2022 09 09 - The State of Todays HR Tech Stack - 2022 23 - ResearchReport - HRcom - UKG

The State of Today's Build and use an
HR Tech Stack that helps

HR Tech Stack 2022-23 HR processes thrive
SEPTEMBER 2022
Sponsored by
www.hr.com | 877-472-6648
CONTENTS
3 Executive Summary
8 Defining the HR Tech Stack
9 The Status of Today’s HR Tech Stack
17 The HR Tech Stack’s Impact on Productivity and Experience
20 Strategic Alignment of HR Tech Stack
23 HR Tech Stack Infrastructure Issues
33 The Future of the HR Technology Stack
38 How HR Tech-Stack Leaders Differ from Laggards
47 Key Takeaways
2 The State of Today's HR Tech Stack 2022-23 www.hr.com | 877-472-6648 | copyright © HR.com 2022
About the Survey Executive Summary
The State of Today's HR Tech
Businesses today are operating in a “VUCA” (volatile, uncertain,
Stack 2022-23 survey ran in
July 2022. We gathered 210 complex and ambiguous) environment.1 This has placed
responses from HR professionals considerable demands on organizations and has come with a
in virtually every industry vertical. shift in employees’ attitudes regarding how, when and what work
Respondents are located all over is done.
the world, but most of them reside
in North America, especially the
Not only are employees reluctant to go back to traditional office
United States.
spaces with their fixed timings and constricted policies, but they
The participants represent a broad are also now aware of global opportunities that can be taken
cross section of employers by advantage of from nearly anywhere.2
number of employees, ranging
from small businesses with fewer
Many organizations now have the chance to maximize the
than 50 employees to enterprises
with 20,000+ employees.
productivity of their globally dispersed workforce while providing
employees with a positive work environment focused on their
Questions for the survey were
well-being.
guided by an independent
advisory board of HR tech stack
experts who we thank for their
In this environment, technology has become indispensable. It
invaluable insights. has enabled organizations to connect with employees working
in remote locations, provide them with the required support to
conduct their work, and effectively manage them. These trends
also allow some organizations to collect even more information
on how employees perform, feel, communicate and behave.
An organization’s HR tech stack represents an organization’s

totality of technological solutions that HR uses to achieve its
strategic goals, fulfill its various roles, deliver key services to
employees and carry out its tasks in easier, better and more
efficient ways.
1 Wörle, D. (2022, February 27). Vuca World – what it stands for & how to thrive in it? Digital Leadership. Retrieved from https://digitalleadership.com/
blog/vuca-world/
2 Chamorro-Premuzic, T. (2021, September 2). Why are so many people reluctant to return to the office? Forbes. Retrieved from https://www.forbes.
com/sites/tomaspremuzic/2021/09/02/why-are-so-many-people-reluctant-to-return-to-the-office/?sh=3d9b9d9014f8
Hence, more organizations today are interested in the HR tech stack and
how it may be leveraged to meet their organizational objectives. This
report explores various topics related to the HR tech stack such as:
●● the most commonly included capabilities

●● various issues, challenges and pain points
●● strategic alignment of the HR tech stack with business objectives
●● impact on key business outcomes
●● how the HR tech stack is likely to change in the future
●● how organizations with a higher versus lower quality HR tech stack
differ
Below is an overview of the top findings from the study:
Major
Finding 1 The HR tech stack today includes a number of capabilities and are
designed to address various goals:
●● The most commonly included capabilities in HR tech stacks are:
payroll (79%)
benefits administration (70%)
recruitment/talent acquisition (67%)
onboarding (67%)
●● The most common issues that organizations are trying to address

with their HR tech stack are:
providing useful people data and analytics (61%)

enhancing process automation (61%)
enhancing employee experience (60%)
providing employee self service (60%)
Major
Finding 2 Many organizations’ HR tech stack suffer from poor strategic alignment,
poorly communicated future-looking strategies and the lack of a clear
future vision.
●● Just 40% say that their organization is good at implementing HR tech

stack systems that are well aligned with critical business objectives.
●● Just 45% say that the head of HR has articulated a clear vision for
the future of their organization's HR tech stack to their direct reports.
●● Just 49% say that HR managers are aware of a well-defined strategy

for improving the HR tech stack over the next two years.
Major
Finding 3 Lack of integration of HR tech stack solutions is a barrier to attaining
business goals.
●● Just 29% say the components of their HR tech stack usefully

integrate with one another well or extremely well.
●● About the same proportion (27%) say the components integrate

poorly or very poorly. And, of these respondents, a majority say that
the lack of integration is a barrier for organizations from attaining
business goals (89%).
●● Just 43% say their HR tech stack produces people analytics that are
accurate while 36% say they are actionable and 38% say they are
meaningful.
●● Reconfiguring the HR tech stack is challenging with almost half

saying it is very difficult (7%) or difficult (40%).
Major
Finding 4 HR tech stacks suffer from a number of pain points and problems.
●● The most commonly cited pain points include:
difficulty getting accurate and useful information (41%)

not enough of the solutions or features we need (40%)
not enough in-house technical expertise (36%)
●● The most common problems are:
not leveraging or utilizing all the stack’s capabilities (50%)

systems are not well integrated and/or cannot be integrated (39%)
systems do not allow enough customization (32%)
Major
Finding 5 Despite some deficiencies, today’s HR tech stack does help in
many organizational areas, though there remains much room for
improvement overall.
●● Just half say their HR tech stack supports their organization’s key
business goals and strategies well (39%) or extremely well (10%).
●● Over half agree or strongly agree their HR tech stack measurably

improves the employee experience (54%) and organizational
efficiency/productivity (57%).
●● Three-fifths (62%) agree or strongly agree that their HR tech stack

improves HR’s efficiency/productivity.
●● Although 67% of respondents say their organizations have

increased investment in their HR tech stack over the last two years,
HR professionals are more likely to agree that their tech stack
supports on-site workers (74%) rather than employees working
remotely (67%).
Major
Finding 6 Over the next two years, HR tech stack improvements will often focus
on employee experience.
●● Issues that will be important to the success of organizations over

the next two years include:
enhancing employee experience (64%)

enhancing process automation (61%)
providing useful people data and analytics (56%)
●● Over the next two years, respondents say their HR tech stack is
expected to:
improve employee user experience (58%)

increase employee self service (45%)
provide higher quality data (45%)
●● Organizations are most likely to focus on better training of users

(55%) as a non-technological method to improve their HR tech
stack.
Major
Finding 7 HR tech stack leaders have more strategically aligned, well-funded
solutions with better capabilities. When compared with HR tech-stack
laggards, they are:
●● more likely to say their organization is good at implementing

systems that are well-aligned with critical business objectives
●● more likely to say the head of HR has articulated a clear vision for
the future of HR tech stack to direct reports
●● more likely to say the HR managers are aware of a well-defined

strategy for improving HR tech stack over the next two years
●● three time as likely to have increased investment in their

organization’s HR tech stack over the past two years
●● more likely to say the components of their HR tech stack integrate

well or very well together
●● more likely say their HR tech stack improves HR’s efficiency/

productivity, organization's efficiency/productivity and employee
experience
Defining the HR Tech Stack
Within the context of the survey, we provided survey respondents with
the following definition:
The Human Resources Technology Stack (aka, HR tech stack)

represents an organization's totality of technological solutions
that HR uses to achieve its strategic goals, fulfill its various roles,
and carry out its tasks in easier, better and more efficient ways.
Non-HR stakeholders (e.g., employees and contract labor) may
also use portions of the HR tech stack to meet various needs,
from self-service applications to learning and development (L&D).
Components of the HR tech stack may include modules in a larger
suite and/or point solutions that are stand-alone or integrated with
other HR technologies. The HR tech stack can also be integrated
with other business applications or platforms that are not HR-
focused, such as business-process modules in an enterprise
resource planning system (ERP).
The Status of Today’s HR Tech Stack
Finding: Payroll is the most commonly
included capability in today’s HR tech stack
One of the major utilities of any given HR tech stack is to increase HR
efficiency through streamlining and automating core HR functions. To
find out the extent that these core functions are included in the HR tech
stack, we asked respondents which capabilities are included. Payroll
(79%) and benefits administration (70%) are the topmost widely cited
capabilities, as they are two of the most important functions in an
organization. Recruitment/talent acquisition (67%) and onboarding (67%)
follow closely.
Larger versus smaller organizations

Larger organizations are more likely to have capabilities related to
performance management (84%) in their HR tech stack than mid-size
(59%) and small organizations (37%). Similar differences are observed
with regards to capabilities related to learning and development and
succession planning/management.
Defining Small, Mid-sized and Large Organizations
For the purpose of this report, large organizations have

1,000 or more employees, mid-sized organizations have
100 to 999 employees, and small organizations have 99 or
fewer employees.
Survey Question: Which of the following capabilities are
included in your organization's HR tech stack?
(select all that apply)
Payroll 79%
Benefits administration 70%
Recruitment/talent acquisition 67%
Onboarding 67%
Learning and development 60%
Performance management 59%
About half (47%) Workforce management

48%
(e.g., scheduling, attendance)
of organizations
include employee
Employee experience 47%
experience
capabilities in their
Total rewards 28%
HR tech stack
Succession planning/management 27%
0 10 20 30 40 50 60 70 80
Finding: Most respondents are looking to
enhance process automation with their
organization’s HR tech stack
We asked respondents to select the issues that organizations are trying
to address with their HR tech stack. Four responses are selected by
about the same proportion of respondents:
●● enhance process automation (61%)
●● provide useful people data and analytics (61%)
●● provide employee self service (60%)
●● enhance employee experience (60%)
The top four responses are connected. People data and analytics provide
organizations with a means to make data driven decisions and evaluate
the effectiveness of HR interventions and policies. Further, in this age
of high demand for talent3, employee experience is essential in
attracting, hiring and retaining employees. Process automations and
employee self-service can allow organizations to improve efficiency
in these crucial areas.
Despite increasing focus on DEI and fairness in recent years, increasing

diversity and inclusion (29%) and increasing pay equity (21%) are
featured at the bottom of the list. This is a potential area of improvement
since an HR tech stack can help remedy DEI and pay inequity issues by
collecting data for gap analyses.
3
U.S. Bureau of Labor Statistics. (2022). Employment situation summary - 2022 M07 results. U.S. Bureau of Labor Statistics. Retrieved from
https://www.bls.gov/news.release/empsit.nr0.htm
Survey Question: What issues are you trying to address with
your organization's HR tech stack?
Enhance process automation 61%
Provide useful people data and analytics 61%
Enhance employee experience 60%
Provide employee self service 60%
Integrate talent management solutions 44%
Career pathing and mapping 43%
Allow mobile access 43%
Reinforce the desired corporate culture 37%
Advance key performance indicators (KPIs) 35%
Skills and/or personality assessments 34%
Increase diversity and inclusion 29%
Identify high potentials 26%
Increase pay equity 21%
Facilitate internal referrals 19%
0 10 20 30 40 50 60 70 80
Just 26% are using their HR tech

stack to identify high potentials
Finding: About half say their HR tech stack
supports organization’s key business goals
and strategies, but only 10% say it does so
extremely well
We believe that the purpose of any HR tech stack is to support the
organization’s key business goals and strategies. When choosing the
components of an HR tech stack, employers should consider the long-
term goals of the organization and how technology can be used and
adapted to streamline processes to achieve these goals.
It turns out, however, that there is much room for improvement when
it comes to supporting key goals and strategies. In fact, just 49% of
respondents say their HR tech stack supports their organization’s
business goals and strategies well (39%) or extremely well (10%).
Survey Question: How well does your HR tech stack support

your organization's key business goals and strategies?
Fifteen percent
say their HR tech
stack supports
4% 11% 36% 39% 10%
organization’s key
business goals and
0 20 40 60 80 100
strategies poorly or
Very poorly Poorly Moderately Well Extremely well
very poorly
Finding: Two-thirds (67%) say investment
in their organization’s HR tech stack has
increased
More than a quarter (27%) say investment in their HR stack has
increased a lot over the past two years, and a further two-fifths say
investment has increased a little. Just 7% say investment in their HR
stack has decreased.
Rising investments in HR tech stacks indicate that organizations view

these technologies as increasingly worthwhile. In addition, the recent
prominence of remote work has likely driven an increase in investments
in tech-based HR solutions.
Survey Question: Over the past two years, how has investment
in your organization's HR tech stack changed?
3%
Just 7% say
investment in their
organization’s HR
4% 26% 40% 27%
tech stack has
decreased
0 20 40 60 80 100
Decreased a lot Decreased a little Stayed the same

Increased a little Increased a lot
Finding: Most organizations have two or
more solutions in their HR tech stack
Today’s organizations have a rich array of choices when it comes to HR
technology solutions. We asked respondents how many solutions from
different providers are present in their HR tech stack. For the purpose of
this survey, we defined multiple solutions as solutions that are purchased
from different vendors. For example, an HRIS with multiple modules
purchased from a single provider would count as one, but an ATS and
LMS from different providers would count as two. While using multiple
solutions can help meet a variety of HR needs, it can be challenging due
to integration related issues.
Three-fifths say their organization uses 2 to 4 paid solutions from

different providers and 23% use 5 or more. Logically, larger organizations
are more likely to use a use greater number of HR solutions when
compared to small and mid-size organizations; 23% of larger
organizations use 8 or more HR solutions.
The choice of which HR solutions to use while building an HR tech stack

depends on many factors, such as the size of the organization, purpose
of the tech stack and integration of the various solutions among other
factors. Therefore, there is no one “right” number of solutions.
Survey Question: How many paid HR solutions from different
providers are included in your organization's HR tech stack?
One in ten use 8 11 or more 5%

or more paid HR
solutions in their
HR tech stack 8 to 10 5%
5 to 7 13%
2 to 4 60%
1 17%
0 10 20 30 40 50 60
The HR Tech Stack’s Impact on
Productivity and Experience
Finding: Sixty-two percent agree or
strongly agree their organization’s HR tech
stack increases/improves organizational
efficiency/productivity
Many organizations look to their HR tech stack to enhance the
employee experience, organizational efficiency/productivity and HR’s
efficiency/productivity. The HR tech stack can be used to automate,
simplify and digitize operations also while enabling collaboration so
that organizations are better able to achieve these goals. Technology
also enables organizations to collect data points regarding employee
experience that can be utilized to identify pain points and areas of
improvement.
Over half agree or strongly agree that their HR tech stack improves the
employee experience (54%) and organizational efficiency/productivity
(57%), and 62% say it improves HR’s efficiency/productivity.
However, we view it as concerning that 22% actively disagree that

their HR tech stack measurably increases/improves the employee
experience, 18% disagree that it improves organizational efficiency/
productivity, and 16% disagree that it boosts HR’s efficiency/
productivity. We think this is likely the result of poor selection,
implementation and/or integration.
Survey Statement: Your organization's HR tech stack solutions
measurably increase/improve:
The employee experience 6% 15% 25% 43% 11%
Organizational efficiency/productivity 4% 14% 26% 49% 8%
HR’s efficiency/productivity 5% 11% 22% 53% 9%
0 20 40 60 80 100
Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree
Just 8% strongly agree that HR tech stack increases/

improves organizational efficiency/productivity
Finding: Just one-fifth strongly agree that
their HR tech stack supports the needs of
employees and other stakeholders who
work on-site or remotely
Remote work is here to stay. Even with the return to office, most
organizations will continue offering flexible work arrangements.4 So,
the HR tech stack must support employees who work on-site as well as
those who engage in remote work. These technologies must maximize
ease of collaboration, productivity and provide a consumer-grade
experience to employees.
While 74% say their HR tech stack is good at supporting the needs
of employees who work on-site, just 22% strongly agree. Further, just
24% strongly agree that their organization’s HR tech stack is good at
supporting the needs of those who work remotely, signaling that there
is potential for improvement. Indeed, the HR tech stack is still better at
supporting the needs of on-site workers as opposed to remote workers.
Survey Statement: Your organization's HR tech stack is

good at supporting the needs of employees and other
stakeholders who:
Work on-site 52% 22% 74%
Work remotely 43% 24% 67%
0 10 20 30 40 50 60 70 80
Agree Strongly agree
4
Jackson, A. (2022, March 17). The demand for flexible work 'will only accelerate' in coming years as workers feel more empowered. CNBC. Retrieved
from https://www.cnbc.com/2022/03/17/the-demand-for-flexible-work-will-only-accelerate-in-coming-years.html
Strategic Alignment of the HR Tech Stack
Finding: Just 13% strongly agree that the
head of HR has articulated a clear vision for
the future of their organization's HR tech
stack to their direct reports
With the availability of numerous HR tech solutions in the market,
choosing the right HR tech stack can often be confusing and
overwhelming. A successful HR tech stack facilitates the long-term
goals and strategies of the organization. That’s why it is important for HR
leaders to articulate a clear vision of the future of the organization's HR
tech stack to their direct reports. Without such a vision, the selection and
implementation of HR technologies will tend to be ad hoc and much less
effective than they might otherwise be.
However, less than half (45%) agree or strongly agree that the head of
HR has articulated a clear vision for the future of organization’s HR tech
stack to their direct reports. In fact, 21% disagree or strongly disagree
with this statement.
Survey Statement: Your head of HR (e.g., CHRO) has

articulated a clear vision for the future of your organization's
HR tech stack to their direct reports.
5% 16% 35% 33% 12%
0 20 40 60 80 100
Strongly disagree Disagree Neither agree nor disagree

Finding: Just 12% strongly agree that HR
managers are aware of a well-defined
strategy for improving the HR tech stack
over the next two years
Just under half agree (37%) or strongly agree (12%) that HR managers in
their organization are aware of a well-defined strategy for improving their
HR tech stack over the next two years. When HR managers are made
aware of such strategies, they become more likely to advocate for and
use technologies properly. If the IT department makes all the technology-
related decisions for HR, there could be huge mismatch between HR’s
needs and solutions. Further, if the head of HR hasn’t articulated a clear
vision for the future of the organization’s HR tech stack, then this can
compound these difficulties.
Survey Statement: Your HR managers are aware of a well-

defined strategy for improving the HR tech stack over the next
two years.
7% 19% 25% 37% 12%
0 20 40 60 80 100

Finding: Just two-fifths agree or strongly
agree that their organization is good at
implementing HR tech stack systems
so that they are well aligned with critical
business objectives
HR solutions that are not aligned with critical business objectives may
not yield gains in the long term. Just 13% strongly agree that their
organization is good at implementing HR tech stack systems so they are
well aligned with critical business objectives. A further 27% agree.
However, 30% actively disagree with this statement. To be successful

at implementations, communication between HR and IT could be
the answer. What goes on behind the curtain can have serious
consequences for the efficacy of the HR tech stack. If this partnership
isn’t successful, HR may feel the system is working for them, but from
the employee’s point of view it may be a deterrent to productivity or
engagement.
Survey Statement: Your organization is good at implementing

HR tech stack systems that are well aligned with critical
Thirty percent actively business objectives.
disagree that their
organization is good
at implementing HR 10% 20% 30% 27% 13%
tech stack systems
that are well aligned
with critical business 0 20 40 60 80 100
objectives
HR Tech Stack Infrastructure Issues
Finding: Just one in ten say their HR tech
stack components integrate extremely well
with one another
An HR tech stack is primarily used to automate and streamline HR
processes. This requires seamless integration of the various HR
solutions. Integration of the various components of the organization’s
HR tech stack is crucial because if solutions aren’t talking to each other
properly, organizations run the risk of data silos, which can lead to loss
of efficiency and potentially inaccurate or conflicting data.
Just 11% say integration of various components of their HR tech stack

is done extremely well and 18% say it is done well. A further 46% say
integration is moderately well.
That leaves more than a quarter (27%) who say the components of their
organization’s HR tech stack integrate poorly or very poorly.
Survey Question: Overall, how well do the various components

of your organization's HR tech stack usefully integrate with
one another?
More than a
quarter say the
components of their
organization’s HR 9% 18% 46% 18% 11%
tech stack usefully
integrate with one
another poorly or
very poorly 0 20 40 60 80 100
Very poorly Poorly Moderately

Well Extremely well
Finding: Lack of useful integration of HR
components is a big challenge to attaining
HR goals
Of those who said the various components of their organization’s HR
tech stack usefully integrate with one another moderately, poorly or very
poorly, a majority (89%) said that the relative lack of useful integration of
HR components is keeping their organization from attaining important
HR goals.
Since integration is imperative for a seamless user experience and

protection of sensitive information, a lack of useful integration can be a
major hindrance to achieving HR goals.

The larger the organization, the more likely they are to have challenges
related to useful integration of HR components. Larger organizations
(63%) are more likely than mid-size (41%) and small (15%) organizations
to say “yes, a lot” when asked if the lack of useful integration of HR
components keeps their organization from attaining important HR goals.
Survey Question: Is the relative lack of useful integration of

HR components keeping your organization from attaining
important HR goals?
Yes, a lot 40%
Yes, a little 49%
No 11%
0 10 20 30 40 50
Finding: Respondents give their
organization’s HR tech stack a lukewarm
rating on metrics and analytics
People analytics presents a wonderful opportunity to make data driven,
insightful decisions regarding employees. However, analytics that are
inaccurate provide erroneous and meaningless information which could
lead to errors in decision making. People analytics requires data to be
accurate, actionable and meaningful. However, about two-fifths (43%)
say their HR tech stack produces people analytics that are accurate to a
high or very high degree, and about one-third say that they are actionable
(36%) and meaningful (38%) to a high or very high degree.
What is more concerning is that one-fifth of respondents actively

disagree that their HR tech stack produces people analytics that are
actionable (22%) and meaningful (22%) and 15% disagree that they are
accurate. This means that a considerable proportion of respondents feel
people analytics from their HR tech stack is essentially unusable.
With a lot of organizations looking to make predictive decisions

regarding employees based on people analytics, this is a crucial area of
improvement. Further, some problems with analytics may be related to
the integration problems previously discussed. Unless systems can be
well integrated, data integration also becomes problematic.
Survey Statement: To what degree does your HR tech stack
produce people analytics that are:
Meaningful 6% 16% 40% 27% 11%
Actionable 6% 16% 41% 27% 9%
Accurate 5% 10% 42% 31% 12%
0 20 40 60 80 100
Very low Low Moderate High Very high
Few say their HR tech stack produces accurate, actionable,

and meaningful analytics to a very high degree
Finding: Reconfiguring an HR tech stack
presents a considerable challenge
An HR tech stack often needs to be reconfigured with changing business
and workforce needs so an organization can be agile in today’s dynamic
work environment. However, less than a quarter (23%) say it is easy or
very easy to reconfigure their HR tech stack when needed. Worryingly,
about twice as many (47%) say it is difficult or very difficult to do this.

Reconfiguring the HR tech stack presents a greater challenge for larger
organizations than mid-size and smaller organizations. Just one-third
(33%) of smaller organizations say reconfiguring the HR tech stack is
difficult or very difficult. By comparison 53% of mid-size organizations
and 58% of large organizations say the same. Reconfiguring could
become more complicated with increasing size of organization owing
to the greater number of HR tech solutions involved and the scale of
change that is to be made.
Survey Question: How hard is it to substantially reconfigure

your current HR tech stack when needed?
Just 5% say it
is very easy to 7% 40% 30% 18% 5%
substantially
reconfigure their
current HR tech 0 20 40 60 80 100
stack Very difficult Difficult Neither difficult nor easy

Easy Very easy
Finding: Difficulty getting accurate and
useful data is the most cited pain point of
today's HR tech stack
We asked respondents what their biggest pain points with regards to
their current HR tech stack were. While nearly all (89%) have at least one
pain point, no pain point was selected by a majority.
Difficulty getting accurate and useful data/information is the number

one pain point (41%). Accuracy of data is essential for making data-
based decisions so it is imperative for organizations to create a strategy
for data collection and management. And, as we found previously, few
believe their HR tech stack provides accurate, actionable or meaningful
people analytics.
Two-fifths of respondents say that their HR tech stack does not have
enough of the solutions or features they need. This again indicates a
mismatch between the organizational objectives, goals and strategy with
the solutions of the HR tech stack. This is often not a question of how
many solutions an organization has, but if the solutions are a good fit
with the business objectives and needs of the organizations.
A close third is that their HR tech stack does not have enough in-house
technical expertise (36%). HR professionals today need to accentuate
their functional knowledge with technical expertise. This requires a
know-how of various HR tech solutions and an ability to choose the right
technology.
Confusing/frustrating self-service options (30%) and poor

implementation/execution were also cited to be pain points by about
one third of respondents (32%). This may be a result of incompatible
technologies and poor integration. With most employees working
remotely, self-service becomes a necessity. This has the potential to
impact employee experience to a great degree.
Survey Question: What are your organization's biggest pain
points in regard to your current HR tech stack?
Difficulty getting accurate and

useful data/information out
41%
Not enough of the solutions

or features we need
40%
Not enough in-house

technical expertise
36%
Poor implementation/execution 32%
Confusing and/or frustrating

self-service options
30%
Out-of-date functionalities 27%
Ongoing administration costs 25%
Too many competing

solutions/components
25%
About one-fifth say
their current HR
Poor planning so tech stack does
tech stack does not not match business needs
22%
match business
needs due to poor
planning Lack of remote service or access 9%
We do not have any pain points 11%
0 10 20 30 40 50
Finding: Three-quarters of respondents say
their HR tech stack needs people analytics
Respondents who said their biggest pain points in regard to their HR tech
stack was that it does not have enough of the solutions or features that
their organization needs were also asked which other solutions/features
they needed. Three-quarters say they need people analytics while other
top options include engagement (61%) and onboarding (60%).
Survey Question: You noted that your HR tech stack does

not have enough of the solutions or features that your
organization needs. What other solutions/features are
needed? (select all that apply)
People analytics 75%
Engagement 61%
Onboarding 60%
Performance management 58%
Learning and development 53%
Compensation management 46%
Recruitment 41%
Benefits 34%
Payroll 24%
Other 15%
0 10 20 30 40 50 60 70 80
Finding: The most commonly cited HR tech
stack problem is that the organization is
not leveraging or utilizing all the stack’s
capabilities
Nearly all (90%) of respondents also face problems with their HR tech
stack. When asked about the problems organizations face with regards
to their HR tech stack, half of respondents say they are not leveraging
or utilizing all the stack’s capabilities. This could be due to a mismatch
with business needs or a lack of technical expertise needed to utilize the
stack’s capabilities.
The next top problem cited by almost two-fifth of respondents (39%) was
that systems are not well integrated and/or cannot be integrated. About
a third say (32%) their systems do not allow enough customization and
more than a quarter (26%) say they don’t get enough support from IT
department.
Survey Question: Which of the following problems does your
organization face in regard to your HR tech stack?
We are not leveraging or utilizing

50%
all the stack's capabilities
Systems are not well integrated

and/or cannot be integrated
39%
Systems do not allow

enough customization
32%
We don't get enough support

from our IT department
26%
We over-rely on internal
teams for implementations
21%
It is not aligned with organizational

business strategy and/or goals
20%
We seldom budget enough for

19%
maintenance and upgrades
We seldom budget enough

18%
for integrations
Systems seldom get

18%
implemented according to plan
We over-rely on external consulting

firms for implementations
16%
Projects often come in late

and over budget
14%
We do not face any problems 10%
0 10 20 30 40 50
Nearly one-fifth say they seldom budget

enough for maintenance and upgrades
The Future of the HR Technology Stack
Finding: The majority of organizations are
expected to increase investments in their
HR tech stack
Over the next two years, most organizations are expected to increase
investment in their HR tech stack with 22% saying such investments will
increase a lot and 50% saying it will increase a little.
While an increase in HR tech stack investment is understandable due

to the changing business landscape, a decrease may indicate that
organizations are anticipating a lesser utilization of their HR tech stack
due to return of employees to the office, or a shrinkage in their business
and workforce. However, even when employees return to the workplace
to some degree, the return of business to the “way it was” in the past is
questionable.5 This necessitates investment in HR tech stack to survive
in today’s business environment.
Survey Question: Over the next two years, how will investment
in your organization's HR tech stack change?
Just 5% say 2%3%
investment in their
organization’s HR 22% 50% 22%
tech stack will
decrease over the
next two years 0 20 40 60 80 100
Decrease a lot Decrease a little Stay the same

Increase a little Increase a lot
5
Christian, A. (2022, January). Why a wide-scale return to the office is a myth. BBC Worklife. Retrieved August 18, 2022, from https://www.bbc.com/
worklife/article/20220113-why-a-wide-scale-return-to-the-office-is-a-myth
Finding: Enhancing employee experience
is the key to organizational success in the
near future
About two-thirds (64%) of respondents say enhancing employee
experience will be the most important issue to the success of their
organization over the next two years. A close second is to enhance
process automation (61%). More than half (56%) also say that providing
useful people data and analytics is important to the success of the
organization.
While employee experience is crucial to attracting and retaining the

best talent, process automations result in a more efficient HR function,
freeing up HR professionals’ time to focus on strategic issues. Further,
providing useful data and analytics is essential since it drives data-
based decisions and allows organizations to utilize technology to make
informed decisions in a competitive environment.
Survey Question: Which of the following issues will be most
important to the success of your organization over the next
two years? (select all that apply)
Enhance employee experience 64%
Enhance process automation 61%
Provide useful people data and analytics 56%
Integrate talent management solutions 43%
Reinforce the desired corporate culture 38%
Advance key performance indicators (KPIs) 35%
Provide employee self service 34%
Identify high potentials 32%
Allow mobile access 29%
Increase pay equity 24%
Increase diversity and inclusion 24%
Facilitate referrals 13%
0 10 20 30 40 50 60 70 80
Finding: The employee user experience is
key to the future of HR tech stack
Over the next two years, most respondents expect their organization’s HR
tech stack to improve employee user experience (58%). Organizations
may see higher adoption rates if the solutions within their HR tech stack
are intuitive and user friendly. Forty-five percent also expect an increase
in employee self-service. Further, 43% say they expect their HR tech
stack to improve integration abilities.
Survey Question: Within the next two years, how do you expect
your organization's HR tech stack to evolve?
Improve employee user experience 58%
Increase employee self service 45%
Provide higher quality data 45%
Improve integration abilities 43%
Boost end-user adoption 35%
Make more mobile friendly 31%
Incorporate more artificial intelligence 28%
Move more solutions to the cloud 21%
Allow greater access for remote workers 20%
Implement robotic process automation 18%

Just 9% say they
don’t expect their Have more voice-based user interfaces 7%
HR tech stack to
We do not expect it to evolve 9%
evolve over the
next two years
0 10 20 30 40 50 60
Finding: Organizations will focus on better
training of users to improve their HR tech
stack
When asked about non-technological methods that their organizations
would probably use in coming years to improve their HR tech stack, 55%
say better training of users. This is the only response chosen by more
than half of respondents. Training ensures that users are more aware of
features available to them and are more capable of using these features.
This can increase the user experience while also potentially increasing
ROI of the HR tech stack.
Almost half (46%) opted for process optimization which would increase
efficiency and one-third (35%) said they would engage in improved
technology selection processes. Both these methods have the potential
to reduce inefficiencies in the system and maximize productivity.
Survey Question: What non-technological methods will your

organization probably use in coming years to improve its HR
tech stack? (select all that apply)
Better training of users 55%
Process optimization 46%
Improved technology
selection processes
35%
Twenty-eight
percent say Better partnerships with
28%
more hiring of solutions providers
HR professionals
More hiring of HR professionals
with required with required technology skills
28%
technology skills
will help improve Increased budgets devoted
25%
their HR tech stack to improving tech stacks
More contracting with third-party

service providers/consultants 13%
0 10 20 30 40 50 60
How HR Tech-Stack Leaders Differ from
Laggards
We wanted to take a closer at what differentiates organizations with
successful HR tech stacks from those with less successful HR tech
stacks. To do this, we separated our sample into two cohorts:
HR tech-stack leaders: respondents who say their overall HR tech

stack supports the organization’s business goals and strategies well or
extremely well.
HR tech-stack laggards: respondents who say their overall HR tech stack

supports the organization’s business goals and strategies moderately,
poorly or very poorly.
Correlation does not necessarily indicate causation, of course, but these

relationships can provide clues about possible best practices related to
HR tech stack.
Results of Chi-squared Test Finding: HR tech-stack leaders are more

A chi-squared test of
likely to have a strategically aligned HR tech
independence shows that stack
HR tech-stack leaders are
significantly more likely than
HR tech-stack leaders are more likely than laggards to strongly agree
laggards to strongly agree
that their head of HR has that their HR tech stack systems are well aligned with critical business
articulated a clear vision of objectives (28% vs. 2%). The head of HR is also significantly more likely
the organization’s HR tech to have articulated a clear vision for the future of the organization's HR
stack to their direct reports
tech stack to their direct reports in HR tech leader organizations (22%)
and their organization is good
at implementing HR tech than in HR tech laggard organizations (3%).
stack systems that are well
aligned with critical business HR managers in HR tech leader organizations are also more likely than
objectives. those in laggard organizations to be aware of a well-defined strategy for
improving the HR tech stack over the next two years (17% vs. 7%).
30 28%
25 22%
20 17%
15
10 7%
5 2% 3%
0
Strongly agree their organization is Strongly agree their head of HR Strongly agree their HR managers
good at implementing HR tech (e.g., CHRO) has articulated a clear are aware of a well-defined
stack systems that are well aligned vision for the future of your strategy for improving the HR tech
with critical business objectives organization's HR tech stack to stack over the next two years
their direct reports
HR tech-stack leaders HR tech-stack laggards
Note: This data is extracted from the questions, “Your HR managers are aware of a well-defined strategy for improving the HR tech stack over the next
two years”, “Your head of HR (e.g., CHRO) has articulated a clear vision for the future of your organization's HR tech stack to their direct reports” and
“Your head of HR (e.g., CHRO) has articulated a clear vision for the future of your organization's HR tech stack to their direct reports.”
HR tech-stack leaders are more likely to have

an HR tech stack that is well aligned with
critical business objectives
Results of Chi-squared Test
Finding: HR tech-stack leaders are almost
three times more likely than laggards
independence shows that to have increased investment in their
organization’s HR tech stack over the past
laggards to have increased two years
investments in HR tech-stack a
lot over the past two years.
About two-fifths (41%) of HR tech-stack leaders say investment in their
organization's HR tech stack has increased a lot over the past two years.
By comparison, just 15% of laggards say the same. This may be one
of the reasons why HR tech-stack leaders have better capabilities and
better organizational outcomes as a result of the HR tech stack.
Survey Question: Over the past two years, how has investment
in your organization's HR tech stack changed?
41%
Increased a lot
15%
0 10 20 30 40 50
Finding: HR tech-stack leaders are far better
at usefully integrating various tech stack
independence shows that components
HR tech-stack leaders
are significantly more
One of the biggest differences between HR tech-stack leaders and
likely than laggards to say
various components of their laggards is in the area of useful integration of the various components.
organization’s HR tech stack While more than half (51%) of HR tech-stack leaders say the components
usefully integrate well or very of their HR tech stack usefully integrate well or very well together, about
well. the same proportion (49%) of laggards say the components integrate
poorly or very poorly.
As discussed earlier, a lack of integration is a barrier to good user

experience, productivity and efficiency.
Survey Question: Overall, how well do the various components

of your organization's HR tech stack usefully integrate with
one another?
60
51%
49%
50
40
30
20
10 6%
4%
0
Poor or very poorly Well or very well
HR tech-stack laggards HR tech-stack leaders
Finding: Over half of HR tech-stack laggards
struggle with the issues related to lack of
independence shows that integration of HR components
HR tech-stack laggards are
More than half (52%) of HR tech-stack laggards say that the relative
leaders to say they struggle
with the issues related to lack of useful integration is keeping their organization from attaining
lack of integration of HR important HR goals. Just 22% of leaders say the same.
components.
Survey Question: Is the relative lack of useful integration of

HR components keeping your organization from attaining
important HR goals?
60
52%
50
40
30
22%
20
10
0
Yes, a lot
Finding: HR tech-stack leaders have more
easily reconfigurable HR tech stacks
independence shows that
HR tech-stack leaders are HR tech-stack leaders are not only more likely to have better
significantly more likely than capabilities in their HR tech stack, but they are also four times more
laggards to say reconfiguring
likely than laggards to easily reconfigure their HR tech stack when
the capabilities of their HR tech
needed (37% vs. 9%).
stack is easy or very easy.
To contrast, HR tech-stack laggards are more likely to struggle with

reconfiguration. Two-thirds (68%) of HR tech-stack laggards say it is
difficult or very difficult to substantially reconfigure their HR tech stack,
while just 28% of HR tech-stack leaders say the same.
Survey Question: How hard is it to substantially reconfigure

your current HR tech stack when needed?
80
68%
70
60
50
40
37%
28%
30
20
9%
10
0
Difficult or very difficult Easy or very easy
Finding: HR tech-stack leaders produce
more accurate, actionable and meaningful
independence shows that people analytics
HR tech-stack leaders are more likely than laggards to say that the
laggards to say their HR
tech stack produces people people analytics from their HR tech stack is accurate (63% vs. 15%),
analytics that are accurate, meaningful (57% vs. 12%) and actionable (54% vs. 15%).
meaningful and actionable.
This enables leaders to not only make better decisions but to also have
greater trust in the decisions based on their people analytics data.
Survey Question: To what degree does your HR tech stack

produce people analytics that are:
Percent responding high or very high
63%
Accurate
Gap 48 pts 15%
57%
Meaningful
Gap 46 pts 12%
54%
Actionable
Gap 39 pts 15%
0 10 20 30 40 50 60 70 80
Finding: HR tech-stack laggards experience
more pain points overall than leaders
independence shows that
HR tech-stack laggards are HR tech-stack laggards are much more likely than leaders to suffer
significantly more likely than from various pain points. The largest gaps are in the following areas:
leaders to say their HR tech-
stack pain points are: ●● difficulty getting accurate and useful data/information out
●● not enough of the ●● not enough of the solutions or features we need

solutions or features we
need ●● too many competing solutions/components
●● difficulty getting ●● out-of-date functionalities

accurate and useful
data/information out
Survey Question: What are your organization's biggest pain
●● too many competing points in regard to your current HR tech stack?
solutions/components (select all that apply)
●● out-of-date
functionalities 58%
Difficulty getting accurate and
useful data/information out 24%
55%
Not enough of the solutions
or features we need 27%
Not enough in-house 41%

technical expertise 28%
Poor implementation 38%

/execution 25%
Out-of-date 37%
functionalities 19%
35%
Too many competing
solutions/components 16%
One out of five HR

1%
tech-stack leaders We do not have
report they have no any pain points 20%
pain points
0 10 20 30 40 50 60
Finding: HR tech-stack leaders see
much more success with increased HR
independence shows that productivity and meeting organizational
needs
laggards to say their HR tech-
stack solutions have improved HR tech-stack leaders are more likely to yield better organizational
HR’s efficiency/productivity, outcomes due to their HR tech stack solutions. Eighty-three percent
organizational efficiency/
of HR tech-stack leaders say their organization’s HR tech stack
productivity and the employee
experience improves HR’s efficiency/productivity, while just 44% of laggards say
the same.
About three-quarters (76%) of HR tech-stack leaders also say their

HR tech stack improves organizational efficiency/productivity. By
comparison, just under 36% of laggards say the same. Similarly, HR
tech-stack leaders are more than twice as likely as laggards to say that
there is an increase/improvement in employee experience due to the
organization’s HR tech stack (73% vs. 34%).
Survey Question: Your organization's HR tech stack solutions

measurably increase/improve:
Percent responding agree or strongly agree
83%
HR's efficiency/
productivity
44%
HR tech stack
leaders are more
than twice as 76%
likely to say their Organizational efficiency/
productivity
solutions increase 36%
organizational
efficiency/
productivity 73%
The employee experience
34%
0 20 40 60 80 100
Key Takeaways
What follows are some ideas and tips for improving
and maximizing your organization’s HR tech stack.
1
Involve HR professionals in designing the HR tech stack. The choice
Key of HR tech stack depends on both the operational and employee needs
Takeaway of the organization. For strategic alignment, HR professionals need to
be involved in the selection and implementation of HR tech solutions.
This means HR professionals must be knowledgeable in technological
advancements, solutions available in the market and how they would
benefit the organization. This also requires the head of HR to create a
future-focused strategic HR tech stack plan and articulate this vision
with HR managers.
2
Focus on integration of solutions. Our research finds that integrated
Key technologies are crucial for increasing employee experience,
Takeaway engagement and productivity. Look for technologies that work well
together or opt for one integrated solution. A unified platform that
automates HR processes can greatly increase efficiency of HR
professionals. This is crucial for managing geographically dispersed,
remote workers whereby these technologies can streamline core HR
processes such as recruitment, benefits and performance management.
They may also be leveraged to get real-time metrics and spot trends
more effectively and accurately.
3
Ensure accuracy of data for analytics. Since most people decisions
Key derived using an HR tech stack depend on the quality of data available, it
Takeaway is essential that the data utilized is accurate, consistent and meaningful.
Organizations must also ensure data security and privacy. Despite the
fast-paced nature of decision making required, it is recommended that
organizations spend time cleaning and analyzing data, which could
potentially reduce or prevent making erroneous decisions based on
inconsistent or inaccurate data. One of the ways to ensure all members
of the organization are on the same page with regards to data is to use a
“data dictionary.” For example, this could be a compilation of consistent
definitions, terminologies and processes that allow all stakeholders to
speak a common language and avoid confusion or inconsistencies.
Further, collecting data could be automated through use of dashboards
and other technologies. When done properly, automated technologies
can reduce errors during data collection while allowing scalability and
increased accessibility to data and insights.
4
Leverage your HR tech stack to improve employee experience.
Key Employees today are expecting a consumer grade employee experience.
Takeaway This expectation extends to the HR tech stack available in the
organization. Organizations can leverage data science, AI and machine
learning to better understand employees and identify any gaps that
could improve employee experience. Consider collecting data about how
employees are engaging with technologies and optimizing their user
experience by removing bottlenecks. This can allow for a continuously
improving and evolving technological solution. In most cases, employee
experience with regards to HR tech stack is adversely affected with
the use of disparate tools that do not integrate well together, which
can reduce productivity. Ensuring seamless access to resources,
communications and proactive support can help maximize the employee
experience. Technologies such as AI-driven chatbots can help automate
simple searches for data and facilitate easy access of information
required to do work and remove barriers to efficiency.
5
Make sure your HR tech stack can adapt. With fast-paced
Key technological changes and innovations, it is important for organizations
Takeaway to be agile and flexible to meet business needs. This must be done while
balancing customer needs and fending off global competitors. To rapidly
evolve to meet these changing circumstances, the HR tech stack needs
to be easily reconfigurable and customizable. In the absence of these
features, the tech stack can become obsolete and irrelevant.
6
Expand capabilities to include DEI. While many organizations leverage
Key their HR tech stack to automate and improve core HR functionalities,
Takeaway consider leveraging it to also take DEI into consideration. Firstly, the HR
tech stack can be used to get an accurate picture of the organization’s
workforce by providing a demographic breakdown such as gender and
ethnicity. Organization can then investigate to uncover unconscious bias,
pay inequities and improve DEI analytics. The HR tech stack can also be
used to continuously measure the intake of talent using a DEI lens.
7
Educate HR professionals on the HR tech stack. To get maximum
Key gains from the HR tech stack, HR professionals must know how to use
Takeaway it correctly and efficiently. HR professionals must be able to identify,
read, analyze and use people data so that they are empowered and
encouraged to make data-driven decisions. Consider cross training your
HR team in people analytics best practices so they are equipped to solve
complex business problems using analytics. In an increasingly digitized
workplace, HR must lead the way in embracing technology.
About UKG
At UKG, our purpose is people. As strong believers in the power of culture

and belonging as the secret to success, we champion great workplaces
and build lifelong partnerships with our customers to show what’s possible
when businesses invest in their people. Born from a historic merger that
created one of the world’s leading HCM cloud companies, our Life-work
Technology approach to HR, payroll, and workforce management solutions
for all people helps 50,000 organizations around the globe and across every
industry anticipate and adapt to their employees’ needs beyond just work.
To learn more, visit ukg.com.
About HR.com and the HR Research Institute
The HR Research Institute helps you keep your finger on the pulse of HR!
Powered by HR.com, the world’s largest community of Human Resources
professionals, the HR Research Institute benchmarks best practices
and tracks trends in human resources to help more than 2 million HR
professionals (that many people can’t be wrong!). Companies are backing
up their strategic decisions with informed and insightful HR.com research
references!
Over the past few years, the HR Research Institute has produced over 100
leading edge primary research and state of the industry research reports,
along with corresponding infographics, based on surveys of thousands
of HR professionals. Each research report highlights current HR trends,
benchmarks and industry best practices. HR Research Institute reports
and infographics are available online, and always free. Visit hr.com/
hrresearchinstitute to maximize your HR potential. #hrresearchinstitute

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The State of Today's Build and use an

HR Tech Stack that helps

8 Defining the HR Tech Stack

9 The Status of Today’s HR Tech Stack

17 The HR Tech Stack’s Impact on Productivity and Experience

20 Strategic Alignment of HR Tech Stack

23 HR Tech Stack Infrastructure Issues

33 The Future of the HR Technology Stack

38 How HR Tech-Stack Leaders Differ from Laggards

An organization’s HR tech stack represents an organization’s

●● the most commonly included capabilities

Below is an overview of the top findings from the study:

●● The most commonly included capabilities in HR tech stacks are:

●● The most common issues that organizations are trying to address

 providing useful people data and analytics (61%)

●● Just 40% say that their organization is good at implementing HR tech

●● Just 49% say that HR managers are aware of a well-defined strategy

●● Just 29% say the components of their HR tech stack usefully

●● About the same proportion (27%) say the components integrate

●● Reconfiguring the HR tech stack is challenging with almost half

●● The most commonly cited pain points include:

 difficulty getting accurate and useful information (41%)

●● The most common problems are:

 not leveraging or utilizing all the stack’s capabilities (50%)

●● Over half agree or strongly agree their HR tech stack measurably

●● Three-fifths (62%) agree or strongly agree that their HR tech stack

●● Although 67% of respondents say their organizations have

●● Issues that will be important to the success of organizations over

 enhancing employee experience (64%)

 improve employee user experience (58%)

●● Organizations are most likely to focus on better training of users

●● more likely to say their organization is good at implementing

●● more likely to say the HR managers are aware of a well-defined

●● three time as likely to have increased investment in their

●● more likely to say the components of their HR tech stack integrate

●● more likely say their HR tech stack improves HR’s efficiency/

The Human Resources Technology Stack (aka, HR tech stack)

Larger versus smaller organizations

Defining Small, Mid-sized and Large Organizations

For the purpose of this report, large organizations have

Benefits administration 70%

Recruitment/talent acquisition 67%

Learning and development 60%

Performance management 59%

About half (47%) Workforce management

Succession planning/management 27%

●● enhance process automation (61%)

●● provide useful people data and analytics (61%)

●● provide employee self service (60%)

●● enhance employee experience (60%)

Despite increasing focus on DEI and fairness in recent years, increasing

Enhance process automation 61%

Provide useful people data and analytics 61%

Enhance employee experience 60%

Provide employee self service 60%

Integrate talent management solutions 44%

Career pathing and mapping 43%

Allow mobile access 43%

Reinforce the desired corporate culture 37%

Advance key performance indicators (KPIs) 35%

Skills and/or personality assessments 34%

Increase diversity and inclusion 29%

Identify high potentials 26%

providing useful people data and analytics (61%)

difficulty getting accurate and useful information (41%)

not leveraging or utilizing all the stack’s capabilities (50%)

enhancing employee experience (64%)

improve employee user experience (58%)