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What Is HR Technology and Why Does It Matter?

Most HR professionals don’t enter the field for data entry. They do it to empower people. In fact, a recent McKinsey & Company study reveals HR’s biggest areas of focus are:

  • digital transformation
  • agility and fluidity
  • the employee experience
  • advising the C-suite

When they’re able to make a strategic impact, HR professionals thrive. They can champion wellness, cultivate inclusivity and carve their place among executive leadership. But none of this is possible when HR’s weighed down by tedious, redundant and/or manual tasks. Furthermore, tasks involving employee data could — and should — be completed by employees themselves.

HR technology helps overcome both of these challenges. When done right, HR tech empowers workers and gives HR professionals the agility and insight they need to support an entire organization.

What is HR technology?

Put simply, HR tech is software that simplifies and automates HR processes. Tasks fall under payroll, scheduling, recruitment, performance management, workforce development and more. Exceptional HR tech even measures ROI and uncovers opportunities for even greater efficiency.

HR tech stands as a pillar of the employee experience. It should deliver the same ease of use, convenience and control employees enjoy as consumers. For workplace tech, this means one app with one login and password that:

  • requires no integration
  • eliminates manual data entry and reentry
  • automates workflows
  • lowers labor costs
  • prioritizes security
  • scales with a business
  • offers a dedicated specialist

Ultimately, by removing the hindrance of multiple, disjointed systems, tech allows HR professionals to do what they do best: focus on the business of business.

Does HR technology replace HR professionals?

No, but it’s a myth some employers still believe. HR tech doesn’t take away from HR; it transforms it. A recent Deloitte study revealed technology helps HR do more in terms of strategy, compliance and communication.

Because HR tech handles the repetitive processes, HR professionals are free to work on tasks software simply can’t, like conflict resolution and developing new employee programs. In other words, tech helps emphasize the “human” piece of “human resources.”

This pays off in a big way for businesses and their employees. According to the international accounting firm KPMG, automation helps HR professionals by handling “high-volume, repetitive, rules-based tasks.” Instead, they’re able to focus on:

  • efficiency
  • performance
  • competitiveness

Imagine HR that’s less focused on re-keying endless spreadsheets, and more centered on enhancing workplace culture and the employee experience. HR professionals need a chance to plan how to make their organizations better. The right tools give them the opportunity.

HR tech eliminates short-term annoyances, thereby opening the door for long-term improvements and fully actualized HR professionals.

How do employees use HR technology?

HR tech doesn’t just help HR. Self-service tools empower employees to manage their data anytime, anywhere. Be it providing direct deposit authorization, tracking hours, reviewing PTO accruals, enrolling in benefits, managing payroll and more, it’s all available through the right HR tech.


It makes sense. After all, who knows their own data better than employees? And with self-service HR tech, there’s no need to share personal info by email or, worse, paper.

When employees truly take accountability for their data, it helps reduce compliance exposure and ensure accuracy. More employee control equals less overall concern for HR.

Do enterprises need HR technology?

HR tech helps businesses of any size. When HR isn’t drowning in manual processes, it has time to work toward raising employee satisfaction, productivity and retention.

Workforce happiness and engagement impact enterprises, too. The Great Resignation affects businesses in every industry at every level. Giving employees tech they actually want to use is necessary to overcome turnover and provide a great experience.

But this isn’t true for many employees. According to a OnePoll survey commissioned by Paycom, 77% of workers reported being frustrated by outdated tech at work. In fact, 67% of those same employees say they would take a pay cut for twice-better tech. Innovative and streamlined HR tech heals their headaches and eliminates the unnecessary.

HR tech wouldn’t be reliable if it wasn’t secure. Data that flows between tools in one database with a single login and password limits exposure. Employees trust organizations that protect the info affecting them most.

By doing away with outdated and insecure processes, HR tech helps enterprises attract and retain top talent.

Do small businesses need HR technology?

Small businesses have to fire on all cylinders to be successful. HR tech isn’t just an option for them; it’s now necessary to stay agile.

When employers “do it all,” tedious, manual tasks keep them from pursuing what really matters. Self-service HR tech relieves this burden and places HR data in the hands of the people who know it best: employees! The right HR tech even grows with a business, supporting it at each level of success.

Every cost and second counts. Research from Ernst & Young estimates each piece of manual HR data entry costs the employer an average of $4.70. Such outdated processes stall operations and stifle growth. Automating them through HR tech decreases data entry, giving small businesses invaluable bandwidth.

Technology is the future of HR

Tech helps HR professionals innovate and engage with their people on a deeper level. It empowers employees to truly own their data. This means an organization has the engaged and focused workforce it needs to overcome tomorrow’s challenges.

Explore Paycom, the one easy-to-use app for HR and payroll, to step into the future of business.

DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.