HR Technology

What is HR Technology?

Human resources (HR) technology is defined as software and hardware used for the purpose of automating and streamlining essential HR processes. HR technology is a broader term for the various digitized operations necessary in maintaining the regulatory framework of human capital in any given organization. 

Human resources technology consists of different programs designed for specific HR purposes, including:

The optimal implementation of HR technology is achieved when combining and synchronizing software unique to the needs of an organization’s HR department.

What is HRIS?

A human resources information system (HRIS) is the digital apparatus responsible for the collection and management of data within HR operations.

Using collaborative software to synchronize, automate, and relegate information in accordance with company practice, a centralized system of records is essential in avoiding information silos and provides a foundation for logistical decision-making.

Human resources information systems underpin productive processes through the efficient analysis and oversight of digital documentation.

What is HCM?

Human capital management (HCM) is the implementation of people management practices extending beyond the core administrative capabilities of traditional HR services. HCM aims to incentivize employees and drive workplace productivity through the use of motivational procedures that extend beyond HRIS frameworks.

HCM recognizes the workforce as a valued asset that focuses on strategic people processes and individualized investment through the logistical application of modern technology.

What is HRMS?

A human resources management system (HRMS) is the administrative software responsible for synchronizing and combining singular HR systems into a centralized data repository. By analyzing and optimizing essential HR functions, HRMSs automated processes streamline the collection and transfer of data, increase productivity, and prevent disruptions to the flow of work.


Both HRISs and HRMSs are at the core of every HR operation and share similar automated capabilities in that they compile and combine data for easy user accessibility. Human resource information management (HRIS) specializes in the storage and synchronization of administrative logistical data, such as compliance, payroll, policy, and workforce management.

Human resource management systems, however, utilize the existing tools of HRIS and HCM but monitor and assess workforce productivity, with an added focus on labor and performance management.

Human capital management (HCM) incorporates all the tools of HRIS and HRMS and provides a more diverse and strategic analysis of workforce management which includes cultivating developing talent, observing employee life cycles, and simplifying recruitment procedures.

HR Technology Examples

Adapting to the latest technological changes ensures the smooth running of human resources operations. This is enabled through the implementation of automated software and management programs that assess and compile data for user-friendly accessibility. 

A successful HR department knows how to harness the benefits of technological assistance, integrating the best collaborative software specifically suited for the given objective. Some examples of the types of HR technology are:

1. Core HR Technology

The assessment and storage of all essential administrative data. For example, inventory management, payroll, time and attendance, benefits administration, basic employee data and analytics, and employee communications.

2. Talent Management Technology

This differs from core HR technology in its focus on employee responsibility, acquisition, and disposition. The objective of talent management technology is to provide a digital framework that supports and monitors employee development. 

An example of these technologies is talent acquisition software which can be defined by the exact technology needed to identify, recruit, and settle a new employee. 

HR Technology Strategy

HR technology strategy is a set of practices that consider the trajectory and strategic objectives most important in maximizing prospective value within HR departments and the wider organization

Beyond the value of logistics and efficiency being a motivating factor in the adoption of HR technology strategy, organizations are recommended to consider future coordination. It’s vital to remain agile and adapt to unforeseen industry changes that are pivotal in ensuring the success of a well-rounded strategic aim. 

The HR department, in collaboration with the IT department, is responsible for leveraging the best of available technologies that help facilitate strategic operations and prospective planning. HR should apply their understanding of intimate people management into the wider strategy and provide trusted solutions for any unforeseen business problems.

HR Technology Companies

HR Technology is ever-evolving. The requirement for optimal people management software is increasingly necessary across all industries. Talent management and acquisition can be difficult in post-pandemic life with the nature of remote work creating an impersonal relationship between HR and potential talent.

It’s up to professionals in the field of HR technology to come up with solutions for problems in a rapidly changing work life. 

The Software Report released their list of the top 25 HR Software Companies of 2021. The top three companies are: 

First Advantage

Serving over 35,000 organizations, the technological solutions provided by First Advantage utilize their expertise in verifications, safety, screening, acquisition, and management to successfully mitigate risks for their global client base.


With 75 million users, Cornerstone’s people development solutions include comprehensive recruiting software, a personalized learning platform, modern training content, development-driven performance management, and holistic employee data management and insights.


iCIMS encourages businesses to seek, entice, hire and support the right talent with their cloud-based technologies. Leading the way with their talent acquisition services, 2.4 million global users benefit from iCIMS’ software resources—including 40% of the Fortune 100.

What is New in HR Technology

As industry trends evolve, HR sectors must adapt to the rapid technological changes required of them to remain competitive. Innovations to technology have become commonplace and HR is encouraged to be at the forefront of these changes in order to maintain relevance. 

How is HR Technology Connected to Digital Transformation?

HR digital transformation initiatives are delivering the automated transition of HR processes and offer streamlined data-driven alternatives to traditional systems. It’s a dual process that transforms both the workforce and the culture of work at the same time. 

AI is transforming the way that HR processes operate in the 21st century. For example, dedicated platforms that allow for a fully customizable digital learning experience are being implemented by technology frontrunners such as IBM, who are leading the way in digital HR solutions. 


The adoption of digital transformation initiatives is changing the way that HR departments operate and facilitate best working practices. The rise in automation and integrated software solutions will continue to provide HR departments and technology companies with the chance to deliver sustained development through the utilization of strategies that embrace technology and innovation. 

Updated: December 19, 2022

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