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It seems that barely a day goes by without someone trying to sell me their latest and greatest software product.

With a galaxy of HR software tools that promise the universe, how can you cut through the noise and build an HR tech stack that works best for your organization?

Drawing on my years of experience implementing HR software, I’ll share my knowledge and best practices to help you do so.

What Is An HR Tech Stack?

An HR tech stack is a suite of integrated digital tools and software that an organization uses to manage its human resources functions. It helps streamline processes like admin, recruiting, onboarding, payroll, benefits administration, performance management, learning and development, and compliance.

The Case For An HR Tech Stack

Despite what the salesperson from the vendor might tell you, no system is great at everything.

For example, an “all-in-one" human resources information system (HRIS) might have an applicant tracking system bolted on as an afterthought.

Building your HR technology stack is a case of mixing and matching tools that help support your HR operations and easily integrate with each other (super important).

Bottom line is that, while you could go for a “one HR platform to rule them all” approach, it’s usually the case that a mix is best. You can also save money that way too.

7 Benefits Of An HR Tech Stack

1. Efficiency and automation

An HR tech stack automates repetitive, time consuming HR tasks like processing payroll, job posting, and data entry, reducing administrative burdens and errors.

Similarly, self-service portals allow workers to access and update their info, reducing the number of HR requests.

This affords HR teams more time to focus on strategic initiatives such as talent development and employee engagement.

2. Cost savings

By automating HR functions, companies reduce the need for additional HR staff and minimize costly human errors. It also helps avoid compliance penalties by ensuring accurate payroll processing and tax filings.

Author's Tip

Author's Tip

The more tasks you can automate, the less time you’ll need to spend on routine tasks. Consider your salary and how many hours you spend on routine tasks; the ROI could be something that works in your favor when talking to the decision makers.

3. Improved hiring and onboarding

The right stack streamlines recruitment by organizing applications, automating interview scheduling, and tracking candidate progress.

Onboarding software ensures new hires have a smooth experience with digital paperwork, training modules, and structured workflows.

4. Better employee experience

The aforementioned self-service portals empower employees to manage benefits, request time off, and access pay stubs without HR intervention. 

Engagement tools foster a positive work culture through continuous feedback, recognition programs, and wellness initiatives.

5. Data-driven decision making

A properly integrated stack will provide rich insights into workforce trends, such as turnover rates and performance metrics, helping leaders make informed decisions. 

These data-driven insights support long-term planning and proactive talent management strategies.

6. Scalability

A well-integrated HR tech stack grows with the company, making it easy to add new team members, automate compliance, and expand the HR function.

This is especially valuable for startups and remote teams operating in multiple locations.

Pro Tip: Mark Wei

Pro Tip: Mark Wei

The smaller the HR department, the less systems you use the better, so you might want to get an all-in-one HR system in the beginning and then extend with more specialized tools as your needs develop. This is why the ability to integrate well, ideally with open APIs or native connectors, is key. — Mark Wei, Founder, PropertySensor

7. Compliance and security

HR software helps ensure legal compliance by automating tax calculations, labor law adherence, and HR document management. It also safeguards sensitive employee data with encryption, secure storage, and role-based access controls.

Stay at the top of your game with insights, inspiration, and how-to’s on the biggest and most pressing topics in HR and leadership.

Stay at the top of your game with insights, inspiration, and how-to’s on the biggest and most pressing topics in HR and leadership.

HR Tech Stack: Common Components

While the mix will vary across organizations, there are some common HR tool types that most organizations will utilize to varying degrees.

Core HR software

The term core HR software refers to a sub-set of HR programs that function as employee databases. Within that category, there are numerous options that most HR professionals would consider "core HR software," including tools to manage crucial core processes like payroll, benefits management, and attendance tracking.

HRIS/HRMS/HCM

These tools are the backbone of your tech stack. They’re your source of truth for employee data such as contracts, attendance, benefits, payroll, and personal information and many offer self-service to make updating this information easier.

Many of these tools will have data reporting functions that make it easy to keep track of important HR metrics such as headcount and turnover.

For more, check out our pick of the best human resource management systems.

Payroll

The purpose of payroll software is to ensure your employees are compensated for their labor in a timely and efficient fashion. While all HRMSs and some HRISs will have a payroll feature, that’s not always the case so you may need to buy separate payroll software.

While I recommend combining the two to help minimize data discrepancies, you can also make the case for separate systems if:

  1. You have a global team and the existing payroll feature in your HRMS may not cover that on a compliance level.
  2. You’re a small team and can’t justify forking out for an expensive HRMS product.

For more, check out our pick of the best payroll software.

Benefits administration software

Benefits administration software simplifies the benefits administration process by automating benefits enrollment, managing compliance, and providing employees with self-service access to their plans. 

Many platforms integrate with payroll and HR systems, offer decision-support tools, and ensure accurate benefits reporting.

This helps reduce administrative burdens, improve employee engagement with benefits programs, and ensure compliance with regulatory requirements.

Some popular platforms include Thatch for health benefits and Remofirst for global teams.

For more options, check out our pick of the best benefits administration software.

Recruiting software

Recruiting software comes in a few different flavors so I’ll provide a brief overview of each. There are also different systems designed for small business hiring or enterprise recruiting needs too.

Applicant tracking systems

There comes a time in most organizations’ lives when managing the recruitment process with spreadsheets just doesn’t cut it any longer.

Applicant tracking systems help you manage candidates' progress through your hiring process, report on key recruiting metrics, and even post jobs and source candidates.

Some popular platforms include Breezy HR for startups and SMEs and Greenhouse for mid to larger companies.

For a deeper dive, check out our pick of the best applicant tracking systems

Candidate sourcing tools

Sourcing candidates can be one of the most time-intensive aspects of talent acquisition, hence the rise of specialist tools to help expedite the process.

Common features include candidate databases, direct integrations with job boards and social network sites, and advanced talent discovery tools.

Some tools I’ve heard good things about are Fetcher.AI and Amazing Hiring, both of which use AI extensively.

For more info, check out our pick of the best candidate sourcing tools.

Video interviewing software

With so many interviews being conducted online now, many organizations are utilizing video interviewing software to help conduct and assess video interviews.

Key features include one-way and two-way video interviews, collaboration tools, in-depth analysis, and customizable templates. 

Popular providers include Jobma for enterprises and Willo for startups and you can check out my pick of the best video interview platforms.

Referral software

Employee referrals are one of the most effective ways to attract high-quality candidates, yet many companies struggle to manage referral programs efficiently.

Referral software simplifies and automates the employee referral process, allowing people to easily submit referrals, track progress, and receive rewards.

HR teams can monitor program performance, incentivize participation, and measure the impact of referrals on hiring success.

Some popular solutions include Eqo for frontline workers and the easily-integrateable Erin.

For more, check out our pick of the best referral software.

Recruitment marketing platforms

Recruitment marketing platforms help businesses promote their employer brand and proactively engage potential candidates.

These platforms offer features such as career site optimization, targeted job advertising, social media promotion, and candidate relationship management (CRM).

By leveraging recruitment marketing tools, organizations can improve their talent outreach, nurture candidates before they apply, and create a more compelling hiring experience.

Some popular solutions include Workable (also an ATS) and Talentreef for high-volume recruiting

For more, check out our pick of the best recruitment marketing platforms.

Onboarding software

Onboarding software helps companies streamline the process by automating administrative tasks, providing digital document management, and offering structured onboarding workflows. 

Many platforms include self-service portals, task reminders, and interactive training modules to help new employees integrate quickly and confidently.

By leveraging onboarding technology, companies can improve new hire retention, boost productivity from day one, and create a more seamless transition into the organization.

Many HRMSs have an onboarding workflow, but there are other ways of conducting onboarding outside of these including specialized onboarding software.

Learning management systems

Learning management systems (LMS) help businesses deliver, track, and manage employee training in a structured and scalable way. 

These platforms offer features like course libraries, interactive learning modules, automated progress tracking, and certification management. 

By using an LMS, organizations can foster professional development, improve workforce skills, and ensure compliance with industry training requirements—all while creating a more engaging learning experience.

It’s often difficult to track the ROI from L&D programs and LMSs assist in this by capturing data that will help you to figure out your L&D metrics

Some popular platforms include 360 Learning that promotes collaborative learning or Workleap for an LMS combined with performance management features.

For a deeper dive, check out our pick of the best learning management systems.

Performance management software

Performance management is tricky to get right. Performance management software helps to simplify the performance review process, set and track goals, analyze productivity, record achievements, and plan for the future.

Key features include 1:1 check-in templates, tools to solicit 360-degree feedback, and assessment tools.

Popular tools include ThriveSparrow for AI-powered performance insights and Primalogik for 360-reviews.

For more, check out our pick of the best performance management software.

Employee experience software

Employee recognition platforms

While not the be-all and end-all, it’s no secret that employee recognition helps boost employee motivation and can aid in retention and recruitment.

There are ways to recognize employees beyond promotions and raises, and this is where employee recognition software can help. Integrating an efficient HR tech stack can streamline the management of employee benefits packages, saving time and effort.

Features include leaderboards, a public recognition wall, rewards, and automated recognition (think birthdays and work anniversaries).

Some popular employee recognition software include Nectar for peer-to-peer recognition and Mo for hybrid and remote work.

For more, check out our pick of the best employee recognition software.

Employee survey tools

Gathering employee feedback is crucial for improving the employee experience and employee surveys are a great method of doing this.

Employee survey tools help with designing and disseminating surveys and analyzing the results. Some popular vendors include Perceptxy for their additional consulting services or you could simply use Typeform.

Key features include survey builders, survey reports, and benchmarking data. For more, check out our list of the best employee survey tools.

HR analytics software

As HR grows in status as a strategic partner, using data to support strategies and implement change is increasingly important.

HR analytics software helps you mine for rich HR data and present it in a way that’s relevant to your audience and easy to digest.

Key features include predictive analytics, customizable dashboards, and real-time reporting. Options here depend on your capabilities and how deep you want to go, but some popular tools include the mighty Excel and Workday HCM.

For more info, you can check out our pick of the best HR analytics software.

How To Build An HR Tech Stack: 5-Step Process

Over time, you'll upgrade HR software and make new additions to meet changing business needs.

Here’s a process to decide whether or not a new tool is for you and make a business case for software if it's needed:

1. Assess your needs

To begin selecting an HR tech stack, you should first conduct an internal audit of your HR processes to identify inefficiencies and pain points.

Understanding what tasks are consuming the most time and where automation or self service can create efficiencies will help prioritize the right tools.

Additionally, gathering feedback from multiple stakeholders leadership (including budget), departments like IT and finance, and the wider employee population is essential to ensure that any new system aligns with the needs of the entire organization and set the foundation for a well-structured HR tech stack.

You’ll also want to make sure you have a clearly defined org structure and that your payroll matches setup matches your accounting setup etc.

Author's Tip

Author's Tip

A helpful approach is to list essential features separately from optional ones, ensuring that you focus on what will bring immediate value to your company.

2. Contact vendors

Now it’s time to delve into researching HR software vendors by reading reviews, case studies, and expert comparisons.

It’s also beneficial to look for tools that are specifically designed for your industry or location e.g. Canadian payroll software as they may include features that cater to your specific HR requirements

Beyond features, evaluating customer support quality is essential, as a strong support team can make a significant difference when troubleshooting issues or implementing new processes.

In addition to online research, reaching out to peers in similar growth stages or industries can provide first-hand experiences with different tools.

Learning from their successes and challenges can help avoid common pitfalls and ensure a better selection process.

You can also talk to one of our advisors who will help you narrow down solutions:

3. Make a shortlist and reach out

Now you’ve identified some likely vendors, it's time to go a bit deeper and book some demo calls.

  1. Send each vendor a request for information (RFI) so you can compare your options point for point
  2. If you want to be really thorough, send each of your shortlisted vendors a request for proposal (RFP). This will include key information about your company, your specific needs, a vendor questionnaire, and any specific proposal submission rules they should follow, such as submission deadlines.
  3. Schedule a meeting with their sales rep and go through your questions.

These calls, which should ideally include demonstrations of the product in action to help assess features and user experience, will also help you get a feel for the vendor and whether you can form a good partnership.

To help compare vendors, use this handy evaluation template.

Author's Tip

Author's Tip

Beware of the salespeople’s promises! If it’s “on the roadmap”, it’s unlikely to happen. Before choosing, ensure you meet the implementation team(s) and service advisors that would be taking your calls. Even go visit their service center if you can!

4. Make the business case

With all the above data gathered, it's time to put together your business case for HR software. This doesn't have to be a 10-page document, it can be as simple as a one-page memo (because who has time to read 10 pages anyway).

Decision-makers are looking for answers to the following questions:

  • How much does the HR software cost?
  • What pain points will the software solve?
  • If we didn’t invest in the software, then what?
  • How long will it take to implement?
  • Why do we need to invest now?
  • What is the ROI of implementing HR software (remember my tip from above regarding this or use Dan George’s guide in his article on HR financial literacy).

You may not know the answers to the cost question; however, seeking approval at this stage will set you up for success.

Author's Tip

Author's Tip

Be sure to get very clear information about support costs. Many vendors charge hefty fees for L2 support.

Here's a business case template you can use for HR Software

  • Executive Summary: Brief overview of the proposal, key benefits, and conclusions.
  • Current Situation and Problem Statement: Description of the current state and specific challenges or problems being addressed.
  • Proposed Solution and Benefits: Detailed description of the proposed solution and its expected benefits, including a cost-benefit analysis.
  • Implementation Plan and Risk Assessment: Step-by-step implementation strategy, timeframe, and a summary of potential risks with mitigation plans.
  • Conclusion and Recommendations: A concise summary of the business case with final recommendations for decision-makers.

5. Implement and onboard

Now comes the hard part! The main reason I see companies fail to see ROI on software purchases is failing to follow through on implementation and properly integrate their shiny new tool into day-to-day operations.

Effective change management is crucial. For people to want to use your new software, they need to understand how it benefits them (e.g. it saves them time/their PTO requests get approved faster) and know how to use it.

Here are some tips to help with this: 

  • Clearly communicate that you’re adopting new HR software and what this will mean for people (invite them to come forward with questions).
  • Take advantage of any onboarding and training offered by the vendor and make it mandatory for employees to complete this training within a realistic timeframe.
  • Charge someone with the responsibility of spearheading implementation and being a point of contact for any questions (and feedback) employees might have.
  • Make employees aware of any self-service resources available and make sure they know how to log a support ticket if they run into difficulties.
Pro Tip: Is Your Tool Working?

Pro Tip: Is Your Tool Working?

If a system isn’t being used or if employees keep finding workarounds, it’s probably not doing its job very well. HR, managers and employees will quickly tell you what is frustrating or unnecessary, and monitoring usage data can also reveal a lot.

HR Tech Stack Examples

Lastly, here are some examples to give you a flavor of what an HR tech stack might look like for companies of different sizes.

Small Startups (0-50 employees)

💡 Focus: Simplicity, cost-effectiveness, and automation

HRIS/Payroll: Gusto, Rippling, Justworks (if using an EOR)
Recruiting/ATS: BreezyHR, Lever, Workable
Performance Management: Lattice (light version), 15Five, Culture Amp
Engagement & Feedback: Officevibe, Peakon, TinyPulse
Learning & Development (LMS): Trainual, Lessonly
Benefits & Compliance: Gusto, Rippling, or Deel (for global compliance)

(Perhaps this shortlist of free HR software might help you)

Medium-Sized Businesses (50-200 employees)

💡 Focus: Scalability, compliance, and structured processes

HRIS/Payroll: BambooHR, HiBob, Paycor, Rippling
Recruiting/ATS: Greenhouse, Lever, Workable
Performance Management: Lattice, 15Five, Culture Amp
Engagement & Feedback: Peakon, Officevibe, Quantum Workplace
Learning & Development (LMS): Lessonly, LearnUpon, Docebo
Benefits & Compliance: Rippling, Zenefits, Sequoia One (PEO)

Maturing, Global Startups (200-500 employees)

💡 Focus: International payroll, structured HR, and robust analytics

HRIS/Payroll: HiBob, Workday (Core), ADP Workforce Now, Rippling (global-friendly)
Recruiting/ATS: Greenhouse, Lever, SmartRecruiters
Performance Management: Lattice, Culture Amp, 15Five
Engagement & Feedback: Peakon, Culture Amp, Qualtrics
Learning & Development (LMS): Docebo, Lessonly, SAP Litmos
Global Payroll & Compliance: Deel, Papaya Global, Remote, Velocity Global

Larger Organizations/Enterprises (500+ employees)

💡 Focus: Enterprise-grade compliance, automation, and integrations

HRIS/Payroll: Workday, SAP SuccessFactors, Oracle HCM, UKG
Recruiting/ATS: Greenhouse (Enterprise), iCIMS, SmartRecruiters, Avature
Performance Management: Workday, Lattice (Enterprise), Culture Amp, SuccessFactors PM
Engagement & Feedback: Qualtrics, Glint, Culture Amp
Learning & Development (LMS): Cornerstone OnDemand, Docebo, SAP Litmos
Global Payroll & Compliance: ADP GlobalView, Deel, Papaya Global, CloudPay

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Kim Behnke

Kim Behnke is an HR Tool Expert & Writer for People Managing People. She draws on her 9 years of human resources experience and her keen eye for systematic processes to support her analyses of the top HR tools on the market. She is passionate about maximizing efficiencies and streamlining workflows to ensure internal systems run smoothly. Kim's HR experience includes recruitment, onboarding, performance management, training and development, policy development and enforcement, and HR analytics. She also has degrees in psychology, writing, publishing, and technical communication, and recently completed a Certified Digital HR Specialist program through the Academy to Innovate HR. When away from her desk, she can usually be found outside tending to her ever-expanding garden.