What Is A HR Technology Strategy

What Is A HR Technology Strategy


James Rowland

Commercial Director James leads Account Management, Sales and Marketing at Neathouse Partners.


05 June 2023


17 July 2024
7 min read

What is a HR technology strategy

A HR technology strategy is a plan that businesses develop that aims to use technology in the management of their human resources functions. The aim of the strategy should be to align technical capabilities with HR and business goals and objectives and the output should increase efficiency productivity, and employee engagement throughout the employee life cycle.

From recruitment, onboarding, performance management, training & development, compensation & benefits, administration and workforce analytics, the right HR technology can help to manage talent and drive overall business success.

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Overview Of A Human Resources Technology Strategy

Human resource technology can be used to help attract, retain, and develop the right people with the right skills and cultural fit, which can begin a strategic transformation of the HR function.

The right strategy should focus on the role of technology in managing employees and helping to allocate budgets for maximum return on investment. Examples of strategic HR applications and functions include compensation planning, recruitment, succession planning, employee development, and talent management.

If your business has a HR technology strategy, it should cover multiple years and be re-visited annually to assess any progress made and make corrections needed to further improve the desired business outcomes.

Key Stakeholders To Involve When Adding Tech To HR Processes

Key Stakeholders To Involve When Adding Tech To HR Processes

When adding technology to HR processes, involving key stakeholders from different areas of the organisation is crucial for the successful implementation of new tech. These stakeholders include the HR department, IT department, operations department line managers, senior management, finance department, and employees.

The HR department plays a vital role in understanding the specific needs and challenges of HR processes. They can provide valuable insights into how technology can improve efficiency and effectiveness. The IT department ensures that the HR technology aligns with the organisation's overall IT strategy and provides technical expertise and support.

The operations department represents the end-users of the HR technology and involving them in decision-making ensures that the technology meets their needs. Senior management's support and strategic direction are essential for securing resources and budgets. The finance department provides insights into the financial implications, and involving employees at various levels ensures overall workforce preferences are considered.

By involving these key stakeholders, organisations can leverage their expertise, present opportunities to gather diverse perspectives, promote collaboration, and increase the likelihood of successful adoption and implementation of HR technology solutions.

HR Leaders Must Consider Business Goals and Needs

Having the right HR tech strategy and the best technology is not enough; alignment with business goals and needs is also crucial.

By considering business goals and needs, HR leaders can effectively identify the gaps and areas where HR technology can bring the most value. Whether it's improving recruitment and talent acquisition, enhancing performance management, or optimising learning and development, aligning HR tech with business needs and objectives ensures that investments in technology will have a positive impact on the organisation's overall success.

Ultimately, HR technology should serve as a tool to support and involve employees, and enable the achievement of business goals whilst enhancing HR processes and drive improvements in organisational performance.

Further Reading: Could AI change the world of HR as we know it?

Strategic HR Functions

Strategic HR functions are essential for optimising your resources and leveraging data analytics to make informed decisions that ensure your business is well-positioned in a competitive business landscape.

The key strategic HR functions include:

  1. Workforce Planning: Forecasting and aligning workforce needs with business objectives to ensure the right people are in the right roles at the right time.
  2. Talent Acquisition and Recruitment: Attracting, sourcing, and selecting top talent that aligns with organisational needs and culture.
  3. Performance Management: Setting performance goals, providing feedback, and evaluating employee performance to drive productivity and development.
  4. Learning and Development: Designing and implementing training programs to enhance employee skills, knowledge, and capabilities.
  5. Succession Planning: Identifying and developing potential leaders within the organisation to ensure a pipeline of talent for future leadership roles.
  6. Employee Engagement and Retention: Promoting a positive work culture, addressing employee needs, and implementing strategies to enhance employee engagement and retention.
  7. Compensation and Benefits: Developing and administering competitive and equitable compensation and benefits programs to attract, motivate, and retain employees.
  8. Employee Relations: Managing and resolving employee relations issues, promoting a positive work environment, and ensuring compliance with employment laws and regulations.
  9. Diversity, Equity, and Inclusion: Fostering a diverse and inclusive workplace, promoting equity, and implementing initiatives to enhance diversity and inclusion across the organisation.
  10. HR Analytics and Data-Driven Decision-Making: Utilising HR data and analytics to inform strategic decision-making, identify trends, and drive HR initiatives and programs.

These strategic HR functions are essential for aligning human capital with business goals, optimising employee performance, fostering a positive work environment, and driving organisational success.

Finally, corporate culture is another key area of focus for strategic HR functions. In order to create an environment that encourages collaboration, innovation, and creativity, it is important to foster a corporate culture that is inclusive and supportive of diversity. This involves creating clear and consistent policies, as well as encouraging employees to take ownership of their own development.

Types Of HR Strategy

Types Of HR Strategy

The first type of HR strategy is a high-level, overarching business strategy, that applies to managing an organisation's personnel as a whole. This type of strategy focuses on recruitment trends, talent optimisation, corporate culture, automation strategies, and training plans. It also considers the strengths, weaknesses, opportunities, and threats of the organisation to create a plan that is tailored to the business's needs.

The second type of HR strategy is a specific strategy that addresses subsets of HR. This type of strategy focuses on strategic initiatives that are specific to a certain area, such as compensation planning, recruitment, succession planning, employee development, and more. This type of strategy is designed to solve issues that are specific to a certain area and comes with a plan that is tailored to the business's needs.

Consider SWOT Analysis For Your HR Strategy

A SWOT analysis for an HR strategy involves evaluating its strengths, weaknesses, opportunities, and threats. Analysing in this way helps HR professionals to make informed decisions, align HR strategies with organisational goals, and optimise the effectiveness and impact of their HR teams' functions.

Once an organisation has identified the key areas of focus on from an employee perspective through their SWOT analysis, it can create a strategic plan that outlines business priorities and the steps required to achieve success. This plan should include goals for recruitment, talent management, compensation, succession planning, corporate culture, and employee development.

Identifying an organisation's strengths, weaknesses, opportunities, and threats through a SWOT analysis is crucial for creating an effective HR plan that will help propel the business towards success.

Frequently Asked Questions

What is the best way to implement HR technology?

To implement HR technology effectively, assess your organisation's needs, and future requirements, select suitable technology solutions, involve stakeholders, create a detailed plan, provide comprehensive training, monitor progress, and embrace a culture of continuous improvement.

Project leads will need to assess their organisation's needs across recruitment, employee engagement, performance tracking, data securing and onboard processes. Next, suitable technology must be identified, compared and assessed involving stakeholders from across the business.

Once a preferred solution has been found, a detailed plan must be created to set out how it will be delivered and rolled out. Comprehensive training for all employees must be delivered, progress monitored, and the organisation must remain open to a culture of continuous improvement so that the HR technology implementation can be continually tailored to the businesses changing needs over time.

What is the role of HR in the digital transformation process?

As organisations look to upgrade their technology to remain competitive and maximise their potential, the HR team has an important role to play in the digital transformation process.

HR professionals are responsible for identifying the right digital tools and systems to enhance HR processes, and various functions such as recruitment, onboarding, performance management, and learning and development. They facilitate change management initiatives, ensuring employees are equipped with the necessary skills and knowledge to leverage digital solutions effectively.

Ultimately, HR acts as a strategic partner, supporting the digital transformation journey and helping to create a digitally enabled and future-ready workforce.

What are the key benefits of an effective HR technology strategy?

The key benefits of an effective HR technology strategy include:

  1. Streamlined HR processes: Automate and simplify tasks, saving time and effort.
  2. Improved data management and analysis: Gain insights for informed decision-making.
  3. Enhanced recruitment and talent acquisition: Expand candidate pool and expedite hiring.
  4. Increased employee engagement and satisfaction: Provide convenient self-service and personalised communication.
  5. Effective performance management: Set goals, track progress, and provide timely feedback.
  6. Compliance and risk management: Ensure adherence to laws, regulations, and data privacy.
  7. Cost savings: Reduce administrative costs and eliminate errors.
  8. Strategic HR decision-making: Utilise real-time data for workforce planning and talent development.

Ultimately, an effective, HR software and technology strategy improves efficiency, supports decision-making, attracts talent, enhances employee experience, ensures compliance, saves costs, and enables strategic HR management.

What are the most important elements of a successful HR strategy?

The key elements of a successful HR strategy include alignment with organisational goals strategic objectives, talent acquisition and retention effective workforce of, performance management, employee engagement and well-being, learning and development, effective HR policies and compliance, data-driven decision-making, and continuous evaluation and improvement.

  1. Align with organisational goals: Ensure HR strategy supports business objectives.
  2. Talent acquisition and retention: Attract and keep top talent through effective recruitment, branding, onboarding, and development.
  3. Performance management: Establish clear goals, provide feedback, conduct reviews, and offer growth opportunities.
  4. Employee engagement and well-being: Foster a positive culture, promote work-life balance, and support employee well-being.
  5. Learning and development: Continuously enhance skills, performance, and career progression through training and growth initiatives.
  6. Effective HR policies and compliance: Establish and enforce fair policies, diversity efforts, and a safe work environment.
  7. Data-driven decision-making: Utilise HR data and analytics to inform talent management, performance optimisation, and resource allocation.
  8. Continuous evaluation and improvement: Regularly assess HR initiatives, gather employee feedback, and adapt strategies to meet evolving needs.

How can HR technology help attract and retain the right people?

HR technology helps you to attract and retain the right people by streamlining recruitment processes, effective candidate screening, enhancing employer branding, and employee expectations, improving candidate experience, and leveraging data for decision-making.

  • Effective Candidate Screening: Advanced HR tech uses algorithms and analytics to quickly identify suitable candidates, reducing manual effort and improving hiring accuracy.
  • Enhancing Employer Branding: HR tech showcases culture, values, and employee experiences, attracting candidates who align with the company's mission.
  • Improving Candidate Experience: HR tech offers user-friendly online applications, personalised communication, and transparent updates, leaving a positive impression on candidates.
  • Leveraging Data for Decision-Making: HR tech collects and analyses HR data (performance, engagement, turnover), enabling data-driven decision-making.

Ultimately, automating HR processes can save time and money by eliminating manual work and increasing productivity.


With a robust HR strategy, organisations can streamline processes, improve decision-making, foster employee satisfaction, and ultimately drive business success.

A HR technology strategy streamlines HR processes, enhances efficiency, improves decision-making, and benefits businesses with cost savings and improved employee experiences. With the right strategy, businesses can attract and retain talent, optimise recruitment and screening, foster a positive employer brand, and leverage valuable HR data for informed decision-making.

When used correctly, a well-developed human resource strategy can help an organisation remain competitive and survive in the new world of work.

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