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Simple definition of HR Technology 

HR technology or HR tech is software that combines HR systems and processes that ensures easy management of data and employees of a company.

Functions of HR Technology 

The technology can be used by companies to combine the necessary HR functions such as managing payrolls, storing employee data and keeping track of attendance, all the while ensuring that the everyday HR processes are easy to access. The HR software performs all the functions of regular HR departments. To reduce the workload on the HR departments in large companies, they begin to automate most of their processes electronically. Before the client-server architecture evolved in the 1980s, HR automation was often left to the mainframe computers that were, at the time, handling large amounts of data. As proprietary software required high capital investment to buy or program, most of the internally developed HR software was limited to companies that possessed large amounts of capital.

Growth of HR Technology 

HR tech has grown exponentially in the past couple of years. These days, large man-power companies are widely adopting core HR technology systems from companies that specialize in HR technology as well as companies like SAP and Oracle. Originally used as an on-premises system, most vendors are now migrating to cloud platforms as well as SaaS. At the same time, small to medium-sized businesses are also moving towards HR technology, turning to SaaS platforms or cloud-based outsourcing vendors.


Human Resource Information Systems (HRIS) provides the means to acquire, analyze, store and distribute information to stakeholders. It enables the improvement of traditional processes while also enhancing strategic decision-making. Today’s HR tech software systems cover the full spectrum of HR department tasks, evolving to fitting their ever-increasing needs. The future of HR software technology is expected to boost efficiency with a more personalized and candidate-specific recruiting. It will also come with a streamlined interface and will automate more HR processes that are currently manually performed.


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