Human Resource Technology: Importance and Benefits

For years, Human Resources has been held back by manual processing. HR Tech is the ultimate solution for industries of today

HR tech has developed massively in recent years. Several employers around the world recognize core automation systems from enterprise software companies such as Oracle and SAP, as well as specialized HR specialist vendors. Many employers are entering the second generation of Human Resource transformation by migrating from their manual systems to cloud platforms, including SaaS. 

On the other hand, small and mid-sized employers are moving in large numbers to digitize their HR functions. Turning to SaaS platforms or cloud-based outsourcing vendors for payroll services and recruitment is now a common practice. 

HR Tech: An Essential Resource?

Modern technology automates everyday human resource management operations. It also frees up time for HR professionals to focus on their job’s strategic and creative tasks. The digitized systems can help reduce administrative time, open up headhunting options, and assist with onboarding. They speed up information dissemination among team members, improve security and automate payroll processing, among other benefits.

Role In Hiring

Technology changes how companies hire. Making the process astute, efficient and effective. Many companies take months to find their ideal candidate. In addition to being more time-consuming, the talent search is far more costly.

HR expenses are increasing due to overspending by settling for a candidate who is not as qualified. The worrying factor here is that when the hiring process is long for applicants, they may lose interest and choose to pursue other opportunities. These questions put the organization’s ability to make crucial decisions.

Technology offers solutions to cut down on hiring time by significantly reducing the length of the recruiting process from weeks or even months down to days and hours. In fact, 94% of recruiters and hiring professionals say that using recruitment software has positively impacted their hiring process.

Source: Entrepreneur

How Big is the HR Tech Market?

The Human Resource (HR) Technology Market size was valued at $23.32 billion in 2021. The numbers are going to crunch up to a ridiculous amount shortly. Projected figures are estimating the figure to reach $38.36 billion by 2030. The past few years have been a roller coaster in terms of growth for the industry. While the sudden economic crisis hampered this during the pandemic, the potential of technology within the People Operations industry is huge. 

With AI and machine learning ready to overtake manual processing, it’s just a matter of time before we see companies, both big and small, automate recruitment as well. 

Things to Consider Before Investing In HR Tech


Price might not be everything but it plays an important part for the customers. Vendors take different approaches to pricing.. Many of them charge a flat per-user, per-month fee. Most vendors don’t always classify users in the same way. But others charge based on a company’s total number of employees. Employees who’ll be covered by the system. Still other vendors only charge for the HR staff who’ll use the system. This is very common in recruiting software. 

Demos and Trial Accounts

Just like you wouldn’t buy shoes without trying them on, an HR management platform can cost a lot more than a new pair of Nikes. Demos are good for getting a taste of what a program can offer. A healthy portion of cloud-based HR tech for small to midsize businesses (SMBs) offer limited-time free trials. Many allow users to convert a trial account to a paid one so you can save any data you input during the try-out period. Vendors such as Deputy and Humanity have sandbox accounts designed for specific types of businesses. So you can see how companies like yours could use their platforms.


Nobody buys a car if you knew the manufacturer was planning a head-to-toe redesign of that next year. By the same logic, you might not sign up for a software platform if there were stories that the developer was about to undertake a major overhaul. It’s hard enough investing in HR tech and getting employees up to speed on a new platform, let alone convincing consumers to purchase a new UI. Use your vetting process to find out if a vendor has changes in the works. Take that information in your decision-making process. Even if a developer doesn’t have big changes planned, find out how frequently they intend to shift the platform’s tech. 

Employee Files

Unless you’re a start-up, you’ve probably got personnel data stored somewhere, even if it’s just in Microsoft Excel or Google Drive. In most cases, uploading the data to a new vendor’s platform will be easier and faster than re-keying employee data or having employees sign in and fill out profiles themselves (unless your existing data is pretty dirty).

A lot of HR platforms for small businesses I’ve reviewed have built-in functions for importing data from Microsoft Excel and other formats that cost nothing extra to use. It’s a little more complicated for midsize and larger companies; if you’ve got hundreds or thousands of employees, you may end up paying a fee for a vendor to upload existing employee data for you. Sometimes that information appears on the pricing page of a vendor’s website and sometimes it doesn’t, so be sure to ask.

Is Technology The Future Of Human Resources?

When embarking on digital transformation, most organizations define their goals. Similarly, for the evolution of its HR function, organizations must define their objectives and implement the use of technology in their operations to have the right impact on employees to succeed. This is particularly important when the business environment is dynamic with a rapidly changing workforce and evolving expectations and motivations. So yes, to compete globally and exude convenience in workplaces, technology is the new face of HR. 

We hope this article helped you understand why technology is an important jigsaw for the Human Resource department. Feel free to reach out to us if you have any queries regarding the impact of HR Tech on the industry nowadays. 

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