core HR processes like onboarding, offboarding, and compliance. Self-service access lets employees update their own information, while customizable reports provide real-time people analytics.

3. Payroll management systems

Payroll is one of the most critical, complex, and compliance-heavy HR functions. Today's payroll platforms streamline everything from wage calculations to tax withholdings and direct deposits. They also handle tasks like W-2/1099 processing, benefits deductions, and garnishments. The best payroll solutions like Rippling Payroll integrate with time tracking, benefits, expenses, and time off to ensure accurate, efficient pay runs.

4. Benefits administration tools

Benefits are essential for employee satisfaction, but their administration is complex. Modern benefits platforms unify the entire process—from plan selection and broker relationships to payroll and HRIS—into one seamless system. Look for solutions that automate enrollment workflows, support both new and existing plans from major carriers, and ensure compliance with ACA and COBRA regulations.

5. Time and attendance software

Manual time tracking creates payroll headaches and compliance risks. Today's automated platforms handle everything from mobile clock-ins to overtime calculations, while monitoring compliance with meal breaks and local labor laws. Managers gain real-time insights into attendance patterns and labor costs, helping them make better staffing decisions. 

6. Performance management platforms

Performance reviews are often dreaded by managers and employees alike. Performance management platforms aim to make the process more meaningful and actionable with features like goal setting, continuous feedback, and peer recognition. They provide a centralized place to track employee development, identify top performers, and calibrate ratings across teams. Managers get coaching tips and review templates, while employees get a clear roadmap for growth. 

7. Learning management systems (LMS)

In the skills economy, learning is no longer a nice-to-have—it's a business imperative. An LMS helps organizations deliver, track, and report on employee training at scale. It provides a centralized library of e-learning content, from onboarding courses to leadership development programs. Employees can access training on-demand from any device, while managers can assign required courses and track completion rates.

8. Employee engagement tools

Engaged employees are more productive, innovative, and likely to stick around. But measuring and improving engagement is a challenge. Employee engagement platforms help by gathering real-time feedback through pulse surveys, eNPS scores, and anonymous forums. They provide analytics on key drivers of engagement, like recognition and career growth. And they offer action plans for managers to address issues before they lead to turnover. 

9. Compensation management software

Compensation management platforms provide the data and workflows to make smart pay decisions. They offer salary benchmarking, pay equity analysis, and merit cycle tools. Managers can model out different scenarios and route approvals up the chain. And employees get a clear view of their total rewards package.

10. HR service delivery platforms

As the workforce becomes more distributed and diverse, HR must find new ways to support employees at scale. HR service delivery platforms provide a central hub for employees to access HR information and support. They offer features like a knowledge base, case management, and live chat. Employees can get instant answers to common questions, while HR can track and resolve more complex issues. 

Will HR technology replace HR professionals?

With all this talk of automation, it's natural to wonder if HR technology will replace human HR professionals. The short answer is no. In fact, HR technology is empowering HR to be more strategic and valuable than ever before.

When software handles paperwork and routine tasks, HR teams can focus on what matters most: developing talent, coaching leaders, and driving culture initiatives. Instead of processing timesheets and tracking compliance forms, they can analyze workforce trends and shape strategic initiatives. HR technology doesn't eliminate the human element—it amplifies it.

In short, the most successful HR teams will be those that embrace technology to augment their skills and expertise.

5 HR technology trends

The HR tech landscape is constantly evolving. To stay ahead of the curve, here are 5 key trends to watch:

1. AI-powered recruitment and performance management

AI is reshaping talent management from hiring to development. Recruitment tools now automatically screen resumes, assess candidate responses, and predict job fit based on data patterns. For existing employees, AI analyzes performance metrics and feedback to identify rising stars, flag retention risks, and deliver targeted development recommendations. This helps HR teams make faster, more informed decisions about talent.

2. Cloud-based HR systems

The days of on-premise HR software are numbered. Cloud-based systems offer instant access to employee data from anywhere, automatic security updates, and seamless integration with other business tools. This means better scalability, stronger compliance, and smoother workflows across the organization.

3. Remote work management tools

The pandemic has accelerated the shift to remote work. To support this new way of working, organizations are investing in tools that enable remote collaboration, communication, and productivity. From virtual onboarding to remote performance management, HR technology is evolving to meet the needs of a distributed workforce. 

4. Employee wellbeing technology

The pandemic has also shone a spotlight on employee wellbeing. Mental health, burnout, and work-life balance are top of mind for today's workforce. In response, organizations are investing in technology that supports employee wellbeing. From mental health apps to virtual fitness classes, there are a growing number of solutions that help employees manage stress, build resilience, and prioritize self-care.

5. People analytics and data-driven HR

People analytics has transformed HR from intuition-driven to data-driven. Modern HR platforms turn workforce data into actionable insights, helping predict turnover risks, track diversity goals, and identify skills gaps before they impact business. With proper training and IT partnership, HR teams can now make strategic decisions backed by real data and measure their impact on business results.

5 tips to improve your HR technology strategy

Investing in HR technology is just the first step. To truly transform your HR function, you need a strategic approach to implementation and adoption. Here are five tips to get the most out of your HR tech stack:

1. Start with your business goals

Don't invest in HR technology for technology's sake. Start by clearly defining your business goals and the HR capabilities you need to support them.

For example: If your goal is to improve employee retention, you might invest in tools that support career development, manager training, and feedback loops. If your goal is to scale globally, you might prioritize solutions that enable multi-country payroll and compliance.

By aligning your HR technology strategy with your business strategy, you can ensure you're investing in the right tools for the right reasons.

2. Choose an all-in-one solution

One of the biggest challenges with HR technology is integration. When you have multiple point solutions for different HR functions, it creates data silos and fragmented workflows.

Instead, look for an all-in-one solution that can handle all your core HR needs in one place. Rippling is a great example of a unified platform that connects every part of the employee lifecycle, from hiring to offboarding.

With Rippling, you can manage HR, IT, and Finance in one system, with one source of truth for employee data. Automated workflows and real-time integrations keep your data accurate and up-to-date across the board.

3. Prioritize the employee experience

At the end of the day, HR technology is only as valuable as the experience it creates for your employees. If your HR tools are clunky, confusing, or difficult to use, adoption will suffer and you won't see the full benefits of your investment.

When evaluating HR technology, put yourself in your employees' shoes. Look for solutions with intuitive interfaces, mobile access, and self-service options. Consider the user journey across different touchpoints. The best HR technology will create a seamless, personalized experience that empowers employees to take control of their own data and development.

4. Invest in change management

A successful HR tech rollout requires thoughtful change management. Start by clearly communicating benefits to all users and training them on key features. Engage team champions to support adoption, then implement gradually—focusing on high-impact areas first. Gather feedback and adjust as needed to ensure long-term success.

5. Measure and iterate

Finally, don't forget to measure the impact of your HR technology investments. Set clear goals and KPIs upfront, and track progress over time. Look for ways to optimize your HR processes and workflows based on the data you collect. Identify areas where you can automate manual tasks or provide more self-service options. Regularly survey employees and managers to gather feedback on the user experience. This ensures your technology keeps delivering value while meeting evolving business needs.

By following these tips, you can create an HR technology ecosystem that not only streamlines HR operations, but also drives better business outcomes.

Rippling: Strategic HR technology for your business

If you're looking for a comprehensive HR technology solution that can grow with your business, look no further than Rippling. 

Rippling is the only platform that connects every part of the employee lifecycle, from hire to retire. With Rippling, you can:

• Manage all your HR, IT, and Finance needs in one unified platform.
• Onboard new hires in 90 seconds, with payroll, benefits, and device setup all happening automatically.
• Run global payroll in minutes, with built-in compliance for over 185 countries. 
• Get real-time visibility into key HR metrics like headcount, turnover, and diversity.

But Rippling is more than just HR technology. It's a platform that can automate your entire business, from identity and access management to corporate spending. With over 600 pre-built integrations and customizable workflows, Rippling adapts to your unique needs and processes.

And with best-in-class security and compliance features, you can trust Rippling to keep your employee data safe and compliant. From SOC 2 to GDPR, Rippling has you covered.

Whether you're a startup or a global enterprise, Rippling has the scalability and flexibility to support your growth. And with dedicated implementation and support teams, you'll have the guidance you need to succeed.

HR technology FAQs

How can HR technology facilitate remote and hybrid work?

Cloud-based HR platforms enable anywhere-access to essential services, from virtual onboarding to performance management. Employees can handle HR tasks remotely, while managers use digital tools to keep teams connected and engaged, regardless of location.

How do we measure the ROI of HR technology investments?

To measure the ROI of HR technology, start by defining your goals and KPIs upfront. Track key metrics like time-to-hire, engagement rates, and turnover before and after implementation. Combine quantitative data (cost savings, efficiency gains) with qualitative feedback from users. Focus on concrete improvements like reduced paperwork, faster onboarding, and fewer compliance issues.

How does HR technology support compliance with labor laws and regulations?

Modern HR systems automate compliance across multiple regulations. Time tracking ensures accurate overtime calculations, benefits platforms handle ACA reporting, and learning systems monitor required training completion. Built-in features like audit trails, secure storage, and automatic updates help companies stay current with changing regulations.

What are the security and privacy considerations for HR technology?

HR technology usually handles sensitive employee data. As such, security and privacy are top concerns for any HR technology investment. When evaluating HR technology vendors, look for those that prioritize data security and privacy. This might include features like encryption, access controls, and regular security audits.

Be sure to understand where your employee data will be stored and who will have access to it. And consider the vendor's compliance with relevant regulations, like GDPR or HIPAA. Also train employees on security best practices and maintain incident response plans to protect your workforce's confidential information. By taking a proactive approach to security and privacy, organizations can leverage HR technology to its fullest potential while protecting the data of employees.

This blog is based on information available to Rippling as of November 7, 2024.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.