Four HR leaders weigh in on the ultimate HR tech stack

HR has become far more than a matter of instinct and intuition. The old days of sifting through resumes and filing cabinets have given way to something altogether more complex and tech-driven: the HR tech stack.

It’s no longer just about hiring the right people—today’s HR departments are tasked with managing every aspect of the employee lifecycle, from recruitment to performance management, using a suite of tools.

But here’s the rub: building the right HR tech stack isn't as simple as slapping together a few software solutions. It’s a delicate balance of selecting the right tools, ensuring they integrate seamlessly, and constantly tweaking the system to ensure it remains relevant to your company’s ever-evolving needs.

As Naomi Clarke, Head of HR at Flingster, puts it, “If your ATS doesn’t integrate well with your HR CRM or interview scheduling tools, it leads to a lot of manual work... The lack of integration means you lose that connected experience you’re trying to provide for candidates, and your HR team ends up doing double the work.”

If your ATS doesn’t integrate well with your HR CRM or interview scheduling tools, it leads to a lot of manual work... The lack of integration means you lose that connected experience you’re trying to provide for candidates, and your HR team ends up doing double the work.

In this guide, we’ll take you through the building blocks of an exceptional HR tech stack. By the end, you’ll not only know how to assemble one, but how to optimize it so it becomes a key growth lever.

What is a HR tech stack?

At its core, an HR tech stack is a combination of software tools that work together to manage and automate human resources functions.

Think of it as the digital equivalent of a Swiss Army knife: recruitment, onboarding, performance management, and employee engagement all in one. Each tool performs a specific function, but when combined, they provide a comprehensive solution to help your HR department operate efficiently and effectively.

But this isn’t just about convenience. In today’s competitive job market, an HR tech stack can make or break a company’s ability to attract and retain top talent.

Kevin Shahnazari, founder of FinlyWealth, knows this all too well: “Our past ATS system couldn’t handle bulk and resume uploads... When we received over 400 applications for a software developer role, the system crashed twice, which resulted in the loss of valuable candidate data.” A broken tech stack can send top candidates running in the opposite direction.

So why does this matter? Because your HR tech stack doesn’t just support your HR team—it fundamentally shapes the experience for every potential hire and employee. The better your tools work together, the better your company can perform in a crowded marketplace.

The evolution of the HR tech stack

To understand where we are now, it helps to look back at where HR tech started. Decades ago, the idea of an "HR tech stack" would have been laughable. Back then, HR was a largely manual process: paper resumes, phone interviews, and countless man-hours spent organizing personnel files.

Fast forward to today, and we live in an era where AI recruiting tools sift through thousands of resumes in seconds, flagging the most relevant ones for human review.

Applicant tracking systems (ATS) can post jobs to multiple boards simultaneously and even handle some of the initial candidate outreach. Performance management tools gather data on employee performance and provide analytics to help managers make decisions in real time. We’ve moved from filing cabinets to rocket ships in the span of a few decades.

Yet, for all the advancements, many HR professionals still encounter significant pain points. Linda Moore, Head of HR at Slipintosoft, explains: “Integrating ATS, CRM, and interview tools can present frustrating hurdles. Multilayered processes often lead to information getting ‘lost in transition,’ which ends up hurting the candidate experience.” The very tools that are supposed to streamline the hiring process can often create new layers of complexity if they don’t play nice together.

This brings us to the next critical step in building a strong HR tech stack: ensuring integration and flow between systems.

Components of a winning HR tech stack

Not all HR tech stacks are created equal. Your company’s needs will vary depending on size, industry, and growth trajectory. But at a fundamental level, any HR tech stack should consist of the following key components:

1. Applicant Tracking Systems (ATS)
2. Human Resources Information Systems (HRIS)
3. Performance Management Tools

Let’s break each of these down.

Applicant Tracking Systems (ATS)

The ATS is the cornerstone of your recruitment process. It allows HR teams to manage job postings, sort through applications, and schedule interviews. Yet, as Anna Williams, HR Director at Pretty Moment, points out, even the best ATS can have its shortcomings: “While an ATS helps filter and shortlist candidates, it sometimes inadvertently filters out potential talents due to keyword mismatches.”

There’s a fine balance between relying on technology to streamline recruitment and maintaining the human touch that prevents top talent from falling through the cracks.

An ATS should integrate seamlessly with your other HR tools, ensuring that every step of the candidate journey—from initial application to interview—is captured without a hitch. And yet, as Kevin Shahnazari experienced, even the best systems can falter under high-pressure situations, such as bulk uploads. Choosing the right ATS that fits your company’s size and recruitment needs is crucial.

Human Resources Information Systems (HRIS)

Next, we have HRIS, which manages the entire lifecycle of employee data—from payroll and benefits to compliance and reporting.

Think of your HRIS as the command center for all HR-related operations. It should house all critical employee data in one easily accessible place, reducing the need for manual data entry and minimizing errors.

Yet, integration remains a sticking point. Kevin Shahnazari recounted the challenges he faced at FinlyWealth: “We use Workday for HR, but it doesn’t integrate well with our Lever ATS. This forces our team to manually enter the same data twice, increasing the risk of errors.” In today’s world of interconnected software, manually re-entering data should be a thing of the past—but not all tools have caught up to this reality.

Performance management tools

Performance management tools are often the unsung heroes of the HR tech stack. These systems track employee performance, provide feedback, and help managers set goals. The ideal performance management tool is intuitive and provides real-time insights into how teams are performing.

However, as Naomi Clarke mentioned, overly complicated tools can become a hindrance rather than a help. “A tool may have a lot of features, but if it’s hard to use or the UX is clunky, it becomes more of a burden than a benefit for HR teams,” she says. Keep things simple and user-friendly, especially when it comes to performance tracking.

Customizing your HR tech stack

Your HR tech stack should be as unique as your company. A small startup may not need the same tools as a global corporation, just as a growing company may require systems that can scale quickly. Here are a few steps to consider when building or refining your HR tech stack:

1. Assess Your Current Needs: Start by conducting an audit of your existing tools. What’s working? What’s not? And where are the gaps?
2. Prioritize Must-Have Features: Identify the tools that are absolutely essential for your team. A fancy tool with endless features is worthless if you don’t use them.
3. Budget Wisely: It’s easy to get carried away with shiny new tools, but remember that the goal isn’t to have the most tools—it’s to have the right ones.

Linda Moore advises companies to focus on integration above all else. “If your tools don’t integrate well, you’ll end up spending more time transferring data manually than actually managing people,” she warns. Integration ensures that your systems work together harmoniously, reducing friction for both HR teams and candidates.

How to make your HR tools play nice

Here’s the million-dollar question: how do you make sure your tools integrate seamlessly? In theory, your ATS, HRIS, CRM, and performance management tools should all work together to create a connected experience. In practice, things often fall apart.

As Kevin Shahnazari noted, “The ‘connected candidate experience’ remains a myth. We had a stellar candidate withdraw because she got four automated emails from our ATS, HR CRM, interview scheduler, and onboarding tool in one day. Each system thought it was helping, but they created a disjointed, spammy experience.” When your tools don’t communicate effectively, they can end up doing more harm than good.

So, how do you avoid this? Here are a few tips:

• Choose tools that prioritize integration. Ask vendors about their API capabilities and make sure they offer the necessary flexibility to connect with other systems.
• Test before you buy. Whenever possible, run a small pilot program to see how new tools integrate with your existing tech stack.
• Focus on the user experience. If the system is clunky for your HR team, it will be clunky for your candidates too.

Training and user adoption is critical

It’s tempting to think that once you’ve assembled your HR tech stack, the work is done. But the reality is, the success of your system depends on how well your team understands and uses it. Naomi Clarke puts it bluntly: “A tool is only as good as the person wielding it.”

Training is essential, especially when onboarding new tools. You don’t want your shiny new tech stack to sit there collecting digital dust because no one knows how to use it. And more importantly, you want to ensure that your team feels empowered, not overwhelmed, by the tools at their disposal.

When introducing new software, start with comprehensive training sessions that cover both the basics and advanced features. Make it clear how the tools will improve workflows and why adopting them is crucial to overall success. However, keep checking in. It's not enough to train once and assume everyone is comfortable. Regular refresher sessions and open feedback channels are vital for long-term user adoption.

Anna Williams echoes this sentiment: “You can have the most advanced HR tech stack in the world, but if your team doesn’t know how to use it, it’s not going to do you much good.” The technology is only as effective as its implementation.

Measuring the ROI of your HR tech stack

So, you’ve invested in this tech stack, integrated all your tools, and trained your team. Now comes the next big question: How do you measure its success?

The return on investment (ROI) for your HR tech stack isn't just about cost savings. Yes, automating repetitive tasks can save your team time and reduce expenses, but there are other, less obvious factors to consider. For example:

• Time Saved: How much time is your HR team saving by automating tasks like resume screening or payroll management?
• Improved Candidate Experience: Are candidates moving more smoothly through your pipeline? Are they reporting a more seamless experience from application to offer?
• Reduction in Turnover: Has the implementation of performance management tools led to better employee engagement and retention?

It’s critical to evaluate both qualitative and quantitative metrics. Linda Moore suggests paying close attention to the "seamlessness" of the candidate experience.

After all, a disjointed process can deter top talent from moving forward in your hiring funnel. “If candidates are left feeling like they're dealing with a bureaucratic machine rather than a company that values human connection, your tech stack has failed,” she says.

Remember, a well-constructed HR tech stack goes beyond saving time or money. It’s about fostering a better workplace culture, improving employee satisfaction, and ultimately, driving company growth.

The future of HR tech

The HR tech stack of tomorrow will look very different from what we see today. As technology continues to evolve, we can expect tools to become more sophisticated, more intuitive, and more integrated than ever before.

One of the biggest trends shaping the future of HR tech is the rise of AI and machine learning. These tools have the potential to transform the hiring process by predicting future talent needs, identifying the best candidates faster, and even preventing turnover before it happens.

For instance, AI-powered tools can analyze patterns in employee data to flag when someone may be at risk of leaving, allowing managers to take proactive steps.

But, as Kevin Shahnazari rightly points out, even the most advanced tools need to be carefully chosen and customized to fit a company’s unique workflows. “Our hiring process often demanded parallel tracks—evaluations from multiple departments at once. No tool did this workflow justice,” he said. Flexibility and customization will be critical as companies continue to demand more from their HR tech stacks.

Common HR tech stack pitfalls

Building an effective HR tech stack isn’t without its challenges. From poorly integrated tools to overwhelming interfaces, there are plenty of pitfalls along the way. Here are a few to watch out for—and how to avoid them:

1. Shiny object syndrome: It’s tempting to go for the latest and greatest tools, but just because something is new doesn’t mean it’s necessary. Focus on what your team actually needs, rather than getting distracted by flashy features.
2. Lack of integration: As we’ve mentioned throughout, integration is key. If your tools don’t work well together, you’re going to end up creating more problems than you solve. Always prioritize tools that have strong API capabilities and can seamlessly connect with your existing systems.
3. Ignoring user feedback: Your HR team is the one on the front lines using these tools every day. Make sure you’re listening to their feedback. If a tool isn’t working, don’t be afraid to swap it out for something better.

Linda Moore summed it up best when she said, “The best HR tech stack isn’t the one with the most tools—it’s the one that works for your team.” Keep it simple, keep it integrated, and above all, keep it human.

Conclusion

Building an HR tech stack isn’t something you do once and then forget about. It’s an ongoing process of assessing your company’s needs, integrating the right tools, and constantly refining the system to ensure it’s delivering value.

At the heart of any great HR tech stack is integration. If your tools can’t communicate effectively, you’ll spend more time managing the software than managing people. As Naomi Clarke wisely noted, “The more connected, intuitive, and customizable your tech stack is, the better experience you’ll provide both internally and externally.”

So, what’s next for your company? Whether you’re just starting to build your HR tech stack or looking to upgrade your existing system, remember that the goal is always the same: to create a seamless, efficient process that supports both your HR team and your candidates.

When done right, your HR tech stack will become your company’s greatest asset in the war for talent.

Contributors

• Naomi Clarke, Head of HR, Flingster
• Linda Moore, Head of HR, Slipintosoft
• Anna Williams, HR Director, Pretty Moment
• Kevin Shahnazari, Founder & CEO, FinlyWealth