Copyright TechTarget - All rights reserved https://cyber.law.harvard.edu/rss/rss.html Techtarget Feed Generator en Sat, 06 Jun 2026 17:18:03 GMT https://www.techtarget.com/searchhrsoftware editor@techtarget.com <p>HR possesses some of a company's most valuable data, including employees' Social Security numbers and other personal information that a company must work to protect. Though some may believe HR professionals are mainly responsible for carrying out personnel decisions and benefits management, HR staff can and must help protect their organization from cybersecurity attacks, and CHROs must ensure their HR department is prepared to do so .</p> <p><a href="https://www.techtarget.com/searchsecurity/feature/The-importance-of-HRs-role-in-cybersecurity">HR staff can make many contributions</a> to help fortify their organization's data security program and help keep the company resilient against attacks. Some of these include working on employee training and identifying sensitive HR records.</p> <p>Here's how CHROs can help their team bolster data security efforts.</p> <section class="section main-article-chapter" data-menu-title="Help establish and communicate established security policies"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Help establish and communicate established security policies</h2> <p>CHROs should ensure that HR professionals are serving <a href="https://www.toolbox.com/tech/security/blogs/management-outside-of-it-must-be-part-of-your-security-committee-042318/" target="_blank" rel="noopener">on the</a> organization's IT and security governance committee and helping create security rules.</p> <p>HR staff should then <a href="https://www.techtarget.com/searchhrsoftware/tip/Cybersecurity-education-How-HR-can-plan-for-the-inevitable">communicate their organization's acceptable usage policy</a> and confidentiality and nondisclosure requirements to employees. These may exist in standalone documents or as part of an employee handbook.</p> </section> <section class="section main-article-chapter" data-menu-title="Organize security training"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Organize security training</h2> <p>CHROs should ensure that <a href="https://www.techtarget.com/searchhrsoftware/tip/6-ways-HR-can-ensure-cybersecurity-for-remote-workers">all employees are receiving the necessary corporate training</a>, which includes expectations around computer and internet usage. HR staff should also consider implementing periodic tests to ensure that security stays on top of employees' minds.</p> </section> <section class="section main-article-chapter" data-menu-title="Work on data standards"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Work on data standards</h2> <p>HR staff should work with technical professionals and legal staff to establish company data classification and retention standards, as well as policies that meet state and federal legal requirements. They should also collaborate with tech professionals and legal staff to decide on wording for vendor, business partner and customer contracts.</p> <p>In addition, HR should work with technical professionals to ensure they are properly destroying employee records in accordance with corporate policies around data retention.</p> </section> <section class="section main-article-chapter" data-menu-title="Identify sensitive HR records"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Identify sensitive HR records</h2> <p>CHROs should ensure that HR staff are working with technical professionals to discover sensitive HR records across the local network and in the cloud to help ensure those data assets are properly protected. HR staff should also evaluate existing and emerging compliance requirements involving sensitive records.</p> <p>In addition, HR should work with technical professionals and other departments as necessary to complete auditor or vendor security questionnaires that involve management oversight of sensitive records.</p> </section> <section class="section main-article-chapter" data-menu-title="Keep an access record"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Keep an access record</h2> <p>HR staff should work with technical professionals to establish and maintain logs documenting HR's access to employee records and ensure that these logs are in line with internal security policies <a href="https://www.techtarget.com/searchhrsoftware/tip/Best-practices-for-HR-data-compliance">and compliance requirements</a>.</p> </section> <section class="section main-article-chapter" data-menu-title="Set an example"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Set an example</h2> <p><a href="https://www.techtarget.com/searchhrsoftware/tip/Get-smarter-about-HR-data-security">The HR department should serve as a leader</a> in practicing the security essentials. Some of these best practices include the following:</p> <ul class="default-list"> <li>using strong passphrases;</li> <li>updating software when prompted;</li> <li>considering the physical security of laptops, tables and phones;</li> <li>avoiding clicking random web links or opening email attachments;</li> <li>following best practices for saving sensitive records on local computers, network servers, and in the cloud; and</li> <li>reporting suspicious behavior to the IT and security team.</li> </ul> </section> Employees' personal information is some of the most valuable data at a company, and HR must work to help protect it. Learn how HR can help bolster data security efforts. https://cdn.ttgtmedia.com/rms/onlineimages/folder-files07.jpg https://www.techtarget.com/searchhrsoftware/tip/How-HR-can-protect-employees-personal-information Thu, 04 Jun 2026 13:00:00 GMT <p>Climate change is a reality, and sustainability is a priority for many businesses.</p> <p>As part of their <a href="https://www.techtarget.com/sustainability/feature/Business-sustainability-trends">efforts to improve sustainability</a>, many companies are rethinking how they conduct business travel. More than 48% of companies in the U.S. and Europe said they plan to optimize their corporate travel policies to reduce environmental impact, according to the 2025 Deloitte corporate travel <a target="_blank" href="https://www.deloitte.com/us/en/about/press-room/deloitte-announces-corporate-travel-study-2025.html" rel="noopener">study</a>.</p> <p>For CIOs, this presents both a challenge and an opportunity. Implementing the right technology stack can manage, measure and cut a business's travel emissions while also reducing travel costs.</p> <section class="section main-article-chapter" data-menu-title="What is business sustainability?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is business sustainability?</h2> <p><a href="https://www.techtarget.com/whatis/definition/business-sustainability">Business sustainability</a> -- or corporate sustainability -- is the ethical management of a business's environmental, social and financial aspects to ensure future success. Social and environmental concerns can sometimes conflict with financial goals, but in the long term, going green can reduce a business's energy costs and carbon footprint.</p> <p>Forty-five percent of people surveyed in Deloitte's 2025 C-suite Sustainability <a href="https://www.deloitte.com/content/dam/assets-shared/docs/about/2025/2025-deloitte-global-c-suite-sustainability-report.pdf">Report</a> said climate change and sustainability were the most pressing challenges to focus on in the next year. Moreover, the same report indicated that 40% of C-suite leaders said transforming the business model to address climate change and sustainability is central to their organization's strategy.</p> </section> <section class="section main-article-chapter" data-menu-title="Technology and metrics"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Technology and metrics</h2> <p>Before implementing individual travel practices, CIOs need to adopt a travel management platform to measure and manage sustainable travel. Platforms such as Navan, Perk, SAP Concur and Spotnana can track carbon emissions and help find low-emission travel options.</p> <p>Key sustainability metrics to track include the following:</p> <ul class="default-list"> <li><a href="https://www.techtarget.com/sustainability/feature/How-businesses-can-track-carbon-emissions">Carbon emissions</a> per trip, employee and department.</li> <li>Adoption rates of sustainable options.</li> <li>Cost savings from green choices.</li> <li>Virtual meeting substitution rates.</li> </ul> <p>CIOs should work with the CFO, chief sustainability officer and chief HR officer to oversee policy development and track progress.</p> </section> <section class="section main-article-chapter" data-menu-title="Sustainable business travel tips"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Sustainable business travel tips</h2> <p>Here are some sustainable travel practices that companies can implement to <a href="https://www.techtarget.com/searchcio/feature/Understand-the-digital-carbon-footprint-of-enterprise-IT">reduce their carbon footprint</a> without giving up business travel.</p> <h3>1. Book business trips selectively and automate policy enforcement</h3> <p>Everyone likes to get out of the office occasionally for a change of venue and to shake up the daily grind. But businesses need to question whether in-person travel is a necessity, as it can greatly increase an organization's environmental footprint.</p> <p>Businesses can discourage short trips in favor of stringing several trips together. Companies should also consider whether virtual alternatives are a possibility. Many <a href="https://www.techtarget.com/searchcio/feature/Strategic-IT-outlook-Tech-conferences-and-events-calendar">industry conferences</a> offer virtual options through video conferencing tools that let workers attend the same sessions and hear the same speakers.</p> <p>Beyond being selective about travel bookings, CIOs can implement automated policy engines to enforce sustainability rules, ensuring compliance, without manual oversight. This might include requiring justification for flights under a certain distance, flagging direct flight alternatives and setting carbon budgets.</p> <h3>2. Consider eco-friendly transportation</h3> <p>If the destination isn't too far away, businesses should ask employees to take the train instead of a plane, as rail travel has lower carbon emissions than air travel, according to a study in the <i>Journal of the Air &amp; Waste Management Association</i>. Trains can also offer travelers better views and more legroom.</p> <p>But sometimes trains aren't an option. If travelers need to fly, businesses should encourage direct flights whenever possible. Carbon emissions are influenced by takeoff and landing cycles -- and the fuel burned at takeoff and climbing to cruising altitude is high, according to the same study. While flights with layovers might be more economical, they aren't doing the environment any favors.</p> <h3>3. Choose green hotels</h3> <p>Many hotels have taken steps to reduce their carbon footprint. When booking hotels, ask what steps they have taken to go green and see if they have any <a href="https://www.techtarget.com/searchdatacenter/definition/LEED-Leadership-in-Energy-and-Environmental-Design">LEED</a> certifications. LEED is an environmental certification program for buildings.</p> <p>Many hotels now only provide new sheets and towels upon request, helping conserve both energy and water in the washing process. And in some hotels, single-use toiletries are a thing of the past. In their place are bulk items such as shampoo, conditioner and body wash attached to the shower wall, eliminating excess waste in the landfill.</p> <h3>4. Pack light</h3> <p>It takes more fuel to transport heavy objects, so pack only the essentials. Not only is this environmentally friendly, but it is also more cost-effective. Packing light eliminates the need to check a bag on a flight, which usually incurs an additional cost. It also enables travelers to move freely in airports and cities, as they're not weighed down with baggage.</p> <h3>5. Don't print travel documents</h3> <p>Printing boarding passes is a thing of the past. Most airlines today offer mobile apps that let passengers view their trip details and show digital boarding passes to TSA and gate attendants.</p> <p>Many hotel apps offer the same service, where travelers can view trip details and confirmation numbers. For hotels without an app, travelers should save hotel confirmation emails in a folder on their phones and access the information from there.</p> <h3>6. Encourage reusable products</h3> <p>One of the easiest things businesses can do is provide reusable water bottles to employees. Many airports, hotels and conference facilities have water bottle fill stations for travelers, and this eliminates additional single-use plastic in the landfill. And if it's a logoed bottle, it's free advertising for the company.</p> <h3>7. Consider green ground transportation</h3> <p>Travelers visiting metropolitan areas such as Boston, Chicago, New York and San Francisco should ditch the rental car and consider public transport, such as the subway or bus, while they're visiting. Better yet, travelers should make hotel reservations near the office or event venue they'll be visiting and walk, eliminating carbon emissions completely.</p> <p>But if a rental car is necessary, travelers should consider an electric vehicle to minimize their carbon footprint. With high gas prices, it is also more cost-effective for businesses.</p> <h3>8. Eat locally</h3> <p>Eating at restaurants that source their food nearby reduces the transportation emissions associated with food production. Travelers should look for locally owned businesses and avoid chains. Farm-to-table restaurants are a great option.</p> </section> <section class="section main-article-chapter" data-menu-title="Business case and ROI"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Business case and ROI</h2> <p>While a travel management platform can help a business reduce carbon emissions, it can also yield cost savings through optimized booking.</p> <p>To calculate the ROI of a travel management platform, follow this formula:</p> <p><span style="font-family: 'courier new', courier, monospace;">ROI = (Total benefits - Total costs / Total costs) x 100</span></p> <p>Total benefits include hard savings, process and administration savings, and rebates and rewards. Total costs include subscription fees, implementation fees and transaction/booking fees.</p> <p><em>Sarah Amsler is a senior managing editor for the IT Strategy team at TechTarget.</em></p> </section> Business travelers can reduce their carbon footprint in several ways, including considering eco-friendly transportation, choosing green hotels and eating locally. https://cdn.ttgtmedia.com/rms/onlineimages/sustainability_g1360884566.jpg https://www.techtarget.com/sustainability/feature/8-tips-for-sustainable-business-travel Wed, 03 Jun 2026 09:36:00 GMT <p>Employee experience is a crucial part of any company’s operations, but some challenges can get in the way. Chief HR officers (CHROs) should learn about some of the most common barriers to a positive employee experience so they can prevent the challenges from occurring.</p> <p><a href="https://www.techtarget.com/searchhrsoftware/feature/7-talent-acquisition-and-recruitment-trends">Hiring can be a time-consuming investment</a> for HR and hiring managers: The average time to fill a position is about 63 days, according to the "2026 Hiring Benchmarks Report" by Employ Inc. Organizations want to see a return on the expense of hiring, and replacing workers can lead to a loss in productivity. Delivering a good employee experience is critical for retaining employees.&nbsp;</p> <p>Here are some common challenges that can interfere with a company delivering a <a href="https://www.techtarget.com/searchhrsoftware/Guide-to-building-an-effective-employee-experience-strategy">positive employee experience</a>.</p> <section class="section main-article-chapter" data-menu-title="1. A negative onboarding experience"> <h2 class="section-title"><i class="icon" data-icon="1"></i><em>1.&nbsp;&nbsp;&nbsp;&nbsp; </em><em>A negative onboarding experience</em></h2> <p>Companies should establish a good employee experience from the start, and a negative <a href="https://www.techtarget.com/searchhrsoftware/tip/10-best-practices-and-checklist-for-remote-onboarding">onboarding experience</a> can derail that effort. CHROs are responsible for creating a successful onboarding process and ensuring that HR staff follow it.</p> <p>If a CHRO's company is not already doing it, the CHRO might want to consider instituting a program in which a new hire is assigned to a peer. The senior co-worker can help the new hire get settled and build relationships with colleagues, which can improve the new employee's experience.</p> <p>CHROs should also instruct managers to tell new hires who to reach out to if the new hire has questions.</p> </section> <section class="section main-article-chapter" data-menu-title="2. Problems with managers"> <h2 class="section-title"><i class="icon" data-icon="1"></i>2.&nbsp;&nbsp;&nbsp;&nbsp; Problems with managers</h2> <p>Difficult managers are often the primary cause of a negative employee experience. Forty-seven percent of surveyed employees said they left a job that they otherwise enjoyed because of problems with their manager, according to a 2025 report by BambooHR. Managers who give unclear directions, micromanage, take credit for their subordinates' work or create a toxic environment can negatively affect employee retention.</p> <p>CHROs should instruct HR business partners or other leaders to closely monitor managers' leadership styles and quickly address any negative behaviors. Attention should also be paid to <a href="https://www.techtarget.com/searchhrsoftware/feature/Exit-interview-questions-to-ask-departing-employees">employee exit interviews</a>, and HR should investigate any concerns raised by departing employees about their manager's behavior.</p> </section> <section class="section main-article-chapter" data-menu-title="3. Too much work for employees"> <h2 class="section-title"><i class="icon" data-icon="1"></i>3.&nbsp;&nbsp;&nbsp;&nbsp; Too much work for employees</h2> <p>Many jobs come with particularly busy periods, but <a href="https://www.techtarget.com/whatis/podcast/Overcoming-employee-burnout-Leadership-in-the-digital-age">employees will become burned out</a> if an unrealistic workload becomes the norm. Some factors that can lead to burnout include understaffing and expecting employees to be available by email or text outside of normal business hours.</p> <p>One way CHROs can alleviate employee burnout is by mandating training for managers about realistic deadlines and fair workloads. CHROs should also review head count if understaffing becomes a perennial problem and establish policies to promote work-life balance, including encouraging employees to take paid time off and instructing managers to avoid texting or emailing their teams outside of normal work hours.</p> </section> <section class="section main-article-chapter" data-menu-title="4. Lack of company response to employee surveys"> <h2 class="section-title"><i class="icon" data-icon="1"></i>4.&nbsp;&nbsp;&nbsp;&nbsp; Lack of company response to employee surveys</h2> <p>Sending out surveys to gauge employee engagement and soliciting employee feedback during town halls or department meetings make employees feel like their concerns are being heard. However, employee experience can be negatively affected if the company fails to address workers' concerns <a href="https://www.greatplacetowork.ca/images/storage/Youve_Sent_Out_an_Employee_Engagement_Survey__-_Now_What.pdf">after the surveys</a> or meetings.</p> <p>Addressing every employee concern is not always possible, and if changes in a certain area cannot happen, the CHRO and other leaders should be candid with employees about why. Communicating about a lack of change will deliver a more positive employee experience than if leaders listen to concerns during a meeting and fail to respond.</p> <p><i>Lynda Spiegel is a freelance writer and former global HR executive for financial services, telecommunications and SaaS companies.</i></p> </section> Delivering a good employee experience is critical for retaining employees. Explore key challenges that can hinder employee experience and how CHROs can guard against them. https://cdn.ttgtmedia.com/rms/onlineimages/keys_a150731005.jpg https://www.techtarget.com/searchhrsoftware/tip/How-CHROs-can-prevent-employee-experience-challenges Tue, 02 Jun 2026 10:07:00 GMT <p>Employee burnout can happen at any company, and CHROs must take action to help prevent it before it happens.</p> <p>Reaching out to employees for suggestions and encouraging proper technology use can help alleviate employee burnout, among other strategies. Companies must then follow through to show employees that they care about burnout prevention.</p> <p>Here's a deeper look at what causes employee burnout and what employers can do to alleviate it.</p> <section class="section main-article-chapter" data-menu-title="How technology causes, and alleviates, burnout"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How technology causes, and alleviates, burnout</h2> <p>Technology makes it possible to work from home, but it also <a href="https://hbr.org/2017/04/employee-burnout-is-a-problem-with-the-company-not-the-person" target="_blank" rel="noopener">contributes to</a> employee burnout.</p> <p>The expectation of constant connectivity and video burnout are particularly toxic stressors.</p> <p>Chat and collaboration apps, e-mail and even video conferences can increase productivity and engagement, but companies can also use them too much, said Diane Schwartz, CEO of Ragan Communications, a learning and development company.</p> <p>"Zoom is a blessing and a curse," Schwartz said.</p> <p>Here are some other strategies employers can use to prevent burnout.</p> </section> <section class="section main-article-chapter" data-menu-title="Ask employees -- and take action"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Ask employees -- and take action</h2> <p>Organizations should start by <a href="https://www.techtarget.com/searchhrsoftware/tip/15-essential-employee-engagement-survey-questions">reaching out to employees</a>.</p> <p>Emplify leaders used the company's employee engagement survey platform to take the workforce's pulse in May 2020. Its employees needed official time off, according to the data.</p> <p>"[Encouraging them to] take a break when they needed it [wasn't enough]," said Adam Weber, executive coach at Adam Weber Coaching and former chief people officer at employee engagement software company Emplify.</p> <p>Emplify gave its employees every Friday off for a month, he said. Because everyone was off-duty, employees didn't have to manage emails and chats, which helped alleviate the feeling of constant connectivity.</p> </section> <section class="section main-article-chapter" data-menu-title="Use reminder features"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Use reminder features</h2> <p>In some cases, the remote work platforms that can <a href="https://www.techtarget.com/searchhrsoftware/news/252491994/As-employee-stress-rises-HR-focuses-on-mental-health">contribute to stress</a> can also be used to prevent employee burnout.</p> <p>For example, remote scheduling systems often have reminder features, said Jon Hill, managing partner at The Energists, an executive search firm based in Houston. Companies can set up reminders for employees to take regular breaks.</p> <p>Employers can also use the feature to make sure employees aren't working more than their contracted number of hours, Hill said. Companies that track time can use that same system to examine how much work team members are putting in. They can keep a particularly close eye on high performers and salaried employees who won't receive automatic compensation for their extra time.</p> </section> <section class="section main-article-chapter" data-menu-title="Align technology with company culture"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Align technology with company culture</h2> <p>Tech tools like behavior analytics and AI have limitations just like any other software or system.</p> <p>The tools can help identify trends and the employees at risk for burnout, but they also need to fit in with the organization's culture and structure, said Marie-Helene Pelletier, an independent work psychologist and executive coach. For example, there may be stigma attached to using particular tools. Employers will need to address that or pursue other strategies.</p> </section> <section class="section main-article-chapter" data-menu-title="Offer de-stressing options"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Offer de-stressing options</h2> <p>HR leaders can get creative about the stress-reduction programs they propose.</p> <p>For example, wellness tech, <a href="https://www.techtarget.com/searchhrsoftware/feature/The-nine-best-ways-to-boost-workplace-mindfulness-success">such as mindfulness apps</a>, can help employees create islands of peace through the day. And some companies target one of the top stressors for many workers by offering financial wellness programs.</p> </section> <section class="section main-article-chapter" data-menu-title="Create a burnout dialogue"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Create a burnout dialogue</h2> <p>The best strategy for preventing employee burnout is to create a culture where employees can speak openly about burnout with their managers.</p> <p>"Pretending burnout isn't happening will only make it worse," Weber said.</p> <p>Companies need to <a href="https://www.techtarget.com/searchhrsoftware/feature/HR-can-help-support-employees-mental-health-well-being">acknowledge that burnout happens</a>, then foster employee-manager dialogue.</p> </section> Preventing employee burnout can be difficult, but CHROs should encourage their organizations to put strategies in place that help employees before they hit that point. https://cdn.ttgtmedia.com/visuals/searchFinancialApplications/software_strategy/financialapplications_article_018.jpg https://www.techtarget.com/searchhrsoftware/feature/How-to-prevent-employee-burnout Thu, 21 May 2026 12:00:00 GMT <p>AI hiring tools are moving closer to the interview itself.</p> <p>For years, recruiting software has helped employers post jobs, manage applicants, schedule interviews and organize candidate information. Newer tools go further. They can conduct interviews, analyze answers, create transcripts, score or summarize candidates and show recruiters dashboards that shape what they review next.</p> <p><a href="https://www.techtarget.com/searchhrsoftware/news/366642560/Amazon-Connect-Talent-AWS-enters-AI-interviewing-market">Amazon Connect Talent is a useful example</a> of where the market is heading. The tool is not just helping recruiters schedule interviews or organize applicants. It can also conduct interviews, analyze candidate answers, create transcripts and show recruiters dashboards and deeper analysis they can use to move candidates through the process faster.</p> <p>That makes sense for high-volume hiring. Employers filling warehouse, retail, restaurant, truck driver or contact center roles often need to screen large numbers of candidates quickly. Candidates in those markets might also move on if they do not hear back fast enough. AI interviewing can help recruiters keep up with that volume.</p> <p>But there is a difference between using AI around the hiring process and putting AI inside the interview itself.</p> <p>Once software is conducting, summarizing or analyzing the interview, employers need to know how much the AI shaped what the recruiter sees next. A human interviewer might notice context, follow-up nuance, unusual experience, candidate questions or role-specific judgment that an automated process could miss.</p> <p>That does not mean AI interviewing lacks value. It does mean employers need a clear decision trail.</p> <p>If an AI tool summarizes answers or presents candidates in a dashboard, the company should be able to reconstruct what was asked, what the candidate said, what the AI highlighted, what the recruiter reviewed and where the final human judgment entered the process.</p> <p>The risk is not only that AI could contribute to the wrong hiring decision. It is that the employer might not be able to explain how the decision was shaped.</p> <section class="section main-article-chapter" data-menu-title="Human judgment needs a boundary"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Human judgment needs a boundary</h2> <p>As with nearly every part of the enterprise software stack, AI is becoming a mainstay in HR software. And, as the Amazon Connect Talent example shows, major vendors are moving deeper into hiring workflows.</p> <p>But there is a big difference between using AI to widen recruiting bandwidth and using AI to make final hiring decisions.</p> <p>Tools such as Amazon Connect Talent can help speed up scheduling, screening, interview analysis and recruiter review. That can be valuable, especially when companies are dealing with high-volume hiring.</p> <blockquote class="main-article-pullquote"> <div class="main-article-pullquote-inner"> <figure> The risk is not only that AI could contribute to the wrong hiring decision. It is that the employer might not be able to explain how the decision was shaped. </figure> <i class="icon" data-icon="z"></i> </div> </blockquote> <p>But responsible enterprises and HR software vendors should not position AI as the final decision-maker. Nor should they treat human review as a rubber stamp on an AI recommendation.</p> <p>There has to be a <a href="https://www.techtarget.com/searchhrsoftware/news/366611916/At-HR-Tech-experts-consider-future-of-human-judgment">human judgment boundary</a> -- probably several of them.</p> <p>Recruiters and hiring managers need to be involved before the AI interview, after it and at any major point where a candidate advances, stalls or leaves the process.</p> <p>That matters because AI helps shape what humans see. Depending on the tool and its settings, software can summarize answers, highlight certain responses, score candidates or package interview results in ways that influence the next step.</p> <p>Keeping humans in the loop should mean more than passive oversight. It should mean active review, follow-up questions and responsibility for the final call.</p> <p>The decision trail should show not only what the AI did, but what the human reviewed and decided. That human justification is necessary because hiring decisions affect real candidates, carry legal and bias risks and can be challenged by applicants, managers, HR leaders or regulators after the fact.</p> <p>In AI hiring, "human in the loop" only matters if the human role is specific enough to see, document and defend.</p> </section> <section class="section main-article-chapter" data-menu-title="Assessments need evidence, not black-box trust"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Assessments need evidence, not black-box trust</h2> <p>There is a difference between using AI as part of a useful hiring assessment and using it as a black-box hiring shortcut.</p> <p>The first approach plays more to AI's strengths: pattern recognition, structured analysis, scoring support and statistical comparison. The second gets much more uncomfortable, especially if AI starts carrying most of the weight in decisions that should still involve human judgment.</p> <p>Assessments can be helpful, particularly for high-volume or high-turnover roles. But their usefulness depends on whether employers understand what is being measured, how the assessment was built and how the results should be interpreted. A score by itself is not enough.</p> <p>That is where the decision trail begins before the final hiring decision. It should run from the science behind the assessment to the job description, assessment design, scoring settings, recruiter review, exceptions, overrides and the final human decision.</p> <p>HireVue's Assessment Builder is a useful example. The company says it uses AI to help recruiters and hiring managers <a href="https://www.techtarget.com/searcherp/podcast/Understanding-the-science-behind-AI-based-hiring-assessments">create role-specific assessments</a>, while grounding that work in industrial-organizational psychology and validation studies. The point is not that AI disappears from the process. It is that AI must be used within a system that employers understand well enough to explain.</p> <p>A validated assessment can still be misused if recruiters or managers do not understand what the score means, what it does not mean and how much weight it should carry. The decision trail should make that visible. It should show whether the assessment was used as one input, as a screening cutoff, as a ranking mechanism or as a major factor in deciding who moved forward.</p> <p>The issue is not whether AI can support hiring. The issue is whether employers can explain the evidence, the process and the human judgment around it.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/the_good_and_not_so_good_of_ai_recruiting_tools-f.png "> <img data-src="https://www.techtarget.com/rms/onlineimages/the_good_and_not_so_good_of_ai_recruiting_tools-f_mobile.png " class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/the_good_and_not_so_good_of_ai_recruiting_tools-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/the_good_and_not_so_good_of_ai_recruiting_tools-f.png 1280w" alt="Infographic showing applications, benefits and drawbacks of AI recruiting tools." height="246" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>AI recruiting tools can automate screening, communication and candidate sourcing, but employers still need human review, bias controls and a clear record of how candidates move through the process. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Buyer responsibility starts before the first interview"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Buyer responsibility starts before the first interview</h2> <p>In the end, the responsibility for when and how to use AI in hiring belongs to the organization doing the hiring.</p> <p>AI now shows up throughout recruiting in the form of chatbots, GenAI tools, copilots, semi-agentic tools and more autonomous agents. These tools can answer candidate questions, draft job descriptions, summarize resumes, generate interview questions, schedule interviews, screen applicants, rank candidates and recommend next steps.</p> <p>But the more those <a href="https://www.techtarget.com/searchhrsoftware/tip/Top-AI-recruiting-tools-and-software-of-2022">tools touch the hiring process</a>, the more employers need to understand what the AI is doing and how much influence it has. That responsibility starts before implementation.</p> <p>Employers need to know what kind of AI is embedded in the recruiting tool, what role it plays, what level of autonomy it has and where human review is required. A chatbot that answers candidate questions creates a different risk profile than a tool that ranks applicants or summarizes AI-led interviews for recruiter review.</p> <p>This is why the decision trail begins before the first candidate enters the system. It starts with buying and configuration decisions: What hiring problem is the tool supposed to solve? Where is the company comfortable using AI? What decisions should always stay with people? What outputs must be documented? And who is responsible for explaining how the tool was used?</p> <p>Transparency must also extend within the organization. HR often supports hiring managers in other departments, so CHROs and recruiting leaders need to ensure managers understand where AI is being used, what they can rely on, and what they still need to judge for themselves.</p> <p>AI hiring governance should begin during product selection and configuration. HR leaders need to know what the tool does, managers need to understand what they can rely on, and recruiters need enough context to evaluate the evidence they are using. Otherwise, AI can become part of the hiring process before anyone has clearly defined how much influence it should have.</p> <div class="extra-info"> <div class="extra-info-inner"> <h3 class="splash-heading"></h3> <h3 class="splash-heading">How AI shows up in recruiting tools</h3> <p>AI hiring tools do not all work the same way. Employers should understand which type of AI is being used and the level of autonomy it has.</p> <ul class="default-list"> <li><b>Chatbots</b> can answer candidate questions, guide applicants through basic steps, screen for minimum qualifications and schedule interviews.</li> <li><b>Copilots</b> can help recruiters draft job descriptions, generate interview questions, summarize candidate information and suggest next steps.</li> <li><b>GenAI tools</b> can create job postings, emails, offer letters, rejection letters, interview guides and candidate summaries.</li> <li><b>Semi-agentic tools</b> can run multi-step recruiting workflows with human approval, such as sourcing, outreach, screening and scheduling.</li> <li><b>More autonomous agents</b> can act across multiple recruiting steps with less direct prompting, which raises the stakes for oversight, permissions and auditability.</li> </ul> <ul class="default-list"></ul> <p>The more autonomy a tool has, the more important it becomes to document what the AI did, what humans reviewed and who owned the final hiring decision.</p> </div> </div> </section> <section class="section main-article-chapter" data-menu-title="Applicant data is part of the decision trail"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Applicant data is part of the decision trail</h2> <p>Gathering and protecting sensitive applicant data is already part of recruiting, whether or not AI is involved. Employers need to know where that data lives, who can access it, how long it is retained and how it is protected.</p> <p>AI raises the stakes because hiring tools can now create transcripts, summaries, scores, dashboards and other records that shape how candidates are evaluated. If those processes are opaque, highly automated or weakly supervised, the organization has more than a data protection issue. It also has an accountability issue.</p> <p>That makes <a href="https://www.techtarget.com/searchhrsoftware/tip/How-CHROs-CISOs-can-partner-to-protect-job-applicant-data">applicant data governance</a> part of the decision trail. HR, IT, security and legal teams need to help define the rules before the tool is deployed, then maintain and enforce them throughout the hiring process. That includes access controls, retention policies, vendor requirements, security reviews and clear accountability for how AI-generated hiring records are handled.</p> <p>This is not the same as deciding whether a candidate should be hired. But it is part of the governance foundation that allows AI hiring tools to be used responsibly in the first place.</p> </section> <section class="section main-article-chapter" data-menu-title="The final call still needs an owner"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The final call still needs an owner</h2> <p>AI hiring tools can make recruiting faster, more scalable and, in some cases, more structured. They can help recruiters manage large applicant pools, standardize parts of the interview process and surface information that might otherwise take days or weeks to collect.</p> <p>But faster hiring still needs to be explainable. If AI conducts an interview, summarizes a transcript, scores an assessment or recommends the next step, the employer needs more than a dashboard. It needs a record of what the tool did and how people used it. That means knowing how the tool was configured, what the candidate experienced, what the AI highlighted, what the recruiter questioned and what evidence supported the final decision.</p> <p>Those are not just compliance questions. They are hiring quality questions.</p> <p>A decision trail does not have to slow hiring to a crawl. Done well, it should make the process easier to trust. Recruiters get a clearer record. Hiring managers get better context. HR leaders get more consistency. Candidates get a process that is easier to explain if questions arise.</p> <p>AI might help hiring move faster, but the final decision still needs a human owner. The more AI shapes the path to that decision, the more important it becomes to show how the decision was made.</p> <p><i>James Alan Miller is a veteran technology editor and writer who leads Informa TechTarget's Enterprise Software group. He oversees coverage of ERP &amp; Supply Chain, HR Software, Customer Experience, Communications &amp; Collaboration and End-User Computing topics.</i></p> </section> AI hiring tools can speed interviews and assessments, but employers need a decision trail that shows what AI shaped, what humans reviewed and who owned the final call. https://cdn.ttgtmedia.com/rms/onlineimages/collab_a275903017.jpg https://www.techtarget.com/searchhrsoftware/feature/AI-hiring-needs-a-decision-trail Tue, 19 May 2026 10:01:00 GMT <p>Workday expanded the reach of its Sana AI self-service agent for HR into Microsoft Copilot.</p> <p>Over the last few years, the company has built its core HR and finance functionality into Teams, Slack and other AI touchpoints its customers' employees use every day while also <a href="https://www.techtarget.com/searchhrsoftware/news/366640361/Workdays-new-old-CEO-reveals-Sana-agentic-AI-updates">expanding the capabilities</a> of its <a href="https://www.techtarget.com/searchhrsoftware/news/366631340/Workday-previews-a-dozen-AI-agents-acquires-Sana">Sana agentic AI</a> to automate tasks.</p> <p>The company's overall plan is to deploy its technology -- and AI tools -- to meet employees where they work, rather than making them bounce from an employee portal to an email, chat or help desk ticket to answer routine questions, said Laila Almounaier, vice president of connected experiences at Workday.</p> <p>"It's about, in this example, Copilot being able to securely hand off to our agent -- which executes the task in Workday -- using the customer's existing approvals, its policies, its processes -- and send those results back into Copilot so workers can stay in the tools they're using," Almounaier said.</p> <p>The <a href="https://www.techtarget.com/searchhrsoftware/news/366625056/Workday-adds-seven-agents-to-Illuminate-platform">Sana self-service agent</a> embedded in Copilot can answer plain-language questions about vacation balances, family leave and travel policies, file time-off requests, pull up pay statements and handle expense-report questions, among a host of other user-configured tasks. The agent also enables managers to initiate performance reviews and approve timesheets.</p> <p>Back in the Workday platform, the agent applies user-configured workflows, data security, approvals and business rules to perform the various tasks.</p> <figure class="main-article-image half-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/workday-microsoft_copilot-h.jpg"> <img data-src="https://www.techtarget.com/rms/onlineimages/workday-microsoft_copilot-h_half_column_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/workday-microsoft_copilot-h_half_column_mobile.jpg 960w,https://www.techtarget.com/rms/onlineimages/workday-microsoft_copilot-h.jpg 1280w" alt="Screenshot of Sana AI for HR agent embedded in Microsoft Copilot" data-credit="Workday" height="158" width="280"> <figcaption> <i class="icon pictures" data-icon="z"></i>The Sana AI self-service agent can field questions and handle employee tasks, such as time-off requests, directly within Microsoft Copilot's interface. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>"There's no margin for error when you're talking about this level of data," Almounaier said. "By bringing our self-service agent into Microsoft Copilot, we're not just answering questions -- we're safely executing the transactions that touch people and money on [guard]rails that customers already trust."</p> <p>For IT staff, the Copilot integration is an app available in the Microsoft Marketplace and requires no separate logins, deployment or licensing.</p> <p>Workday's Copilot integrations are the latest confirmation of a trend with many different enterprise IT vendors, said Holger Mueller, analyst at Constellation Research. Embedding Workday -- or anyone else's -- functionality in assistants like Copilot or collaboration apps such as Microsoft Teams or Salesforce's Slack hands over the interface to a third party.</p> <p>But these large back-office app vendors are willing to make that tradeoff in the agentic AI era.</p> <p>"At the end of the day, the customer pays the bills, and that means the customer has to win -- which happens when employees win," Mueller said. "It's a good thing to see Workday being available in Copilot. There's nothing to lose for Workday, as the employee is still a fully licensed Workday user."</p> <p><i>Don Fluckinger is a seasoned B2B technology journalist with over 30 years of experience, specializing in enterprise IT, digital experience and content management. As a senior news writer at Informa TechTarget, he delivers award-winning analysis that helps IT and business leaders navigate complex technologies to enhance customer and employee experiences. Got a tip? </i><a href="mailto:don.fluckinger@informatechtarget.com?subject=Tip%20from%20article" target="_blank" rel="noopener"><i>Email him</i></a><i>.</i></p> Employees can get answers to questions about vacations, expenses and other topics from the Copilot query line. https://cdn.ttgtmedia.com/rms/onlineimages/wfh_a382773067.jpg https://www.techtarget.com/searchhrsoftware/news/366643021/Workday-embeds-Sana-AI-for-HR-inside-Microsoft-Copilot Wed, 13 May 2026 15:35:00 GMT <p><i>ORLANDO, Fla. -- AI is the most prominent topic in the tech world, and many HR departments are being asked to assume a major role in AI programs at their company, according to SAP SuccessFactors chief product officer Daniel Beck.</i></p> <p><i>SAP announced various new AI technology at its 2026 Sapphire conference, including Joule AI assistants that will focus on areas including </i><a href="https://www.techtarget.com/searchhrsoftware/definition/human-capital-management-HCM"><i>human capital management</i></a><i>. The announcement comes as HR departments attempt to implement AI and figure out which HR tasks will be performed by AI and which ones still require human judgment.</i></p> <p><i>Informa TechTarget spoke with Beck at Sapphire about HR's current challenges, the most common </i><a href="https://www.techtarget.com/searchhrsoftware/tip/HR-AI-use-cases-that-leaders-should-know"><i>AI HR use cases</i></a><i> and how the workforce itself is changing.</i></p> <p><strong>Editor's note:</strong><i> This interview was edited for length and clarity.</i></p> <p><b>What are some of the biggest challenges in the HR world right now?</b></p> <p><strong>Daniel Beck:</strong><b> </b>I think HR is really facing this dynamic time of, what does it mean to be an HR organization in an era where AI is joining the workforce?</p> <p>HR is being asked, "What does it mean to bring AI to our company and change our workforce, and how does that affect our culture?" HR is being asked to take a leadership role there. At least that's what I'm seeing. I think it's exciting, but it is challenging.</p> <p><b>What are some of the top use cases for AI in HR right now?</b></p> <p><strong>Beck:</strong> We're rolling out <a href="https://www.techtarget.com/searchsap/news/366624180/SAP-sits-Joule-at-helm-of-apps-data-flywheel">15 assistants</a> across the entire SuccessFactors suite with 62 agents therein. So what you're going to see is, essentially, AI across the SuccessFactors suite.</p> <p>There's everything from features and capabilities like payroll, which is a <a href="https://www.techtarget.com/searchhrsoftware/tip/Uses-for-AI-in-payroll-processing">good area for assistants</a> to come and help, as well as more talent-facing things, like how do I recruit with AI?</p> <p>There's the category we would call HR self-service, or HR service, which is: You're coming back from leave, you have basic questions that previously would have been a help desk ticket or HR-related ticket. Now you can just sort of answer them yourself or get an agent to help answer. And then, if it's either more sensitive or if I'm stuck, then populate the case for me and get me some help.</p> <p><b>What should companies do to guard against such potential issues as </b><a href="https://www.techtarget.com/searchhrsoftware/feature/Challenges-of-AI-in-recruitment"><b>AI bias in recruiting</b></a><b>?</b></p> <p><strong>Beck:</strong> We take this stuff super-seriously. We test everything we put in front of a customer to reduce bias. We did an ISO 42001 certification. The last thing we want for our customers is to be in the headlines for the wrong reasons.</p> <p>I think a lot of vendors have taken shortcuts on the data they use for recruiting, to find candidates and match candidates. I think half the major vendors in the market have class-action lawsuits against them. So that's exactly where we don't want to be with our customers.</p> <p>We don't want AI spitting out recommendations of who to transfer, who to hire, without a human in the loop.</p> <p><b>How has the </b><a href="https://www.techtarget.com/searchhrsoftware/news/366628460/SAP-hopes-SmartRecruiters-buy-will-bolster-SuccessFactors"><b>SmartRecruiters acquisition</b></a><b> affected SuccessFactors?</b></p> <p><strong>Beck:</strong> A lot of clients are clamoring to get to SmartRecruiters. So I'd say it's going well.</p> <p>Starbucks just bought SmartRecruiters at the end of Q1. They want to be live by, I want to say, November. We're seeing that: "I want it, and I want to go live in a very short timeline." So that's exciting for us.</p> <p><b>How does the fact that S/4HANA doesn't have its own HCM module affect how current or potential migrators to S/4HANA view it as an option, and do a lot of customers who move to S/4HANA also adopt SuccessFactors?</b></p> <p><strong>Beck:</strong> We want them to use S4 for finance and SuccessFactors for HR. We'd love that attach rate to be higher. We're actively working on that.</p> <p>I'll give you an example -- I'll leave the company nameless. They have S4, and they have a third-party HCM solution. Taking data from your HR system of record, your finances of record, and stitching it all together and feeding it into a payroll product is a bad use of resources.</p> <p>It's such a headache for them to replicate all that data, just for payroll. And then they say, "You know what? SAP can do all that for me."</p> <p><i>Molly Clancy is the senior site editor for Informa TechTarget's SearchHRSoftware and SearchERP sites.</i></p> SAP SuccessFactors chief product officer Daniel Beck discusses SAP's acquisition of SmartRecruiters, AI bias in recruiting and how he thinks HR will change in the age of AI. https://cdn.ttgtmedia.com/rms/onlineimages/chatbot_g1144033172.jpg https://www.techtarget.com/searchhrsoftware/news/366643078/How-SAP-sees-the-future-of-HR-in-the-age-of-AI Wed, 13 May 2026 10:55:00 GMT <p>After a software launch, the ownership question often gets harder.</p> <p>IT might own the platform. Business leaders might own the outcomes. HR or <a href="https://www.techtarget.com/searchcio/definition/change-management">change management</a> teams might help with communication and training. Managers might be expected to reinforce new behaviors. Employees might be the first to see where the new process breaks down.</p> <p>But if no one owns the handoff between those roles, adoption can stall even when the system itself is working.</p> <p>That is why software adoption should not be treated as the final step of implementation. It is the point when the organization has to prove that the software changed how work gets done.</p> <p>A system can be live and still leave a lot of unfinished work behind it. People might be using it unevenly, training may not match the real questions employees have, and workflows might need to change once the software is in daily use. At some point, someone has to be responsible for saying whether the system is doing what the company bought it to do.</p> <p><a href="https://www.techtarget.com/searcherp/feature/Software-change-stalls-when-adoption-begins">Software change often stalls between rollout and real adoption</a>, especially when companies treat deployment as the end of the project rather than the beginning of operational change.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/change_management_strategy_in_action-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/change_management_strategy_in_action-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/change_management_strategy_in_action-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/change_management_strategy_in_action-f.png 1280w" alt="Five-step change management strategy diagram" height="218" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>The 5 steps of change management strategy include identifying change situations, developing policy, defining process, conducting review and communicating process. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <section class="section main-article-chapter" data-menu-title="How to tell if software adoption is stuck"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to tell if software adoption is stuck</h2> <p>Software adoption does not always fail loudly. In many cases, the signs are quiet and familiar.</p> <p>Employees might still rely on side spreadsheets, extra emails or informal workarounds because the new workflow does not fit the way work actually happens. Managers might ask for information outside the system because they do not trust the data or cannot get what they need from the platform. Employees might log in because they have to but still complete the real work somewhere else.</p> <p>Training is another place where adoption can quietly break down. A launch webinar or one round of documentation might be enough to introduce the system, but it usually is not enough to help employees deal with the real questions that come up once they start using it. Those questions often involve exceptions, role-specific tasks, confusing handoffs or small workflow problems that were not obvious before go-live. A system can be available to everyone and still be understood well by very few people.</p> <p>Feedback also matters. If employees are raising issues but those problems never reach the people who can adjust workflows, documentation, system configuration or training, the organization might keep treating adoption as an employee behavior problem when it is really a process design problem.</p> <p>This is especially important in HR software projects, where employee feedback during HRMS projects can reveal whether the system fits real employee and manager workflows.</p> <p>The issue is not always that the technology failed. More often, the organization bought the system to change something, but the work around the system has not caught up.</p> <blockquote class="main-article-pullquote"> <div class="main-article-pullquote-inner"> <figure> A software project can look finished when the system goes live, but adoption can still be incomplete. </figure> <i class="icon" data-icon="z"></i> </div> </blockquote> </section> <section class="section main-article-chapter" data-menu-title="Deployment metrics are not adoption metrics"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Deployment metrics are not adoption metrics</h2> <p>Go-live dates, licenses, logins and training completion rates can show that a system has been deployed. They do not necessarily show that the software is improving work.</p> <p>A stronger adoption view looks at whether the system is being used in the right workflows, by the right people, for the right reasons. Leaders should ask whether the software reduced friction, improved handoffs, eliminated duplicate work, made information easier to find or helped teams make better decisions.</p> <p>The right metrics will vary by system.</p> <p>For ERP, leaders might look beyond the initial <a href="https://www.techtarget.com/searcherp/tip/ERP-implementation-steps-for-success">ERP implementation</a> to process consistency, data quality, reduced manual work, fewer side spreadsheets or better reporting.</p> <p>For HR software, stronger<b> </b><a href="https://www.techtarget.com/searchhrsoftware/post/Strategies-for-improving-HR-technology-adoption">HR technology adoption</a> might show up in manager self-service, employee completion rates, onboarding efficiency or whether employees can complete routine tasks without extra support.</p> <p>For communications and collaboration platforms, they might look beyond active users and ask whether the platform improved response times, meeting quality, handoffs or service coordination.</p> <p>The common point is that adoption metrics should connect to the reason the software was bought. If the organization cannot explain how the system changed the work, it might be measuring deployment instead of adoption.</p> <div class="extra-info"> <div class="extra-info-inner"> <p></p> <h3 class="splash-heading">Post-launch software adoption checklist</h3> <p>A post-launch adoption plan should answer these questions:</p> <ol class="default-list"> <li><b>Who owns the business outcome?</b><b><br></b>The software should connect to a clear operational, financial, employee experience or customer experience goal.<b> </b></li> <li><b>Who owns the workflow changes?</b><b><br></b>Business leaders and managers should know which processes are expected to change after launch.<b> </b></li> <li><b>Who owns training after launch?</b><b><br></b>Training should continue as employees encounter edge cases, exceptions and role-specific questions.<b> </b></li> <li><b>Who collects and acts on user feedback?</b><b><br></b>Employees need a way to surface friction, and leaders need a process for deciding what to fix.<b> </b></li> <li><b>Who decides whether adoption is working?</b><b><br></b>Usage data can help, but adoption should also be measured against workflow improvements and business outcomes.</li> </ol> <p>If the answers are unclear, adoption can stall even when the system itself is working.</p> </div> </div> </section> <section class="section main-article-chapter" data-menu-title="Software adoption usually has many partial owners"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Software adoption usually has many partial owners</h2> <p>Software adoption usually requires shared ownership, but that ownership can become unclear if handoffs are not defined.</p> <p>IT plays a central role. It deploys, integrates, secures and supports the system. But IT usually cannot be the only group responsible for whether employees change how they work. That work often requires close HR and IT collaboration when software adoption affects employee experience as much as system access.</p> <p>Business leaders need to define what the software is supposed to improve. They should clarify which processes should change, what outcomes matter and how the system fits the work their teams actually perform.</p> <p>HR or change management teams can help with <a href="https://www.techtarget.com/searchhrsoftware/tip/How-HR-can-serve-a-critical-role-in-change-management">communication, training, employee adjustment and readiness</a>.</p> <p>Managers play a different role. They see whether employees are using the system as intended, where old habits remain and where the new process is creating confusion. They are often closest to the practical adoption problems that do not show up in a project dashboard.</p> <p>Employees also need a way to surface friction. They are the ones who encounter missing documentation, awkward workflows, unnecessary steps, confusing interfaces and process gaps.</p> <p>The problem is not that one group owns adoption and another does not. The problem is that adoption often moves across all these groups without a clear owner for the transitions between them.</p> <blockquote class="main-article-pullquote"> <div class="main-article-pullquote-inner"> <figure> The problem is that adoption often moves across all these groups without a clear owner for the transitions between them. </figure> <i class="icon" data-icon="z"></i> </div> </blockquote> </section> <section class="section main-article-chapter" data-menu-title="The handoff needs an owner"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The handoff needs an owner</h2> <p>The most important adoption question might not be, "Who owns the software?"</p> <p>It might be, "Who owns the handoff between the software and the work?"</p> <p>Someone has to make sure feedback reaches the right team. Someone has to decide whether a problem is a training issue, a workflow issue, a configuration issue or a business process issue. Someone has to keep measuring whether the software is solving the problem it was bought to address.</p> <p>That does not mean one executive or one department should own every part of adoption. But it does mean the organization needs an <a href="https://www.techtarget.com/searcherp/feature/Who-owns-the-outcome-Accountability-in-the-hybrid-enterprise">ownership model</a> that connects IT, business leaders, HR, managers and employees after launch.</p> <p>That ownership model should answer some basic questions after go-live: Who is watching adoption? Who is collecting user complaints and deciding which ones matter most? Who can change the workflow if the process is not working? Who keeps training and documentation current? And who is responsible for saying, months later, whether the software is actually solving the problem it was bought to fix?</p> <p>Without that structure, deployment can become the end of the project even though adoption has barely started.</p> <p>Software adoption does not end when the system goes live. It becomes real when employees understand the new process, managers reinforce it, workflows adjust, feedback is acted on and leaders can show that the software changed the work it was supposed to improve.</p> <p><i>James Alan Miller is a veteran technology editor and writer who leads Informa TechTarget's Enterprise Software group. He oversees coverage of ERP &amp; Supply Chain, HR Software, Customer Experience, Communications &amp; Collaboration and End-User Computing topics.</i></p> </section> A platform can go live while adoption remains unfinished. Leaders need to know who owns the handoff between software rollout and real workflow change. https://cdn.ttgtmedia.com/rms/onlineimages/collab_a120705009.jpg https://www.techtarget.com/searchhrsoftware/feature/Who-owns-software-adoption-after-launch Tue, 12 May 2026 15:28:00 GMT <p>AWS has entered the HR tech market, albeit with an AI interviewing tool and not a full-on HCM platform.</p> <p>Amazon Connect Talent, released in preview, is a combination <a href="https://www.techtarget.com/searchenterpriseai/definition/agentic-AI">agentic AI</a> and analytics tool that conducts interviews on behalf of recruiters, analyzes the answers, and dashboards the results so recruiters can take action and make offers. It also provides transcripts and deeper dive analyses of interviews to users when needed.</p> <p><a href="https://www.techtarget.com/searchaws/definition/Amazon-Connect">Amazon Connect</a> -- now renamed Amazon Connect Customer -- launched nine years ago as a bundle of contact center technologies that has grown into a full-fledged contact center-as-a-service (<a href="https://www.techtarget.com/searchcustomerexperience/definition/contact-center-as-a-service-CCaS">CCaaS</a>) suite. The Amazon Connect brand is now positioned as a horizontal offering for all industries, not just contact centers, said Pasquale DeMaio, Amazon Connect vice president at AWS.</p> <p>To that end, earlier this week at its What's Next With AWS marketing event in San Francisco, AWS <a target="_blank" href="https://www.aboutamazon.com/news/aws/amazon-connect-ai-business-set" rel="noopener">expanded the offerings</a> under Amazon Connect to include the HR hiring tool and Amazon Connect Decisions, a bundle of supply chain tools. Last year, Amazon Connect Health and Amazon Bio Discovery launched for those distinct healthcare verticals.</p> <p>AI interviewing is a <a href="https://www.techtarget.com/searchhrsoftware/news/252471753/Hiring-algorithms-prove-beneficial-but-also-raise-ethical-questions">well-established tool</a> for recruiters to handle high volumes of interviews for roles such as warehouse workers, retail and restaurant jobs, and contact center agents. In the last decade, what started as chatbot interviews has evolved into AI agents that can put candidates through the paces of a job during the interview and score skills, experience and temperament for a particular position.</p> <p>Independent HR technology analyst Josh Bersin was surprised that AWS jumped into the AI interviewing market now, because it's mature and already crowded with both large HCM vendors offering similar features -- and many smaller companies, too, that offer integrations to the big platforms.</p> <p>"Google tried this. Facebook tried it before they were Meta. A lot of companies tried to get into the HR recruiting domain because they thought it was so easy," Bersin said. "But it's not easy, because you're selling it to HR people who want to customize it for their companies. I'm not saying it isn't good technology -- it probably is [good technology] -- but I wonder if it's worth Amazon's time."</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/connect_talent_recruiter-f.jpg"> <img data-src="https://www.techtarget.com/rms/onlineimages/connect_talent_recruiter-f_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/connect_talent_recruiter-f_mobile.jpg 960w,https://www.techtarget.com/rms/onlineimages/connect_talent_recruiter-f.jpg 1280w" alt="Screenshot of AWS Amazon Connect Talent AI interviewing tool recruiter view" data-credit="AWS" height="420" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>AWS's Amazon Connect Talent AI interviewing tool concatenates interview results in a chat interface for recruiter review. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <section class="section main-article-chapter" data-menu-title="Evolution of AI interview tech"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Evolution of AI interview tech</h2> <p>In general, the pluses of this technology include 24/7 availability at the interviewee's convenience; analytics that help compliance and iron out human bias toward one demographic or another -- and also has fewer issues with accents; offers interviewees the ability to re-record answers they want to restate; and can interview many candidates at once, therefore shortening the screening process of 100 candidates from weeks into days -- or hours.</p> <p>Prospective employees report that they appreciate how such interview automation speeds up the hiring process -- i.e., they don't wait a week [to hear back from] McDonald's or Starbucks before moving on to the next opportunity, Bersin said. McDonald's McHire uses bots from Paradox; Starbucks uses a bot developed by Sapia.ai.</p> <p>"It's very powerful [technology], because if you're recruiting for a high-turnover role -- like a truck driver, warehouse worker, any sort of tactical work -- you're going to get a lot of applicants and need time to schedule interviews," Bersin said.</p> <p>"Hiring managers don't have a lot of time to do it, either. So, it serves as a very good screening tool… it's a way to take all of the intellectual property that companies use for interviewing and embed it in a much more scalable experience."</p> <p>Not everyone fully endorses the technology. Laws in jurisdictions including Maryland, California, New York City and <a href="https://www.techtarget.com/searchhrsoftware/news/252472497/A-backlash-emerges-over-automated-interviewing">Illinois govern certain aspects of AI interviewing</a>, such as consent, facial recognition and potential bias.</p> <p>Vendors <a href="https://www.techtarget.com/searchhrsoftware/feature/Why-algorithmic-auditing-cant-fully-cope-with-AI-bias-in-hiring">have pushed back</a> on the notion that AI introduces biases.</p> <p>AWS based Amazon Connect Talent on Amazon's own AI hiring systems, much like the original AWS CCaaS was based on Amazon's homegrown, in-house customer service technologies, AWS's DeMaio said.</p> <p>The company built the AI interviewing tool with customers in mind who hire many people annually, for jobs that sometimes turn over twice a year. He characterized the AI as "less judgmental" than humans.</p> <p>"[The volume of work] is a really hard problem for these recruiters to face," DeMaio said. "Every day they come into work, and they're trying to do this hiring. A lot of it's been very manual, not very much fun. Over time, we had built a bunch of science around how to accelerate these recruiters' ability to do their jobs and just have a better experience bringing people on. Using that science, we've created this product, Talent." &nbsp;</p> <p><i>Don Fluckinger is a seasoned B2B technology journalist with over 30 years of experience, specializing in enterprise IT, digital experience and content management. As a senior news writer at Informa TechTarget, he delivers award-winning analysis that helps IT and business leaders navigate complex technologies to enhance customer and employee experiences. Got a tip? </i><a href="mailto:don.fluckinger@informatechtarget.com?subject=Tip%20from%20article" target="_blank" rel="noopener"><i>Email him</i></a><i>.</i></p> </section> AWS tosses its hat into a somewhat mature -- and crowded -- enterprise tech ring. https://cdn.ttgtmedia.com/rms/onlineimages/telecommunications_g1247980427.jpg https://www.techtarget.com/searchhrsoftware/news/366642560/Amazon-Connect-Talent-AWS-enters-AI-interviewing-market Fri, 01 May 2026 15:58:00 GMT <p>An HR system is one of the most important purchases an organization makes. The stakes couldn't be higher: The market for <a href="https://www.techtarget.com/searchhrsoftware/tip/The-7-best-HR-software-and-tool-options-to-consider">HR tools</a> continues to grow, and people management remains as urgent as ever amid unprecedented social, political and economic change. Now AI is disrupting nearly every aspect of business, transforming -- and sometimes eliminating -- jobs, automating much of the work of HR departments and spurring urgent efforts to retrain employees.</p> <p>This overview for CHROs explains all the key steps in setting up an effective buying process and identifies the <a href="https://www.techtarget.com/searchhrsoftware/tip/15-must-have-HR-software-features-and-system-requirements">HR software features</a> that ultimately determine whether a product will meet your needs. Throughout, links will take you to articles with details on important related topics.</p> <section class="section main-article-chapter" data-menu-title="What is HR software?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is HR software?</h2> <p>HR software encompasses the myriad tools organizations use to manage daily HR processes, such as recruiting, onboarding, training, payroll, benefits, time and attendance, performance management and succession planning.</p> <p>While HR software was originally inward-facing and focused on the administrative tasks of HR departments, today's products make the art and science of developing an organization's human resources -- its people -- available to every employee.</p> </section> <section class="section main-article-chapter" data-menu-title="Types of HR software"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Types of HR software</h2> <p>HR software usually comes as a suite of modules, each one designed for a specific HR process.</p> <p>The most comprehensive platforms go by several names:</p> <ul class="default-list"> <li>Human resource management system (HRMS).</li> <li>Human resource information system (<a href="https://www.techtarget.com/searchhrsoftware/definition/HRIS">HRIS</a>).</li> <li>Human capital management (<a href="https://www.techtarget.com/searchhrsoftware/definition/human-capital-management-HCM">HCM</a>).</li> </ul> <p>The terms are often used interchangeably, but there are discernible differences when comparing <a href="https://www.techtarget.com/searchhrsoftware/feature/HRIS-vs-HRMS-vs-HCM-Key-differences-and-similarities">HRIS vs. HRMS vs. HCM</a>. In short, <i>HRIS</i> and <i>HRMS</i> are near synonyms for actual software platforms you can buy, while <i>HCM</i> is an umbrella term for both HR processes and software.</p> <p>These comprehensive suites typically include the following categories of software modules, which can often be bought separately:</p> <ul class="default-list"> <li>Core HR (benefits, employee records, payroll, etc.).</li> <li><a href="https://www.techtarget.com/searchhrsoftware/definition/talent-management">Talent management</a> (compensation, learning, performance, recruitment, succession).</li> <li>Workforce management (scheduling, time and attendance).</li> <li>Service delivery (employee and <a href="https://www.techtarget.com/searchhrsoftware/definition/manager-self-service">manager self-service</a>, help desks).</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/hrsoftware-hcm_components.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/hrsoftware-hcm_components_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/hrsoftware-hcm_components_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/hrsoftware-hcm_components.jpg 1280w" alt="Illustration of HCM components and functions and how they're connected." height="385" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>Human capital management (HCM) software includes components for every major process in HR. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Benefits of HR software"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Benefits of HR software</h2> <p>Organizations typically bought HR software to digitize the record-keeping, computation and communication tasks performed by the HR department and distributed some of those responsibilities throughout the organization. Functions such as time and attendance, payroll, recruiting, regulatory compliance and benefits administration could be moved off paper and managed -- usually more efficiently -- on computers.</p> <p>This partial automation of manual tasks reduced labor costs, streamlined HR processes and made them more effective. Nowadays, organizations look to AI to supercharge their HR automation so common processes like benefits administration and recruitment can be mostly handled by AI and some HR roles eliminated or shifted to higher-value work.</p> <p>The effect of this increasingly AI-infused technology goes far beyond the more commonplace benefits of <a href="https://www.techtarget.com/searchhrsoftware/definition/HR-automation">HR automation</a>. When more employees perform better and reach their full potential, the result is often improved creativity and productivity that ultimately leads to higher profits.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/uzL1ZqzlWcw?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="Latest trends in HR software"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Latest trends in HR software</h2> <p>Societal trends in work-life balance, employee satisfaction and diversity, in tandem with emerging technologies that are infiltrating every aspect of business, have had a major impact on HR processes and software. Here are six of the most influential trends.</p> <h3>1. AI</h3> <p>Artificial intelligence can spot patterns, choose among options and make predictions -- all things people do when recruiting, evaluating and developing talent. Automating those processes with AI can make them more accurate and efficient. HR software vendors have been aggressively adding AI capabilities, including generative AI (<a href="https://www.techtarget.com/searchenterpriseai/definition/generative-AI">GenAI</a>) with humanlike communication skills for writing recruitment emails, creating educational content and developing career paths.</p> <p>"AI is changing everything," said Brian Sommer, president of the TechVentive consultancy. "It's changing the products, the business case, the scope, the outcomes, the procurement process and more." But there are major concerns that the technology can sometimes amplify rather than eliminate racism, sexism and other biases. Companies are also uneasy about leaving important decisions up to a technological "black box." And some job applicants mislead prospective employers with AI-generated resumes that are falsified to match job descriptions.</p> <p>Sommer cautioned buyers to watch out for vendors who charge extra for new AI features -- such as modeling and analytics -- as AI-driven workflows begin doing the work of traditional modules, including recruiting and workforce management.</p> <p>"What you thought was an application? That definition is expanding and changing, and may have contractual and monetary implications," he said. "Readers need to fasten their seatbelts, put a padlock on the corporate bank account and prepare to have some tough-love conversations with software vendors if they start getting greedy."</p> <h3>2. Augmented reality and virtual reality</h3> <p>AR overlays digital information on a real-world environment, while VR attempts to digitally simulate an entire environment. Both are beginning to transform corporate learning by providing virtual hands-on experience with the tools and procedures employees need to learn for their jobs. The use of <a href="https://www.techtarget.com/searchhrsoftware/tip/VR-in-HR-How-human-resources-can-use-VR-and-AR-technology">AR and VR in HR-driven training</a> could help avert a knowledge crisis resulting from the mass retirement of baby boomers.</p> <h3>3. Blockchain</h3> <p>A database technology for distributing records across a chain of computers, blockchain makes data essentially permanent and largely immune to hacking. Bitcoin is the most famous blockchain application, but companies are exploring its potential for sharing employee records and other HR information. Initial uses for <a href="https://www.techtarget.com/searchhrsoftware/tip/Blockchain-HR-technology-5-use-cases-impacting-human-resources">blockchain HR technology</a> include securely transmitting payroll documentation, candidate credentials and employment contracts. However, deployments are few, and significant technical hurdles and distrust sown, in large part, by <a href="https://www.techtarget.com/whatis/feature/Common-cryptocurrency-scams">high-profile cryptocurrency fraud</a> will have to be overcome for blockchain to see widespread adoption.</p> <h3>4. Mental health</h3> <p>Workers' struggles with isolation and stress from COVID-19 lockdowns and remote-work expectations sparked renewed interest in supporting mental health on par with physical health. Today, employers continue to bolster their benefit packages with mental health and wellness apps and portals.</p> <h3>5. Remote and hybrid work</h3> <p>When pandemic lockdowns ended, companies struggled to formulate new requirements and incentives for working in the office. Many adopted hybrid models that combine home and office work. The physical dispersal of the workforce drove demand for video conferencing software, team collaboration tools and other hybrid workplace technologies. HR software vendors responded with new features for remote performance management and recruitment, employee engagement, monitoring and wellness.</p> <h3>6. Robotic process automation</h3> <p>By mimicking human actions, RPA bots -- some capable of AI-based decision-making -- can execute common HR processes, such as benefits selection, expense reimbursement and resume-sorting, faster and more accurately. Vendors began adding <a href="https://www.techtarget.com/searchhrsoftware/tip/What-does-robotic-process-automation-mean-for-HR-operations">RPA to their HR</a> products several years ago, but the recent focus is on <a href="https://www.techtarget.com/searchenterpriseai/definition/agentic-AI">agentic AI</a> that is intelligent enough to automate decisions and make recommendations.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/how_hr_vendors_will_use_generative_ai-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/how_hr_vendors_will_use_generative_ai-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/how_hr_vendors_will_use_generative_ai-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/how_hr_vendors_will_use_generative_ai-f.png 1280w" alt="Chart with bulleted lists detailing how HR vendors will use generative AI across various functions." height="342" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Generative AI's ability to communicate like a person can help automate numerous HR processes. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Keys for evaluating HR software"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Keys for evaluating HR software</h2> <p>How do you find the products that have the basic functions and specific features your organization needs the most? And how can you scrutinize vendor spec sheets and demos to compare products in enough detail to make the right choice?</p> <p>"Features and functionality aren't much help because most products are mature and do the same things," Sommer said. "The issue is which products do a killer job of solving your most complicated, messed-up functions or process pain points."</p> <p>One of the most common <a href="https://www.techtarget.com/searchhrsoftware/tip/13-HR-software-buying-mistakes-to-avoid">HR software buying mistakes</a> is looking for products that automate existing processes. Sommer advised that organizations instead take time to investigate what's possible with new and innovative HR technologies, reimagine their HR or talent management processes, and then pick a vendor they believe can close the gap between idea and reality.</p> <p>Another common mistake is seeing HR systems as silos and failing to develop a long-term architectural vision that accounts for data management, privacy and integration between key systems, said Josh Bersin, HR analyst and founder of The Josh Bersin Company.</p> <p>Bersin recommended instead treating <a href="https://www.techtarget.com/searchhrsoftware/feature/HR-software-selection-How-to-ask-the-right-questions">HR software selection</a> like a product management strategy that calls for monthly and annual investments in technology. First, identify the organization's biggest objectives, such as growth or productivity, before conducting research to find vendors that fit the organization's size. Then get references from customers in the same industry, experiment with different vendors and establish partnerships with them. Expand the vendor relationship beyond the salesperson to the product team and executives, he said, "so you really feel like this is a vendor that fits hand-in-glove with your needs."</p> <p>Here are the typical steps in the software selection process:</p> <ul class="default-list"> <li><b>Create a strategy to evaluate HR tools.</b> Define the organization's biggest workforce challenges, needs and goals.</li> <li><b>Assemble a cross-disciplinary buying team.</b> Include representatives from HR, IT and finance, as well as departmental managers and staff who will use the software.</li> <li><b>Identify requirements.</b> List what is important to the organization in an HR software system. The criteria should cover technology requirements and business issues, such as international compliance needs.</li> <li><b>Identify potential vendors.</b> Use a variety of research methods -- from market reports to discussions with other companies -- to generate a list of possible vendors. Then, narrow it down to 5-10 vendors to approach for more information.</li> <li><b>Send a request for proposal to the shortlist of vendors.</b> The <a href="https://www.techtarget.com/searchitchannel/definition/request-for-proposal">RFP</a> should be clear and concise and include information about your organization, the project, timeline, submission rules and scope, as well as a vendor questionnaire.</li> <li><b>View demos.</b> Ask each vendor to build demos around actual use cases from your organization. Fully scripted demos that show the exact steps for employees are the best way to judge a module's capabilities and determine if a product will deliver.</li> <li><b>Read case studies.</b> Find customer stories that include deployment and adoption challenges. Ask vendors for reference customers who can answer questions directly.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/when_hr_parts_are_greater_than_the_whole-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/when_hr_parts_are_greater_than_the_whole-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/when_hr_parts_are_greater_than_the_whole-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/when_hr_parts_are_greater_than_the_whole-f.png 1280w" alt="Graphic showing how HR software functions affect the organization" height="560" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>HR software automates most HR functions and makes them available in nearly every part of the organization. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Who is responsible for buying HR software?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Who is responsible for buying HR software?</h2> <p>CHROs need to put some thought into who should be on the <a href="https://www.techtarget.com/searchhrsoftware/tip/The-HR-software-buying-team-Roles-responsibilities-tips">HR software buying team</a>. The following are typical roles and responsibilities.</p> <p><b>Sponsor.</b> This is the main person overseeing the project, typically someone in the C-suite, such as the chief human resources officer (<a href="https://www.techtarget.com/searchhrsoftware/definition/chief-human-resources-officer-CHRO">CHRO</a>), CIO or CFO. They make the big decisions and keep the initiative aligned with the business strategy.</p> <p><b>Selection manager.</b> The selection manager is the de facto project manager for the product evaluation and selection process. This is often a senior HR manager, such as the <a href="https://www.techtarget.com/whatis/definition/HRIS-director-human-resources-information-system-director">HRIS director</a>, or a member of the central project management office.</p> <p><b>Selection advisor.</b> Typically, this role is filled by an outside consultant, but it could be an internal person with similar expertise in requirements planning, RFP preparation and other formal steps.</p> <p><b>Subject matter experts.</b> These are the people who know the most about the important business processes the new system will manage, such as HR administration, payroll, benefits, recruitment and compensation.</p> <p><b>Demo team.</b> This group comprises HR staff and subject matter experts who will use the new system and can ask HRMS vendors questions related to departmental needs, along with IT staff who support those functions, including senior IT management.</p> </section> <section class="section main-article-chapter" data-menu-title="Building a business case for new HR software"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Building a business case for new HR software</h2> <p>HR software suites aren't cheap. Annual costs can range from several thousand dollars for the smallest SMBs to more than $5 million for large enterprises. To buy such an expensive system, you first have to convince other decision-makers to pay for it. That's why an <a href="https://www.techtarget.com/searchhrsoftware/tip/4-steps-to-building-a-business-case-for-a-new-HR-system">HR software business case</a> is essential. The best ones combine quantitative analysis geared to CEOs and finance directors with qualitative information that reflects the daily needs of users.</p> <p>Here are the major steps:</p> <ol class="default-list"> <li><b>Requirements gathering.</b> Solicit feedback from users and key stakeholders on current HR processes and measure their efficiency.</li> <li><b>Systems assessment.</b> Investigate the current HR system's ability to meet the identified requirements, costs such as <a href="https://www.techtarget.com/searchhrsoftware/answer/Why-is-HRIS-maintenance-so-important">HRIS maintenance</a>, and what a new system could do.</li> <li><b>Templating.</b> Collate the data, feedback and requirements in a standard document and prepare the business case.</li> <li><b>Benefits measurement.</b> Quantify how the new system can improve HR processes.</li> <li><b>ROI calculation.</b> Plug in costs and benefits metrics to show when the system begins to pay for itself.</li> <li><b>Audience identification.</b> Identify the key stakeholders and decision-makers and tailor the case to their individual needs.</li> </ol> <p>Organizations often skimp on systems assessment and fail to evaluate their HRMS thoroughly enough to see if it can meet their current requirements, said Eric St-Jean, an independent HR technology consultant and Informa TechTarget contributor. It might have unused features that are up to the task. But careful evaluation can also reveal shortcomings that make the need for a new system clear, such as frequent complaints from employees, problematic interfaces to important systems or an inability to accommodate growth.</p> <p>It's also important to right-size the system to stay within budget, St-Jean said. Large, complex systems from big vendors often bring extra consulting and training costs to implement them and keep them running.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/build_a_business_case_for_an_hr_system-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/build_a_business_case_for_an_hr_system-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/build_a_business_case_for_an_hr_system-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/build_a_business_case_for_an_hr_system-f.png 1280w" alt="List of steps involved in building an HR system business case." height="427" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Tailoring the case to each decision-maker is the most effective approach. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>Negotiating the best deal</h3> <p>When it comes to negotiating terms and price, Sommer recommends not being shy about it.</p> <p>"Everything is negotiable, and if your company is of any consequence, the vendor is going to move and bend," he said. "If they don't, you haven't gotten high enough up in the organization to find somebody with the appropriate authority to make that change."</p> <p>He likes to tell the vendor's CEO their company is likely to be in the finals and ask -- if the buyer raises an issue that could be a deal killer -- whether the vendor's account executive can call the CEO directly.</p> <p>"They want the transaction -- make no mistake about that," Sommer said. "The salesperson, on the other hand, is struggling with conflicting metrics. They need to do a deal and get it closed, but they also need to make sure it hits certain margins and other targets and introduce time delays and cost issues that shouldn't be there."</p> </section> <section class="section main-article-chapter" data-menu-title="HR software features to consider"> <h2 class="section-title"><i class="icon" data-icon="1"></i>HR software features to consider</h2> <p>Vendors will usually claim to handle most of your requirements, which makes it hard to choose between them. But certain features help separate contenders from pretenders. Here is a rundown of features and leading-edge technologies that can make the biggest difference in improving HR processes, organized by the main software modules in core HR, talent management, workforce management and service delivery.</p> <h3>Core HR</h3> <p>The reason many companies, especially SMBs, buy their first HRMS is to create a paperless HR system. Electronic employee records are at the center of these systems and remain the foundation of <a href="https://www.techtarget.com/searchhrsoftware/definition/HR-technology">HR technology</a>.</p> <p>One big differentiator, according to Sommer, is the presence of a payroll module: Some HRMSes don't have one. The next question to ask is about the type of integration with third-party payroll providers. An HRMS that handles payroll might need to outsource part of this function to pay overseas employees, for example.</p> <p>Another feature worth asking about is pay on demand, which lets employees get paid before their scheduled payday. It's increasingly popular with middle-income workers after starting out as an option typically chosen by low-income workers, Sommer said.</p> <p>Sommer also advised making sure <a href="https://www.techtarget.com/searchhrsoftware/definition/core-HR-core-human-resources">core HR</a> systems can fully handle contingent workers -- such as freelancers and contractors -- which includes providing accurate headcounts without needing separate types of software, and giving them security IDs and other tools full-time employees receive.</p> <p>It is also important to have core HR that keeps data in one place, St-Jean said. Some data can reside elsewhere, such as performance management software, but storing the vast majority in core HR will avoid having to run separate reports. The best products also come with a variety of flexible reporting and dashboard tools.</p> <p>"Try and get your data in a good place first, write out your requirements, and then find the new system that will let you merge all the data," he said.</p> <h4>Benefits administration</h4> <p>Managing standard benefits, such as health, dental, life and disability insurance, 401(k) retirement plans, tuition reimbursement and tax-advantaged flexible spending accounts, is a longstanding function of core HR.</p> <p>Many companies have been moving these functions from their on-premises computers to cloud-based providers. New health insurance platforms and wellness portals take healthcare beyond the basics to provide online access to providers, medical advice and fitness communities. If you're eyeing a separate health and wellness platform, Sommer advised making sure it integrates with financials so you can more easily manage the tax and compliance implications of health benefits.</p> <p>When buying benefits technology, most of your focus will be on setting up partnerships with benefit providers rather than the software used to administer them.</p> <p>The technical issues center on whether a particular type of software integrates with your company's HRMS. First, verify that a vendor supports your company's full menu of benefits. Look for tools that help tailor the system to handle the complex workflows needed to administer your rules and policies. Also look for strong security features that make it easy to fine-tune the access granted to different types of employees.</p> <h4>Payroll</h4> <p>The payroll module or outside service should have the following:</p> <ul class="default-list"> <li>Support for every country where the company does business, which could be through a variety of payroll providers.</li> <li>The ability to create and file the appropriate tax documents and other compliance requirements.</li> <li>Integration with core financials, typically in ERP, to ensure accounting records reflect the latest payroll.</li> <li>Support for global pay-equity analysis.</li> </ul> <h4>Compliance</h4> <p>HR departments are responsible for keeping an organization in compliance with the many regulations affecting employment, from fair labor practices to antidiscrimination laws and workplace safety. That's why it's important for core HRMS software to have a breadth of tools not only for monitoring business practices that can have legal implications but also for preparing all the paperwork required by local, state and national governments.</p> <p>Check if vendors support the following:</p> <ul class="default-list"> <li>Every type of documentation, including all forms, tables and exhibits your organization is required to file.</li> <li>AI, analytics and other mechanisms for ensuring that talent management modules don't run afoul of discrimination laws by allowing sexism and other illegal biases.</li> <li>Employee records storage that follows privacy laws, such as the EU's GDPR, especially for HR software vendors who use public cloud services from other providers.</li> </ul> <h4>Onboarding</h4> <p>The <a href="https://www.techtarget.com/searchhrsoftware/definition/employee-onboarding-and-offboarding">onboarding</a> process, especially an employee's first-day experience, can determine how long they stay.</p> <p>"The big problem here is: Will the software integrate with all the non-HR solutions, and is there workflow and exception handling for all of that?" Sommer said.</p> <p>To onboard an employee, HR professionals must coordinate an array of processes, from issuing a security badge and laptop to ordering uniforms and scheduling orientation -- much of it in a specific sequence. Coordinating these steps requires an onboarding module that ideally integrates with the IT, time clock and other systems needed to set up a new employee.</p> <p>Onboarding is often included in core HR, in part because it involves employee records, benefits and compliance. However, many vendors consider onboarding to be more of a talent management function because it comes right after the recruiting process, draws on corporate learning tools and potentially has a major impact on employee performance.</p> <p>Offboarding is the mirror image of onboarding, with the steps done in reverse order.</p> <p>Other features to investigate include the following:</p> <ul class="default-list"> <li>Integration with learning systems, so new employees can get quickly trained on required systems and processes and see training opportunities for new career paths.</li> <li>Surveys and other tools that make it easy for departing employees to give feedback, regardless of whether they have done an exit interview; using these tools consistently helps build a database you can analyze.</li> <li>Ease of use, which is vital to incoming employees.</li> <li>The ability of HR to track progress.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/hrsoftware-employee_cycle.png"> <img data-src="https://www.techtarget.com/rms/onlineImages/hrsoftware-employee_cycle_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/hrsoftware-employee_cycle_mobile.png 960w,https://www.techtarget.com/rms/onlineImages/hrsoftware-employee_cycle.png 1280w" alt="Illustration of the stages of the employee lifecycle: recruit, onboard, develop, retain and offboard." height="331" width="520"> <figcaption> <i class="icon pictures" data-icon="z"></i>Specialized software exists for every major phase of the employee lifecycle, starting with recruitment and onboarding, finishing with offboarding and circling back to recruitment. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>Talent management</h3> <p>After core HR, talent management is the most important driver of HR software purchasing and product development.</p> <p><a href="https://www.techtarget.com/searchhrsoftware/definition/talent-management-software-TM-software">Talent management systems</a> cover a vast array of disciplines and processes for bringing people with the right experience and potential into the organization, developing their skills, motivating them, assessing their performance, compensating them, and retaining them or easing their departure.</p> <p>In recent years, the emphasis in talent management has shifted to skills development and greater awareness of how skills fit into job descriptions and career paths.</p> <p>That means paying attention to how well a product can capture skills and translate them into job roles that are updated regularly. Besides significantly improving talent management processes, skills-oriented software can help companies with difficult decisions, such as furloughs and layoffs.</p> <p>But that no longer means having to build a skills database, which was once recommended for reorienting talent management toward skills, Bersin said. Employees don't want to waste time checking boxes in long lists of skills they have or want.</p> <p>The real issue is figuring out how to apply skills technology to pressing problems, such as hiring engineers or assessing leaders and low performers. "That's where the action is -- not in building this giant database of skills and making our HR system look like LinkedIn," he said.</p> <p>One increasingly common way for companies to develop employee skills is the use of gig marketplaces, a technology that began as a way for freelancers to find jobs but is now used internally by some companies to advertise projects that require certain skills to employees.</p> <p>Better visibility into the relationship between skills development and career growth helps employees see opportunities to grow inside the organization. It can also improve employee retention and help organizations maintain productivity during hiring freezes.</p> <p>No discussion of talent management today can avoid generative AI. The technology's dramatic surge in popularity in 2022 arguably disrupted talent management more than any other part of HR. More recently, agentic AI is automating even more steps in the process, with agents that can handle everything from candidate sourcing to outreach, interview scheduling and onboarding.</p> <p>"The whole idea of talent management was 'We're going to manage this person from the minute they come to work for us as a job candidate all the way through their career to become a senior manager or executive until they retire.' And that's just not the way companies work," Bersin said.</p> <p>Instead, people come and go, change jobs, sometimes change professions or shift to part-time employment. "These systems have to be very flexible and very intelligent so that they can accommodate these more complex use cases," he said. As a result, traditional, integrated talent management suites are becoming dated as vendors strive to add AI to accommodate buyers' expectations for intelligent workflows and analytics.</p> <p>But while AI's capabilities are impressive, St-Jean injected a note of caution and advised only choosing tools that have proved their usefulness. He questioned the practicality, for example, of AI that can write an offer letter to send to a candidate. "No legal team in their right mind is going to let HR have AI generate an offer letter and give that to somebody," he said.</p> <p>Furthermore, the usefulness of AI tools can diminish over time. St-Jean gave the example of GenAI that writes job descriptions -- one of the first HR applications of the technology. But now applicants use those same tools to rewrite their resumes to suit different job descriptions, and recruiters then use AI to identify resumes that match. "Of course there's going to be a match," he said.</p> <p><iframe title="How AI amplifies resume fraud and other job seeker cheating" allowtransparency="true" height="150" width="100%" style="border: none; min-width: min(100%, 430px); height: 150px;" scrolling="no" data-name="pb-iframe-player" src="https://www.podbean.com/player-v2/?i=cymcw-1a126cd-pb&amp;from=pb6admin&amp;pbad=0&amp;share=1&amp;download=1&amp;rtl=0&amp;fonts=Arial&amp;skin=1&amp;font-color=auto&amp;logo_link=episode_page&amp;btn-skin=2baf9e" loading="lazy"></iframe></p> <h4>Compensation management</h4> <p>Many companies have a giant spreadsheet that shows employee salaries and job titles, plus the salary ranges for each job, perhaps adjusted for local markets, according to Sommer. "The problem is, where do you get the data?" he said.</p> <p>Ideally, the <a href="https://www.techtarget.com/searchhrsoftware/definition/compensation-management">compensation management</a> system comes with a prepopulated big-data service. If it doesn't, buyers should ask how much it costs to buy data from a provider and how current the information is. Salary databases are often outdated just when they're needed for employee performance or compensation reviews.</p> <p>Other differentiating features include the following:</p> <ul class="default-list"> <li>Support for different kinds of compensation, such as stock options and variable compensation for companies that are heavily sales-oriented.</li> <li>Compensation histories for every employee.</li> <li>The ability to import external data and run calculations without affecting work done by a compensation planner.</li> </ul> <h4>Learning and development</h4> <p>The on-premises learning management system (<a href="https://www.techtarget.com/searchcio/definition/learning-management-system">LMS</a>) is a common legacy platform in organizations that were early to the HR software market. In recent years, many LMSes have been modernized and moved to the cloud.</p> <p>But, the most important development in <a href="https://www.techtarget.com/searchhrsoftware/feature/Workplace-learning-A-complete-guide-for-businesses">workplace learning</a> is the rise of affordable new learning resources, such as short instructional videos on YouTube and TikTok and the free <a href="https://www.techtarget.com/whatis/definition/massively-open-online-course-MOOC">massive open online courses</a> from universities and companies that specialize in distance learning.</p> <p>Finding useful, ready-made educational content can be a challenge, so companies often turn to third-party providers, but they can be expensive. For those that already have an LMS, the issue is whether it's possible to import content from these new sources. Leading-edge products have AI that can recommend training based on past selections and career paths, similar to the way Netflix's AI makes recommendations based on streaming history.</p> <p>In recent years, learning experience platforms (<a href="https://www.techtarget.com/searchhrsoftware/definition/learning-experience-platform-LXP">LXPs</a>) began to replace LMSes because of their ability to discover and deliver external content in a personalized, consumer-grade UI that gives employees more control over the learning process.</p> <p>Some organizations add an LXP as their primary means of interacting with employees but retain their LMS for record-keeping. Buyers who want to pursue this model should first understand the differences between an <a href="https://www.techtarget.com/searchhrsoftware/tip/LXP-vs-LMS-What-are-the-differences">LXP and an LMS</a> and make sure the systems are well integrated.</p> <p>It's also important to have good integration between the career planning and learning features of the talent management suite so employees can formulate career paths and identify gaps in their skills and education.</p> <p>Learning is another HR process that AI is quickly transforming, according to Bersin, whose company introduced Galileo, a GenAI digital assistant for HR practitioners, in 2023, later adding agentic AI.</p> <p>"AI has absolutely spectacular characteristics for training and education," Bersin said, citing its ability to automatically generate personalized content.</p> <p>He said LMSes won't necessarily be retired, but the learning technologies that run on top of them -- including LXPs -- are gradually being replaced by AI-centric tools, which have a high ROI.</p> <p>Look for these options in learning and development tools:</p> <ul class="default-list"> <li>A large variety of learning formats, including classroom, remote, paper-based, video and audio, both live and on demand.</li> <li>Capabilities that make it easy for employees to create learning content, such as recording videos on smartphones and providing searchable transcripts.</li> <li>A rich library of courses and materials on a wide range of relevant topics, including the tools that employees use in their jobs and courses that meet certification requirements of your industry.</li> <li>Support for <a href="https://www.techtarget.com/searchhrsoftware/definition/xAPI-experience-API">experience API</a>, an integration standard that helps apply analytics to learning for monitoring employee use and improving the offerings.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/lms_vs_lxp-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/lms_vs_lxp-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/lms_vs_lxp-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/lms_vs_lxp-f.png 1280w" alt="Table comparing an LMS vs. an LXP by purpose, key features, content types, strengths and weaknesses." height="319" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Learning management system features often complement learning experience platform features, so some companies use both. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h4>Performance management</h4> <p>For at least a decade, many companies have been replacing paper-heavy annual reviews with continuous performance management, which provides <a href="https://www.techtarget.com/searchhrsoftware/tip/9-of-the-top-employee-review-software-for-CHROs-to-investigate">tools for coaching and feedback</a> to help employees continuously improve their performance. Social media and email integration enable employees to send kudos and "nudges" to co-workers and make such feedback a regular part of their daily workflow.</p> <p>Sommer said organizations should look for <a href="https://www.techtarget.com/searchhrsoftware/definition/performance-management-software">performance management software</a> with strong analytics features. "The analytics are going to tell you where your problems and opportunities are." Workflow and exception-handling features help you do something about them.</p> <p>Also, look for the following capabilities:</p> <ul class="default-list"> <li>Integration with learning systems so employees can improve their skills or take mandatory training.</li> <li>Retention analytics to identify leaders and other high performers at risk of leaving.</li> <li>Integration with the compensation management module, which can provide the ability, for example, to analyze how modest across-the-board raises affect the morale of high performers.</li> <li>AI-driven workflow features that can move reviews to the next stage instead of waiting for everyone to respond.</li> <li>The ability of managers and their direct reports to enter data simultaneously.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/hr_software-applicant_tracking_system-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/hr_software-applicant_tracking_system-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/hr_software-applicant_tracking_system-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/hr_software-applicant_tracking_system-f.png 1280w" alt="Graphic listing main functions of an applicant tracking system" height="584" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>An ATS digitizes and often automates the main steps of the recruitment process and stores candidate data in a central location. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h4>Recruiting</h4> <p>The perennial war for talent makes recruiting difficult for many companies.</p> <p>Talent management suites have more tools for recruiting than for any other HR function. <a href="https://www.techtarget.com/searchhrsoftware/Ultimate-guide-to-recruitment-and-talent-acquisition"><i>Talent acquisition</i></a> remains a buzzword, with the market for recruiting software in constant flux and startups entering every year.</p> <p>Many organizations use an applicant tracking system (<a href="https://www.techtarget.com/searchhrsoftware/definition/applicant-tracking-system-ATS">ATS</a>) to manage basic recruitment functions like online job postings, resume parsing and interview scheduling, as well as to maintain a database of candidates. ATSes can be standalone or part of a talent management suite and handle the entire recruitment workflow, from application to job offer.</p> <p>Other features to look for in an ATS or other recruiting tool include the following:</p> <ul class="default-list"> <li>SMS texting, which helps reach candidates who lack access to laptops or PCs and prefer texts over voice calls.</li> <li>A record of every contact with a candidate on every communication platform used.</li> <li><a href="https://www.techtarget.com/searchbusinessanalytics/definition/natural-language-processing-NLP">Natural language processing</a> for analyzing unstructured data, such as text messages.</li> <li>AI agents that can handle recruitment steps with minimal supervision.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/hrsoftware-recruitment.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/hrsoftware-recruitment_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/hrsoftware-recruitment_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/hrsoftware-recruitment.png 1280w" alt="Illustration of seven steps of recruitment process from posting the job description to onboarding the employee." height="353" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>The recruitment process has become easier and more effective, albeit more complex, because of the influx of new technologies, especially AI and social media. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h4>Succession planning</h4> <p>Some talent management suites have a <a href="https://www.techtarget.com/searchhrsoftware/definition/succession-planning">succession planning</a> module that helps organizations plan for what should happen when executives and other high-value employees leave. It can also help retain good employees by spotting signs of dissatisfaction and providing career paths.</p> <p>Ease of use is critical here -- especially if people outside of HR, such as senior managers, need to use the tools.</p> <p>The best tools also have the following features:</p> <ul class="default-list"> <li>What-if capabilities for considering different reporting structures and reorganizations, or the effect of corporate mergers on succession.</li> <li>An org chart tool that goes beyond static PDFs and makes it easy to move large chunks around.</li> <li>Close integration with learning management tools to facilitate career development for employees earmarked for eventual promotion.</li> <li>The ability to plan succession for non-executive-level employees.</li> </ul> <h4>Job postings and job boards</h4> <p>There was a time when companies posted every listing to as many job boards as possible. Nowadays, job postings usually cost money, and the priority is managing postings so they will be as effective as possible. Recruiting modules now have GenAI tools to help create job descriptions and postings, as well as agentic AI that takes over much of the workflow and distribution.</p> <p>Important features include the following:</p> <ul class="default-list"> <li>Integration with popular job boards and others you want to use.</li> <li>Support for other digital channels, such as social media and text, for more precise targeting of promising candidates.</li> </ul> <h4>Video interviewing</h4> <p>Basic video interviews simply involve using webcams to replace in-person meetings. Video interviewing software is much more sophisticated: It lets an employer send the same set of questions to thousands of candidates to produce interviews in a consistent format and then uses AI to analyze candidates. The technology is often used to winnow down the list for in-person second interviews, but it carries the risk of AI introducing bias in hiring.</p> <p>Look for these key features:</p> <ul class="default-list"> <li>Tools and procedures for detecting bias in the software's recommendations.</li> <li>Easy ways to move around and make notes in videos and jump quickly among videos.</li> <li>AI-automated transcriptions you can easily search for keywords that suggest in-demand skills.</li> </ul> <h4>Employee engagement and recognition</h4> <p><a href="https://www.techtarget.com/searchhrsoftware/definition/employee-engagement">Employee engagement</a> has been a growth area for tech startups, and major HR platform vendors have acquired these niche players or built their own tools. The dizzying number of options makes choosing one a special challenge.</p> <p>Employee surveys are a popular tool for measuring and boosting employee engagement. The most helpful software has a large selection of premade surveys with cross-tabulation capabilities. Ease of use is key because most users are department managers or HR staffers who aren't savvy about technology.</p> <p>Also, look for the following options:</p> <ul class="default-list"> <li>Easy ways to attach documentation and data that support badges and other types of recognition.</li> <li>Strong integration with email and collaboration platforms.</li> <li>The ability to export recognition data to the performance management system.</li> <li>The ability to synthesize survey data in near real time.</li> </ul> <h3>Workforce management</h3> <p>Workforce management systems enable organizations to monitor and improve employee productivity. In addition to tracking the time it takes to complete tasks and projects, workforce management can also identify opportunities to better deploy employees and skill sets.</p> <p>Though it has obvious affinities with talent management, workforce management is a separate discipline, often with separate software devoted to it.</p> <h4>Workforce planning</h4> <p>In contrast, workforce planning software drills down into the details of assigning workers to specific jobs. It's heavy on <a href="https://www.techtarget.com/searchhrsoftware/tip/10-HR-analytics-tools-that-can-optimize-your-workforce">HR analytics tools</a>, as executives and HR managers parse external demographic and labor data alongside internal data to spot pending shortages or decide where to reassign employees to better address strategic priorities.</p> <p>At the same time, workforce planning can be extremely detailed and help decide, for example, whether to call in two more retail clerks for a weekend sale.</p> <p>Scheduling software is the primary tool of workforce planning. It's especially valuable if it lets employees schedule themselves while ensuring that shifts will be covered, which is key to retaining employees in certain professions, according to Sommer.</p> <p>Workforce planning is another common target for innovative AI, Bersin said, because there's an urgent need to retain contingent and hourly workers with more sophisticated shift-scheduling tools that let them choose their preferred shifts and locations, as well as to compensate those workers appropriately. This segment represents around a third of the workforce and is the most affected by labor shortages.</p> <p>"AI tools can do a great job of optimizing the workforce planning activity," added Sommer. "They can identify the staffing mix that provides the best shift coverage, minimizes overtime, honors training commitments, meets payroll cost requirements, etc. Some tools can optimize several dozen factors simultaneously and handle factors like employee time and day preferences, travel times, time-off requests and more."</p> <p>Before purchasing, check for the following:</p> <ul class="default-list"> <li>Daily tracking of individual employees' security credentials, including whether they have been revoked.</li> <li>Awareness of certification requirements of jobs, ability to assess certification validity and expiration date, and links to an LMS or LXP for related training.</li> <li>Notification when employees are nearing weekly hours that will require paying them benefits or overtime.</li> <li>The ability to let employees quickly record that they have completed their scheduled shift.</li> </ul> <h3>Service delivery</h3> <p>The days when employees simply walked down the hall to ask a question or pick up a form at their HR department are a relic of the past. As companies digitize and more employees work remotely, service delivery has become an important aspect of ensuring employees receive the HR services they need.</p> <p><a href="https://www.techtarget.com/searchhrsoftware/definition/HR-service-delivery">HR service delivery</a> has been a growth area in HR tech, with vendors adding help desks, chatbots, agent-assisted workflows and feedback tools.</p> <p>The platforms can be challenging to set up in-house, integrate with HR systems and populate with enough data and documentation, which often makes them a better fit for large companies than for SMBs.</p> <h4>Employee self-service</h4> <p>Enabling employees to change their personal information, benefit elections and beneficiaries can save time for HR professionals.</p> <p>Vendors have worked to make these employee self-service (<a href="https://www.techtarget.com/searchhrsoftware/definition/employee-self-service">ESS</a>) features available on employees' personal devices and automate them with agentic AI that can prompt users and respond to requests in natural language.</p> <p>Look for these features:</p> <ul class="default-list"> <li>Smartphone access to most self-service functions.</li> <li>Support for other devices -- including shop floor tablets, break room computers and point-of-sale systems -- if the workforce is mostly employees who lack smartphones and home computers and need other ways to access ESS.</li> <li>Easy update capabilities, so employees can see each other's current availability.</li> </ul> <h4>Manager self-service</h4> <p>Managers need self-service features that go beyond ESS by providing access to the HR and business functions, applications and data they need to perform their supervisory roles.</p> <p>Here's what to look for in manager self-service features:</p> <ul class="default-list"> <li>Remote access to the full range of applications, with the same level of security and privacy as in-house systems.</li> <li>Department-wide visibility into work schedules to help with vacation approvals and other changes.</li> </ul> <p><i>David Essex is an industry editor who covers enterprise applications, emerging technology and market trends, and creates in-depth content for several TechTarget websites.</i></p> </section> Buying the right HR tools is more critical than ever. This step-by-step guide helps you identify your needs, understand the technology and pinpoint the features that matter most. https://cdn.ttgtmedia.com/visuals/searchFinancialApplications/hr_technology/financialapplications_article_006.jpg https://www.techtarget.com/searchhrsoftware/How-to-choose-an-HR-software-system Fri, 01 May 2026 14:00:00 GMT <p>HR technology (human resources tech) refers to the hardware and software that support an organization's human resources management (<a href="https://www.techtarget.com/searchhrsoftware/definition/human-resource-management-HRM">HRM</a>) functions. As organizations continue to improve internal operations through <a href="https://www.techtarget.com/searchcio/feature/Top-5-digital-transformation-trends-of-2021">digital transformation initiatives</a>, HR software has become an increasingly important tool for managing distributed workforces, enabling hybrid work models and supporting compliance in complex regulatory environments. CHROs must ensure their organization is using the right HR technology so the company can accomplish its goals and perform as well as possible.</p> <p>The right HR technology can help an organization improve efficiency, reduce administrative overhead and make better <a href="https://www.techtarget.com/searchhrsoftware/definition/workforce-analytics">data-driven decisions about workforce planning</a>.</p> <p>In the enterprise, for example, core HR technology applications and software modules that are integrated into broader human capital management (<a href="https://www.techtarget.com/searchhrsoftware/definition/human-capital-management-HCM">HCM</a>) or human resources information systems (<a href="https://www.techtarget.com/searchhrsoftware/definition/HRIS">HRIS</a>) make it easier for stakeholders to align people-related data with business strategy. This more holistic approach encourages HR teams to be treated as strategic business partners and the <a href="https://www.techtarget.com/searchhrsoftware/tip/Metrics-to-calculate-your-applicant-tracking-system-ROI">return on investment for HR technology</a> to be assessed in terms of organizational goals.</p> <section class="section main-article-chapter" data-menu-title="Why is HR technology important?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Why is HR technology important?</h2> <p>HR technology is important because it reduces the need to manage core HR operations manually, and it allows HR professionals to focus more of their attention on strategic priorities such as talent development. By digitizing many of the time-consuming administrative burdens associated with payroll, <a href="https://www.techtarget.com/searchhrsoftware/tip/Use-cases-for-AI-in-employee-onboarding">onboarding</a> and <a href="https://www.techtarget.com/searchhrsoftware/tip/5-performance-management-challenges-and-how-to-fix-them">performance management</a> -- and by automating workflows to increase efficiency and reduce errors -- HR technology can help department managers <a href="https://www.techtarget.com/searchcloudcomputing/infographic/By-the-numbers-How-upskilling-fills-the-IT-skills-gap">anticipate skills gaps</a>, reduce turnover and ensure workforce planning initiatives are consistently aligned with business goals.</p> <p>HR technology is also important from the employee perspective. <a href="https://www.techtarget.com/searchhrsoftware/definition/employee-self-service">Employee self-service</a> tools can reduce the time workers spend waiting for HR to answer questions, respond to requests or update personnel records. The right self-service tools, <a href="https://www.techtarget.com/searchhrsoftware/post/Strategies-for-improving-HR-technology-adoption">when rolled out successfully,</a> can not only boost job satisfaction, they can also help improve employee retention rates and make <a href="https://www.techtarget.com/searchhrsoftware/definition/workforce-planning">workforce planning</a> easier and more efficient.</p> </section> <section class="section main-article-chapter" data-menu-title="Examples of how HR technology is used"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Examples of how HR technology is used</h2> <p>HR tech can reduce administrative burdens, support data-driven decisions for HR-related issues and give both <a href="https://www.techtarget.com/searchhrsoftware/tip/Nine-different-HR-roles-and-responsibilities-demystified">HR professionals</a> and employees better control over HR <a href="https://www.techtarget.com/searchhrsoftware/definition/HR-service-delivery">service delivery</a>. Essentially, HR technology allows CHROs to <a href="https://www.techtarget.com/searchhrsoftware/feature/How-to-create-an-employee-journey-map">enhance the employee journey</a> at their organization by using <a href="https://www.techtarget.com/searchhrsoftware/tip/Learn-the-types-of-HR-analytics">HR analytics</a> to discover insights that can improve business outcomes.</p> <p>Traditionally, the most common use of technology in human resources management has been in <a href="https://www.techtarget.com/searchhrsoftware/definition/core-HR-core-human-resources">core HR</a>. Core HR refers to the basic administrative functions of a human resources department. It typically includes payroll, benefits administration, employee records management and compliance reporting.</p> <p>In recent years, the evolution of HR technology has been driven by advances in AI, machine learning and <a href="https://www.techtarget.com/searchcloudcomputing/definition/cloud-computing">cloud computing</a>. Cloud computing has allowed HR systems to be deployed, accessed and updated more flexibly; machine learning has enabled <a href="https://www.techtarget.com/searchenterpriseai/definition/predictive-modeling">predictive models</a> to identify useful patterns in workforce data faster and more accurately; and AI is helping organizations automate repetitive HR tasks and personalize <a href="https://www.techtarget.com/searchhrsoftware/tip/7-top-learning-experience-platforms-for-employee-development">learning experience</a> recommendations.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/new_tools_and_strategies_for_enterprise_learning-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/new_tools_and_strategies_for_enterprise_learning-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/new_tools_and_strategies_for_enterprise_learning-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/new_tools_and_strategies_for_enterprise_learning-f.png 1280w" alt="Chart showing tools for online learning." height="342" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Various new tools are driving online learning options in addition to learning management systems. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>HR technology, especially <a href="https://www.techtarget.com/searchhrsoftware/feature/Advantages-and-disadvantages-of-using-AI-in-HR">AI-enhanced HR technology</a>, is also allowing HR professionals to optimize their own HR tech skills and spend more time on higher-value functions like <a href="https://www.techtarget.com/whatis/feature/The-Great-Detachment-explained-Everything-you-need-to-know">reducing employee detachment</a> and improving employee engagement metrics.</p> <p>To reduce administrative overhead while also encouraging employee engagement, many of today's platforms that support core HR functions allow employees to enroll in healthcare, retirement or wellness programs through a self-service <a href="https://www.techtarget.com/whatis/definition/portal">portal</a>. Self-service portals can not only relieve HR staff from the administrative burden of setting up and maintaining detailed records for each employee, they can also encourage employees to become more active participants in their own benefits management and overall workplace wellbeing.</p> </section> <section class="section main-article-chapter" data-menu-title="Core functions supported by HR tech"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Core functions supported by HR tech</h2> <p>Today, core HR technology is often used as a foundation to support more comprehensive (and expensive) human capital management and human resource information systems. Here are some of the core HR functions that HCM and HRIS systems provide:</p> <h3>Payroll</h3> <p>Payroll management software can be purchased as a stand-alone application or be acquired as a software module within a larger, more comprehensive HR platform. Small businesses often choose stand-alone payroll applications because they are easier to set up and manage, while enterprises tend to use integrated payroll modules that can support compliance and tax withholding across multiple jurisdictions. Cloud-based payroll management tools delivered through scalable software-as-a-service (<a href="https://www.techtarget.com/searchcloudcomputing/definition/Software-as-a-Service">SaaS</a>) subscription models often have tiered plans that charge more for advanced features such as automated payroll tax filing.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/hrsoftware-payroll_types.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/hrsoftware-payroll_types_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/hrsoftware-payroll_types_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/hrsoftware-payroll_types.png 1280w" alt="Image shows payroll software can be deployed on premises or in the cloud. It can also be purchased as a cloud service that uses a SaaS delivery model." height="325" width="520"> <figcaption> <i class="icon pictures" data-icon="z"></i>Payroll software is one of the most important components of HR technology. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>Compensation management</h3> <p><a href="https://www.techtarget.com/searchhrsoftware/definition/compensation-management">Compensation management</a> is related to payroll, but <a href="https://www.techtarget.com/searchhrsoftware/tip/Top-AI-recruiting-tools-and-software-of-2022">this type of HR software is also used by recruiters</a> and HR specialists to help determine the best pay rates for attracting and retaining employees and rewarding performance. Compensation management software is included in many enterprise-level talent management suites and can be used to automate salary calculations, determine salary benchmarks and integrate performance data with market insights to help align pay with both internal and external considerations.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/elements_of_compensation_management-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/elements_of_compensation_management-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/elements_of_compensation_management-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/elements_of_compensation_management-f.png 1280w" alt="Infographic that emphasizes compensation management requires the right mix of data and software tools." height="266" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Compensation management is typically supported by special HR software modules that can exist as stand-alone products or as part of a larger HCM suite. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>Travel and expense (T&amp;E) management</h3> <p>HR departments often use travel management stand-alone software or software components to record employee expenses, reimburse employees and analyze travel budgets. Expense report modules can provide stakeholders with a clear picture of spending at both individual and organizational levels. Mobile expense tools allow employees to track mileage, request reimbursements and submit receipts directly from a smartphone or tablet.</p> <h3>Talent acquisition and management</h3> <p><a href="https://www.techtarget.com/searchhrsoftware/definition/talent-management">Talent management</a> is the strategic process of attracting, developing, retaining and optimizing an organization's workforce to help ensure employee performance aligns with current business goals. It includes all the data and workflows used to build a <a href="https://www.techtarget.com/searchhrsoftware/definition/talent-pipeline">talent pipeline</a> and drive business success. Examples of different types of <a href="https://www.techtarget.com/searchhrsoftware/tip/5-best-talent-management-software-systems">talent management software systems</a> include the following:</p> <ul class="default-list"> <li><a href="https://www.techtarget.com/searchhrsoftware/tip/Top-16-applicant-tracking-systems">Applicant tracking system<b>s</b></a><b> </b>can be used to post job openings on a corporate website or job board, screen resumes and generate interview requests to potential candidates by email or text message. Additional features an ATS might offer include resume ranking, prescreening questions, response tracking and multilingual capabilities.</li> <li><a href="https://www.techtarget.com/searchhrsoftware/tip/ATS-vs-CRM-Whats-the-difference">Candidate relationship management</a> software allows recruiters to identify and maintain a pool of qualified candidates they can consider for open roles.</li> <li>Employee referral software allows HR staff to <a href="https://www.techtarget.com/searchcio/feature/How-to-attract-tech-talent-The-essentials">collect recommendations from current employees</a> about potential and current candidates.</li> <li>Employee assessment software can help hiring managers decide whether a job candidate is well suited for an open position. Some HR assessment technology can <a href="https://www.techtarget.com/whatis/feature/Screening-resumes-A-how-to-guide-for-hiring-managers">screen resumes to evaluate a candidate's soft skills and cultural fit</a> while others can only assess hard skills through multiple-choice questions.</li> <li>Succession planning software can<b> </b><a href="https://www.techtarget.com/searchhrsoftware/tip/Benefits-of-succession-planning">help organizations identify, develop and prepare employees</a> to fill critical leadership or specialized roles in the future. This type of HR software module is typically included in high-end enterprise HR suites to reduce the risks associated with sudden departures or retirements.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/hr_software-recruitment_vs_talent_acquisition-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/hr_software-recruitment_vs_talent_acquisition-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/hr_software-recruitment_vs_talent_acquisition-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/hr_software-recruitment_vs_talent_acquisition-f.png 1280w" alt="This image shows that talent acquisition software is often designed for long-term workforce planning, while the features in recruitment software focus on immediate hiring needs." height="295" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>Talent acquisition focuses on aligning hiring with business strategy, while recruitment focuses on meeting current staffing needs. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>Performance management</h3> <p><a href="https://www.techtarget.com/searchhrsoftware/tip/15-must-have-HR-software-features-and-system-requirements">HR software</a> enables HR specialists, managers and team leaders to <a href="https://www.techtarget.com/searchhrsoftware/definition/performance-management-software">evaluate employee performance</a> more often, align individual work with changing organizational goals and close performance gaps faster. Today's performance management enterprise platforms often include features such as real-time feedback, reward and recognition modules, customizable surveys and integration with learning and development tools.</p> <p>Today, many employers are moving toward <a href="https://www.techtarget.com/searchhrsoftware/definition/continuous-performance-management">continuous performance management</a> in place of (or alongside of) annual reviews. Features like automated reminders, mobile apps, analytics dashboards and integrations with learning systems make it easier to sustain continuous performance management at scale, and tie employee development initiatives directly to business outcomes.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/fin_apps-continuous_performance_management.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/fin_apps-continuous_performance_management_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/fin_apps-continuous_performance_management_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/fin_apps-continuous_performance_management.jpg 1280w" alt="Diagram that illustrates the 5-step cycle that organizations use to track and improve employee performance." height="448" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Performance management software can enhance traditional annual reviews by providing continuous feedback loops throughout the year. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>Workforce analytics</h3> <p>Workforce analytics is the practice of collecting, analyzing and interpreting HR data to generate insights that improve long-range workforce planning, optimize talent management and align HCM with business objectives. Workforce analytics software, which is also referred to as <a href="https://www.techtarget.com/searchhrsoftware/definition/human-resources-analytics-talent-analytics"><i>people analytics</i></a><i> software</i>, can help HR staff members <a href="https://www.techtarget.com/searchhrsoftware/tip/Challenges-of-data-analytics-in-HR">evaluate the effectiveness of their HR initiatives</a> and understand employee/candidate challenges better. This type of HR software can be purchased as a stand-alone application. Basic analytics functionality is included in many HCM and HRIS platforms.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/hr_software-people_analytics.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/hr_software-people_analytics_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/hr_software-people_analytics_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/hr_software-people_analytics.jpg 1280w" alt="Image that shows six ways workforce analytics can be used to enhance business performance." height="277" width="520"> <figcaption> <i class="icon pictures" data-icon="z"></i>Image that shows six ways workforce analytics can be used to enhance business performance. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>Employee engagement</h3> <p>Employee engagement software is another popular type of core HR technology. This type of HR tech often includes features like <a href="https://www.techtarget.com/searchhrsoftware/definition/gamification">gamification</a>, pulse surveys and fast feedback loops to help organizations <a href="https://www.techtarget.com/searchhrsoftware/tip/Employee-experience-vs-employee-engagement-The-differences">understand workforce engagement</a> and identify areas where employee satisfaction may be slipping. A major challenge of using employee engagement software to track and <a href="https://www.techtarget.com/searchbusinessanalytics/definition/opinion-mining-sentiment-mining">analyze sentiment</a>, however, is that the data might simply reflect adoption rates for the HR software itself rather than providing genuine insight into job satisfaction.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/hr_software-employee_engagement.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/hr_software-employee_engagement_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/hr_software-employee_engagement_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/hr_software-employee_engagement.png 1280w" alt="Hub and spoke diagram that shows employee engagement is driven by six factors: professional growth, leadership, work satisfaction, work relationship, employee well-being and value proposition." height="538" width="520"> <figcaption> <i class="icon pictures" data-icon="z"></i>Professional growth and work satisfaction are just two of the factors that encourage employee engagement. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>Benefits management</h3> <p><a href="https://www.techtarget.com/searchhrsoftware/definition/benefits-administration">Benefits administration</a> software is HR technology that streamlines the management of employee benefits programs (such as health insurance and retirement plans) by automating employee enrollment, ensuring compliance with relevant regulations and providing employees with self-service access to their benefits. This type of HR software is often included in enterprise HR software stacks, but it can also be purchased as a cloud service.</p> <h3>Learning management software/Learning management system</h3> <p>In enterprise HR software suites, a learning management system (<a href="https://www.techtarget.com/searchcio/definition/learning-management-system">LMS</a>) is a type of talent management module that can be used to deliver, track and manage employee training and development programs. An <a href="https://www.techtarget.com/searchhrsoftware/feature/Steps-to-follow-for-LMS-implementation-success">LMS can help HR and learning and development (L&amp;D) teams</a> create training content, assign courses, track completion and measure learning outcomes. Many HR suites that have LMS modules also support compliance training, certifications and personalized learning paths, which directly tie into HR's role in workforce development and retention.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/whatis-lms_vs_lxp-f.png"> <img data-src="https://www.techtarget.com/rms/onlineImages/whatis-lms_vs_lxp-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/whatis-lms_vs_lxp-f_mobile.png 960w,https://www.techtarget.com/rms/onlineImages/whatis-lms_vs_lxp-f.png 1280w" alt="Image that compares a traditional learning management system (LMS) with a self-directed learning experience platform (LXP). " height="296" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Learning management systems provide employees with a defined curriculum and structured learning paths. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Challenges of HR Technology"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Challenges of HR Technology</h2> <p>Despite its many benefits, HR technology has some significant challenges that organizations need to address before they can realize the technology's full potential. Enterprises often struggle with integrating multiple systems, managing global compliance requirements and proving return on investment for HR software, while small to midsize businesses (<a href="https://www.techtarget.com/whatis/definition/SMB-small-and-medium-sized-business-or-small-and-midsized-business">SMBs</a>) often have to deal with issues around the cost of HR software and software support.</p> <p>User adoption is a hurdle that must be overcome across all company sizes because even the best-designed HR software cannot deliver results without employee buy-in and consistent use.</p> <p><a href="https://www.techtarget.com/searchcio/definition/compliance-risk">Compliance risks</a> and <a href="https://www.techtarget.com/searchsecurity/definition/security">security</a> are other concerns. HR platforms handle sensitive employee information and personnel records that contain personally identifiable information (<a href="https://www.techtarget.com/searchsecurity/definition/personally-identifiable-information-PII">PII</a>). A breach that involves employee data can not only damage employee trust, it can also expose the organization to reputational harm and financial penalties.</p> </section> <section class="section main-article-chapter" data-menu-title="What is human capital management?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is human capital management?</h2> <p>Human capital management refers to the best practices and tools used by organizations to recruit, manage and develop their workforce. HCM software allows employees to be viewed as valuable business assets whose skills and performance need to be managed strategically, not just administratively.&lt;</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/jW_5GGj0zUM?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <p></p> <p>HCM platforms often include modules for recruitment, onboarding, performance management, learning and development, compensation, <a href="https://www.techtarget.com/searchhrsoftware/definition/succession-planning">succession planning</a> and compliance. In some tech-oriented enterprise environments, the data from an HCM data platform is integrated with other types of enterprise resource planning (<a href="https://www.techtarget.com/searcherp/definition/ERP-enterprise-resource-planning">ERP</a>) data to facilitate strategic alignment with business objectives.</p> </section> <section class="section main-article-chapter" data-menu-title="HCM vs. HRIS and HRMS"> <h2 class="section-title"><i class="icon" data-icon="1"></i>HCM vs. HRIS and HRMS</h2> <p>In the past, HR platforms were often marketed under the label "human resources information system" or "human resources management system." In recent years, however, the label <i>human capital management</i> has begun to displace both HRIS and HRMS. The shift in terminology is meant to reflect the evolution of HR tech's capabilities.</p> <p>That said, the three labels are still used in some settings to differentiate scope. An HRIS primarily handles administrative tasks, and an HRMS builds on that by adding additional functions for recruiting, performance management and reporting. Full HCM suites include all those functionalities and provide additional <a href="https://www.techtarget.com/searchhrsoftware/tip/Top-succession-management-software-products">software tools for succession planning</a>, compensation planning, workforce analytics and talent development.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-1" src="https://www.youtube.com/embed/uzL1ZqzlWcw?si=G8GrLTvpAWYdkWsc?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="Current trends in HR software"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Current trends in HR software</h2> <p>The future of HR technology is being shaped by rapid advances in <a href="https://www.techtarget.com/searchhrsoftware/tip/Use-cases-for-AI-in-performance-management">AI</a>, automation and data analytics. While these technologies are already being used to automate some repetitive tasks --such as resume screening -- AI is expected to enable increasingly accurate predictive insights in the future and expand self-service HR's ability to personalize <a href="https://www.techtarget.com/searchhrsoftware/feature/12-examples-of-employee-wellness-software-and-apps">wellness incentives</a> and skill development tools.</p> <p>In some organizations, the ultimate objective for employee engagement tools will be to create employee journey maps that can support every stage of an employee's lifecycle, from recruitment through offboarding. Currently, the technologies and best practices that are being considered to make this possible include the following:</p> <ul class="default-list"> <li><b>AI. </b>AI is being used to automate certain types of HR tasks, like resume scoring.</li> <li><b>Cloud-based HR systems.</b> Cloud-based HR software has made it easier to provide employees with self-service portals.</li> <li><b>Self-service technology.</b> HR chatbots embedded in HR portals, mobile apps or collaboration platforms can provide instant answers to FAQs.</li> <li><b>Data integration tools.</b> Some enterprise HR tech suites can already aggregate data from different sources to provide stakeholders with a more holistic view of the <a href="https://www.techtarget.com/searchhrsoftware/definition/employee-experience">employee experience</a> from <a href="https://www.techtarget.com/searchhrsoftware/definition/employee-onboarding-and-offboarding">onboarding to offboarding</a>.</li> <li><b>Learning management software.</b> Many enterprise-level HR technology suites have learning management components designed to help employees <a href="https://www.techtarget.com/whatis/definition/upskilling">upskill</a> their soft skills and <a href="https://www.techtarget.com/searchhrsoftware/definition/reskilling">reskill</a> their hard skills. This trend has accelerated with advancements in AI-driven learning recommendations and a growing demand for <a href="https://www.techtarget.com/whatis/definition/continuous-learning">continuous learning</a>, especially in hybrid workplaces.</li> <li><b>Pulse tools and surveys.</b> Pulse and survey tools can make feedback loops a regular part of the workplace, not just a quarterly or annual event.<b> </b></li> </ul> <figure class="main-article-image full-col" data-img-fullsize=" https://www.techtarget.com/rms/onlineImages/HR_employee_performance.png"> <img data-src=" https://www.techtarget.com/rms/onlineImages/HR_employee_performance_mobile.png" class="lazy" data-srcset=" https://www.techtarget.com/rms/onlineImages/HR_employee_performance_mobile.png 960w, https://www.techtarget.com/rms/onlineImages/HR_employee_performance.png 1280w" alt="This image lists and briefly explains different tech tools and strategies that organizations can use to enhance how employees perceive and interact with their workplace." height="430" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>HR technology and the engagement strategies it supports can improve workplace culture and each employee's experience on a day-to-day or long-term basis. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="HR tech vendors"> <h2 class="section-title"><i class="icon" data-icon="1"></i>HR tech vendors</h2> <p>HR tech has developed rapidly in recent years, and employers around the world are using both enterprise HR technology from big tech companies such as Oracle, SAP and Workday and specialized HR tech from vendors like Deel and Salary.com.</p> <p>Here are some of the most popular HR technology vendors for CHROs to consider, with products arranged by their primary focus:</p> <h3>Payroll</h3> <ul class="default-list"> <li><a target="_blank" href="https://quickbooks.intuit.com/payroll/" rel="noopener">QuickBooks Payroll</a>. Integrated payroll for small businesses.</li> <li><a target="_blank" href="https://gusto.com/" rel="noopener">Gusto</a>. SMB-friendly, full-service payroll with taxes, benefits and optional HR add-ons.</li> <li><a target="_blank" href="https://www.deel.com/" rel="noopener">Deel</a>. Global payroll with 150+ country coverage and compliance.</li> <li><a target="_blank" href="https://www.paylocity.com/" rel="noopener">Paylocity</a>. Integrated payroll suite with native expense/spend controls</li> <li><a target="_blank" href="https://www.adp.com/" rel="noopener">ADP</a>. Payroll and HCM offerings for organizations of all sizes.</li> </ul> <h3>Compensation management</h3> <ul class="default-list"> <li><a target="_blank" href="https://www.aeqium.com/" rel="noopener">Aeqium</a>. Fully customizable; can accommodate complex rules.</li> <li><a target="_blank" href="https://www.pave.com/" rel="noopener">Pave</a>. Compensation intelligence platform powered by AI; known for benchmarking and merit planning features.</li> <li><a target="_blank" href="https://www.salary.com/" rel="noopener">Salary.com</a>. Can use local market data in compensation models.</li> <li><a target="_blank" href="https://www.beqom.com/" rel="noopener">Beqom</a>. Enterprise tools for pay equity and transparency, compensation and performance management.</li> <li><a target="_blank" href="https://www.captivateiq.com/explainer/compensation-management" rel="noopener">CaptivateIQ</a>. Can automate commission/variable compensation.</li> </ul> <h3>T&amp;E management</h3> <ul class="default-list"> <li><a target="_blank" href="https://www.concur.com/en-us/travel-expense" rel="noopener">SAP Concur Expense</a>. Popular enterprise travel and expense software.</li> <li><a target="_blank" href="https://use.expensify.com/" rel="noopener">Expensify</a>. Known for integration with a wide variety of apps.</li> <li><a target="_blank" href="https://www.zoho.com/us/expense/" rel="noopener">Zoho Expense</a>. Can automate T&amp;E reimbursements through policy controls.</li> <li><a target="_blank" href="https://www.fylehq.com/" rel="noopener">Fyle</a>. Known for deep accounting integrations.</li> <li><a target="_blank" href="https://www.spendesk.com/expense-management-software/" rel="noopener">Spendesk</a>. Spend/expense management with cards, approvals, and real-time visibility.</li> </ul> <h3>Performance management and talent management</h3> <ul class="default-list"> <li><a href="https://lattice.com/" target="_blank" rel="noopener">Lattice</a>. Widely used by mid-market-sized organizations.</li> <li><a href="https://www.performyard.com/" target="_blank" rel="noopener">PerformYard</a>. Can accommodate flexible review cycles.</li> <li><a href="https://www.bamboohr.com/platform/performance-management/" target="_blank" rel="noopener">BambooHR</a>. Provides lightweight performance module for SMBs.</li> <li><a target="_blank" href="https://workleap.com/performance" rel="noopener">Workleap Performance</a>. Can accommodate 360 feedback; known for analytics.</li> <li><a target="_blank" href="https://resources.workable.com/backstage-at-workable/performance-management" rel="noopener">Workable</a>. This popular ATS system now has HR features for talent management.</li> </ul> <h3>Employee engagement and recognition</h3> <ul class="default-list"> <li><a target="_blank" href="https://bonusly.com/" rel="noopener">Bonusly</a>. Recognition and rewards with culture analytics.</li> <li><a target="_blank" href="https://nectarhr.com/recognition-rewards/rewards" rel="noopener">Nectar</a>. Peer recognition and rewards for SMBs.</li> <li><a target="_blank" href="https://www.qualtrics.com/employee-experience/talent-support/" rel="noopener">Qualtrics</a>. Features that help turn employee analytics into action plans.</li> <li><a target="_blank" href="https://www.kudos.com/" rel="noopener">Kudos</a>. Recognition platform with surveys and integrations.</li> <li><a target="_blank" href="https://www.cultureamp.com/platform" rel="noopener">Culture Amp</a>. Engagement surveys, analytics, and EX suite.</li> </ul> <h3>Human capital management</h3> <ul class="default-list"> <li><a target="_blank" href="https://www.workday.com/en-us/products/human-capital-management/overview.html" rel="noopener">Workday</a>. Enterprise HCM suite enhanced by AI.</li> <li><a target="_blank" href="https://www.oracle.com/human-capital-management/" rel="noopener">Oracle Cloud HCM</a>. Unified cloud HCM.</li> <li><a target="_blank" href="https://www.sap.com/products/hcm.html" rel="noopener">SAP SuccessFactors</a>. Comprehensive cloud HCM.</li> <li><a target="_blank" href="https://www.ukg.com/solutions" rel="noopener">UKG (Pro)</a>. HCM + workforce management at scale for organizations of all sizes.</li> <li><a target="_blank" href="https://www.dayforce.com/" rel="noopener">Dayforce</a>. Global HCM platform (pay, HR, time, talent).</li> </ul> <h3>Human resources information system</h3> <ul class="default-list"> <li><a target="_blank" href="https://namely.com/" rel="noopener">Namely</a>. HRIS for mid-sized U.S. companies; core HR.</li> <li><a target="_blank" href="https://www.bernieportal.com/" rel="noopener">BerniePortal</a>. Provides benefits administration and compliance for small HR teams.</li> </ul> <p><i>This </i><a href="https://www.techtarget.com/searchhrsoftware/How-to-choose-an-HR-software-system"><i>buyer's guide for HR software</i></a><i> will help you identify your organization's needs and pinpoint which software features your HR department will need and which you can do without.</i></p> </section> HR technology (human resources tech) refers to the hardware and software that support an organization's human resource management (HRM) functions. https://cdn.ttgtmedia.com/visuals/digdeeper/2.jpg https://www.techtarget.com/searchhrsoftware/definition/HR-technology Wed, 29 Apr 2026 15:00:00 GMT Mon, 20 Apr 2026 13:11:00 GMT <p>While the labor market is in flux, companies must still use any advantage they can to find and hire the best candidates, and applicant tracking systems can help them succeed. Capabilities such as AI can potentially save recruiters time, and tools for text messaging candidates and asking current employees for referrals can help companies improve their recruiting efforts.</p> <p>Some vendors offer standalone ATSes, while some HR software vendors include an&nbsp;<a href="https://www.techtarget.com/searchhrsoftware/definition/applicant-tracking-system-ATS">ATS</a> module as part of a larger offering. CHROs should learn as much as possible about each product so they can make an informed decision about <a href="https://www.techtarget.com/searchhrsoftware/tip/Steps-for-implementing-an-applicant-tracking-system">which ATS is right for their company</a>.</p> <section class="section main-article-chapter" data-menu-title="What are applicant tracking systems?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What are applicant tracking systems?</h2> <p>An applicant tracking system is software for&nbsp;<a href="https://www.techtarget.com/searchhrsoftware/feature/7-talent-acquisition-and-recruitment-trends">managing the recruiting</a>&nbsp;and hiring process. ATS users have different functions available to them based on their role in the recruitment process. For example, a recruiter can use the ATS to post a job, review applications, communicate with candidates and offer the job to the top candidate. Candidates can use the ATS to review an organization's job openings and apply for the ones that match their education, skills and experience. Candidates might also use the ATS to communicate with hiring teams and sign offers of employment. Managers will typically review resumes and add notes based on their interactions with candidates.</p> <p>The market for applicant tracking systems is large, with some vendors focused on providing standalone ATSes and others including the ATS as part of a&nbsp;<a href="https://www.techtarget.com/searchhrsoftware/definition/talent-management">talent management</a>&nbsp;suite. Standalone systems often have greater depth of functionality, while suites provide a consistent look and feel across the ATS and other modules and keep all HR data in one system, which can reduce the need for rekeying data.</p> <p>Applicant tracking systems were originally developed to automate the many steps in the recruitment process. Modern ATSes provide additional features, such as advanced branding options, diversity and inclusion tools, and integration with complementary systems, such as background check services and human resource information system (<a href="https://www.techtarget.com/searchhrsoftware/definition/HRIS">HRIS</a>) applications. They may also offer CRM (candidate relationship management) functionality to help companies engage past and passive candidates.</p> <p><a href="https://www.techtarget.com/searchhrsoftware/tip/Tips-for-writing-an-RFP-for-an-ATS-with-template">Vendors increasingly offer</a>&nbsp;AI and machine learning capabilities for tasks such as reviewing resumes, writing job descriptions, identifying top candidates for open positions and communicating with candidates. Reporting and dashboards have also become increasingly sophisticated.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/applicant_tracking_system_functions-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/applicant_tracking_system_functions-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/applicant_tracking_system_functions-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/applicant_tracking_system_functions-f.png 1280w" alt="Graphic of the functions of an applicant tracking system." height="364" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>An ATS digitizes and often automates the main steps of the recruitment process and stores candidate data in a central location. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="16 of the top applicant tracking systems"> <h2 class="section-title"><i class="icon" data-icon="1"></i>16 of the top applicant tracking systems</h2> <p>The list below consists primarily of companies that focus on the ATS market, so vendors of HRISes and&nbsp;<a href="https://www.techtarget.com/searchhrsoftware/definition/human-capital-management-HCM">human capital management</a>&nbsp;suites that include an ATS module do not appear on this list, which is presented in alphabetical order. Vendors were chosen based on information from sources such as Capterra, G2 and Gartner, as well as vendor websites and the author's personal experience working with ATSes.</p> <h3>1. Avature</h3> <p>Avature was founded in 2005 by the co-founder of HotJobs.com, and the software first focused on engaging candidates and sourcing passive ones. Now Avature users can automate the hiring process and customize the system to meet their companies' unique needs.</p> <p>The software also includes functions for contingent workforce management, onboarding, performance management and succession planning, as well as a recruiting events management feature for planning, promoting and tracking the outcomes of recruiting events.</p> <h3>2. Breezy</h3> <p>Breezy has more than 17,000 clients in over 80 countries. The software enables users to communicate with candidates by text and email, and it offers templates for various HR and talent acquisition interactions.</p> <p>The system also integrates with diversity, equity and inclusion (<a href="https://www.techtarget.com/searchhrsoftware/definition/diversity-equity-and-inclusion-DEI">DEI</a>) job sites and offers features to help attract a diverse candidate base, including deleting information such as gender from job applications to help prevent bias. The vendor also offers an onboarding module to welcome new hires to the company.</p> <h3>3. ClearCompany</h3> <p>ClearCompany was founded in 2004 as HRM Direct, and its talent management suite includes an ATS, onboarding, background checks, performance management, learning management, employee engagement and compensation.</p> <p>The system supports video interviews and text messaging with candidates, and &nbsp;offers English, French and Spanish candidate communication. ClearCompany makes it easy to brand offer letters, even if a company has multiple locations.</p> <p>The software also includes AI capabilities for processes such as writing job descriptions and composing emails.</p> <h3>4. Greenhouse</h3> <p>Greenhouse offers a mobile app , over 500 prebuilt integrations and an open API so the software can connect to a company's HRIS and other applications such as Slack and DocuSign.</p> <p>The software also includes reporting and dashboards to&nbsp;<a href="https://www.techtarget.com/searchhrsoftware/tip/Metrics-to-calculate-your-applicant-tracking-system-ROI">help track the recruitment process</a>, scorecards to attempt to avoid bias in interviews, access to more than 1,000 job boards and an onboarding module.</p> <h3>5. ICIMS</h3> <p>ICIMS' talent acquisition system includes&nbsp;<a href="https://www.techtarget.com/searchhrsoftware/feature/Challenges-of-AI-in-recruitment">AI capabilities for identifying potential candidates</a>&nbsp; already in the database, interacting with candidates through a chatbot and providing insights across the platform. The system also includes other features that can help companies maintain a connection with internal and external talent, as well as onboarding capabilities.</p> <p>ICIMS also has a large number of partners that offer specialized services.</p> <h3>6. JazzHR</h3> <p>JazzHR is aimed at small businesses and has won awards for its offerings. It is owned by Employ Inc., which also offers other applicant tracking systems.</p> <p>The company's evaluation system can compare candidates and attempt to reduce bias in the hiring process using scorecards. The software also integrates with popular calendar applications for interview scheduling and supports an unlimited number of job listings and users, avoiding the need to pay additional fees if a company hires more recruiters.</p> <p>JazzHR also lets users request and receive referrals from employees' and recruiters' personal networks, track candidate progress and receive applications by text.</p> <h3>7. Jobvite</h3> <p>Jobvite's ATS lets users add extra functionality, including onboarding features for new hires, chatbots, CRM and video screening, among other additions. AI capabilities include searching the candidate database to identify and rank previous candidates, sending candidate messages and scheduling interviews with applicants.</p> <p>Recruiters can receive training and certification using the vendor's Jobvite Academy. Like JazzHR, Jobvite is owned by Employ Inc.</p> <h3>8. Lever</h3> <p>Lever is easy to use and maintain and includes built-in integrations with popular HR systems. Users can pull data from multiple Lever sources, such as a candidate profile or job offer, and push it to the company HRIS.</p> <p>The software also includes integrated candidate relationship management capabilities to help build long-term relationships with candidates who may be a fit for future positions as well as features that support DEI programs, such as evaluating whether the company is meeting its DEI goals. The software enables users to create multiple postings for one job, which could be helpful for companies that operate and hire in various locations.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/lever_dashboard.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/lever_dashboard_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/lever_dashboard_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/lever_dashboard.png 1280w" alt="Screen shot of Lever dashboard." height="479" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Lever can pull data from numerous sources into dashboards, like this one showing key hiring metrics. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>9. Manatal</h3> <p>Manatal uses AI to develop candidate profiles by mining data from social media and other sites and to offer recommendations about which candidates are the best fit for open jobs.</p> <p>The progressive web app design lets users access the software on any device, and Manatal is transparent about the system's performance uptime, providing a link on its homepage to a log of software issues, resolutions and improvements.</p> <h3>10. Pinpoint</h3> <p>Pinpoint offers multilingual applicant tracking software that includes a built-in onboarding feature to help simplify the process of completing new-hire forms and processes. The system also includes preconfigured integrations with job boards and an employee referral feature.</p> <p>Users can add any agencies to the system that the company uses to help fill vacancies and can customize the system's requisition approval process.</p> <h3>11. Recruitee</h3> <p>Recruitee offers an ATS as well as onboarding tools, e-signature functionality and AI capabilities that can help automate manual recruiting processes. Recruitee supports WhatsApp as a communication tool for the hiring process, which is unusual. Candidates can apply using WhatsApp and use it to chat with recruiters.</p> <p>Recruitee was formed by combining the companies KiwiHR, Javelo and Recruitee.</p> <h3>12. SeekOut</h3> <p>SeekOut was founded in 2016 by former Microsoft executives and engineers. The software uses AI to mine publicly available content on social media and other sources to help recruiters find passive candidates and build internal and external candidate profiles. The AI engine also matches internal and external candidates to open positions.</p> <p>SeekOut also includes tools to help companies meet their diversity recruiting goals, including the ability to analyze representation among candidates. The system's detailed employee profiles can foster employee development and support internal mobility programs.</p> <h3>13. SmartRecruiters</h3> <p>SmartRecruiters was acquired by SAP SE in 2025, and SAP says the software will be integrated into SAP SuccessFactors but remain available as a standalone ATS as well. The ATS can automate the full talent acquisition process, including&nbsp;<a href="https://www.techtarget.com/searchhrsoftware/definition/recruitment-marketing">recruitment marketing</a>, offer management, onboarding and compliance. The software also offers interview scheduling capabilities and interview scorecards to attempt to avoid bias.</p> <p>SmartRecruiters' AI can carry out resume screening, and a chatbot can communicate through text and WhatsApp. A central inbox captures all candidate communication, regardless of the communication method.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/smart_recruiters_screenshot.jpg"> <img data-src="https://www.techtarget.com/rms/onlineimages/smart_recruiters_screenshot_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/smart_recruiters_screenshot_mobile.jpg 960w,https://www.techtarget.com/rms/onlineimages/smart_recruiters_screenshot.jpg 1280w" alt="SmartRecruiters Discovery screen shot." height="315" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>SmartRecruiters Discovery scans candidate databases and talent communities to suggest strong candidates. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>14. Taleo</h3> <p>Founded in 1996 and acquired by Oracle in 2012, Taleo possesses one of the largest client bases in the talent acquisition industry.</p> <p>Taleo's ATS offers a wide range of configuration options and integrations with third-party vendors. The software uses AI to parse resumes and award points based on keywords. The software can also assign more points to certain words if necessary.</p> <h3>15. Trakstar</h3> <p>Trakstar is owned by Mitratech, and the vendor's website claims Trakstar has over 3,000 customers. Its talent management suite includes an ATS as well as performance management, learning and workforce analytics modules.</p> <p>The ATS, Trakstar Hire, can post open positions in multiple locations simultaneously, and the software can parse a candidate's email and accompanying resume to automatically create a candidate profile. Users can add a talent sourcing partner to the ATS, so all recruiting takes place in one system.</p> <h3>16. VidCruiter</h3> <p>VidCruiter's end-to-end interview platform makes it easy to incorporate video into the hiring process, including videos of candidates answering prescreening questions.</p> <p>Candidates can also use the platform to take online skill tests, with or without a proctor. If candidates complete skills assessments without a live proctor, the software can limit and track candidates' actions. For example, VidCruiter can prevent candidates from pasting in answers and track instances of a candidate switching tabs or applications. It also has a tool for checking whether a candidate is a deepfake.</p> <p>The platform can help plan virtual events and automate the reference-checking process.</p> <p><i>Eric St-Jean is an independent consultant with a particular focus on HR technology, project management and Microsoft Excel training and automation. He writes about numerous business and technology areas.</i></p> </section> Modern ATSes provide features, such as advanced branding options, diversity and inclusion tools, and integration with complementary systems. Learn the top products. https://cdn.ttgtmedia.com/rms/onlineimages/check_g1205300933.jpg https://www.techtarget.com/searchhrsoftware/tip/Top-16-applicant-tracking-systems Fri, 17 Apr 2026 11:30:00 GMT <p>Even well-planned change management initiatives can encounter setbacks. CHROs must ensure they and their teams plan for potential change management risks to reduce their impact.</p> <p>Possible challenges include potential legal ramifications from reductions in force, insufficient employee training for new technology and issues with benefits changes. These problems can lead to major issues such as noncompliance. However, many of these change management risks can be mitigated if <a href="https://www.techtarget.com/searchhrsoftware/tip/How-HR-can-serve-a-critical-role-in-change-management">CHROs understand them</a> and take proactive steps to prevent them.</p> <p>The following change management risks commonly hinder the execution of company changes.</p> <section class="section main-article-chapter" data-menu-title="1. Lack of understanding of legal ramifications"> <h2 class="section-title"><i class="icon" data-icon="1"></i>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lack of understanding of legal ramifications</h2> <p>HR faces legal risks whenever employees are let go from their company.</p> <p>Prior to layoffs, CHROs and their company's legal counsel must conduct an adverse impact analysis to determine whether a reduction in force disproportionately affects protected employee classes. Laying off employees who are members of protected classes or disproportionately laying off members of a certain demographic group can result in litigation.</p> <p>CHROs should also document objective criteria that could <a href="https://www.techtarget.com/searchhrsoftware/tip/4-benefits-of-HR-following-change-management-practices">help the company defend its decisions</a>.</p> </section> <section class="section main-article-chapter" data-menu-title="2. Insufficient employee training"> <h2 class="section-title"><i class="icon" data-icon="1"></i>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insufficient employee training</h2> <p>Implementing new company technology, such as an ERP system, often requires employees to acquire new skills. A lack of employee training can hinder <a href="https://www.techtarget.com/searchhrsoftware/tip/The-most-common-HR-change-management-models">the adoption of new systems or processes</a>.</p> <p>To prevent this problem, the CHRO should ask the company's CFO to provide the financial resources for adequate training, direct HR managers <a href="https://www.techtarget.com/searchhrsoftware/feature/The-AI-skills-gap-is-getting-worse-Why-and-what-to-do">to identify skills gaps</a> and schedule employee training.</p> </section> <section class="section main-article-chapter" data-menu-title="3. Lack of understanding of employee benefits requirements"> <h2 class="section-title"><i class="icon" data-icon="1"></i>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lack of understanding of employee benefits requirements</h2> <p>CHROs must ensure that their companies take state and international benefits requirements into account during transactions such as mergers or acquisitions.</p> <p>Most M&amp;A agreements mandate that benefits of equal value be offered across corporate hierarchies. However, benefit requirements differ from one U.S. state to another, and employees located in multiple countries make the situation even more challenging.</p> <p>CHROs might need to budget for additional benefits providers, many of whom will be offshore, to ensure that benefits are implemented consistently and in compliance with local labor laws.</p> </section> <section class="section main-article-chapter" data-menu-title="4. Financial penalties for technology changes"> <h2 class="section-title"><i class="icon" data-icon="1"></i>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial penalties for technology changes</h2> <p>Companies involved in a merger often have contracts with different vendors, which can require integrating technology systems or migrating applications.</p> <p>However, these changes could lead to early contract termination with some technology vendors. The CHRO must ensure that their company's IT department has determined whether early cancellation will incur penalties and that their organization budgets accordingly so it does not face unexpected expenses.</p> </section> <section class="section main-article-chapter" data-menu-title="5. Employee resistance"> <h2 class="section-title"><i class="icon" data-icon="1"></i><strong>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </strong><strong>Employee resistance</strong></h2> <p>A company might change technology platforms because of new services or better competitor pricing. However, employees and customers could be unhappy with this change.</p> <p>The CHRO should instruct HR managers to respond to employee complaints by candidly explaining <a target="_blank" href="https://www.indeed.com/career-advice/career-development/communicate-change-in-the-workplace" rel="noopener">why the new technology is needed</a><strong>. </strong></p> <p>By identifying and mitigating change management risks early, CHROs can reduce disruption, maintain compliance and improve the success of enterprise initiatives.</p> <p><i>Lynda Spiegel is a freelance writer and former global HR executive for financial services, telecommunications and SaaS companies.</i></p> </section> Change management risks can derail initiatives and drive compliance issues, costs and employee resistance. Learn how CHROs can identify, mitigate and reduce their impact. https://cdn.ttgtmedia.com/rms/onlineimages/maze_g1289937803.jpg https://www.techtarget.com/searchhrsoftware/tip/5-change-management-risks-CHROs-must-plan-for Thu, 16 Apr 2026 09:00:00 GMT <p>Neither potential employers nor job searchers can avoid AI in the dance that is today's sourcing, recruiting, applying and interviewing. Yet, like all new disruptive technologies, there is a disparity in the degree to which AI is applied within applications. Likewise, there is the inevitable gap between early and late adopters, compounded by business maturity level, user readiness and training, and the perceived ability of AI to address current issues.</p> <p>While vendors were busy either bolting AI features to their products or extending their AI native-built applications over the past year, two of my favorite companies were acquired: Paradox, with its leading AI conversational assistant Olivia, was acquired by Workday, and SmartRecruiters, a longtime favorite, was bought by SAP. Both bring distinctive, proven AI capabilities to these companies' product offerings.</p> <section class="section main-article-chapter" data-menu-title="Considerations for setting purchase criteria"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Considerations for setting purchase criteria</h2> <p>What should CHROs look for when seeking AI in talent acquisition products in 2026?</p> <p>There are four levels of AI maturity, varying from <i>assistive AI</i>, which<b> </b>provides suggestions, recommendations, and summaries; <i>copilots</i> that execute tasks when prompted by a human; <i>semi-agentic models</i> that proactively run multi-step workflows with human oversight; and totally <i>autonomous agents</i> that execute end-to-end processes with minimal human intervention. CHROs should be aware of these differences when choosing products. Many vendors claim to have agents but instead deliver copilots.</p> <h3>The ubiquitous chatbot</h3> <p>Chatbots are universal, and many job candidates say they prefer chatting with a bot over talking to a human -- to a point. While early chatbots were often little more than pop-ups that gave people a menu of choices from which to access more information, today AI adds <a href="https://www.techtarget.com/searchenterpriseai/definition/natural-language-processing-NLP?Offer=ab_MeteredFormCopyDef_var3">natural language processing</a> to interpret questions and give more specific, tailored responses to people searching for information.</p> <p>A chatbot is a reactive, conversational interface that can answer questions or complete simple tasks only when prompted by a user. Paradox's bot, Olivia, is a case in point. It can manage an entire hiring process for an hourly worker in a series of friendly text conversations, though not without the potential for <a target="_blank" href="https://biztechweekly.com/mcdonalds-hiring-chatbot-olivia-data-breach-exposes-64m-applicants-revealing-critical-llm-security-flaws-in-recruitment-systems/" rel="noopener">security breaches</a> and other risks. StepStone's Mya, SmartRecruiters' Winston, SAP's Joule (which will now benefit from Winston's recruiting specialty), Beamery's Ray and iCIMS' Digital Assistant, which automate self-service, qualification screening and interview scheduling, are just a few among many.</p> <p>You can expect any recruiting system to include a bot that can suggest jobs to candidates, assist them in applying, update their progress through the hiring cycle, schedule and even conduct interviews, and onboard them -- whether or not the bot has a classy name.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/the_good_and_not_so_good_of_ai_recruiting_tools-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/the_good_and_not_so_good_of_ai_recruiting_tools-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/the_good_and_not_so_good_of_ai_recruiting_tools-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/the_good_and_not_so_good_of_ai_recruiting_tools-f.png 1280w" alt="Chart showing pluses and minuses of AI recruiting tools" height="246" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>AI brings major benefits to recruiting but also carries significant risk. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>GenAI: Master content generator</h3> <p>Generative AI, which produces new content, such as text, images and program code, is proving a boon to recruiters. It can create personalized correspondence, engaging job descriptions, as well as offer and rejection letters.</p> <p>GenAI is also useful to candidates for creating resumes -- including nefarious ones who list fake qualifications to match job requirements for which they lack the necessary skills. Just as it is a time-saver for recruiters, it enables applicants to send out many more tailored resumes and cover letters than ever before. On the downside, this often leads to swamping recruiters with mediocre candidates.</p> <p>Examples of GenAI tools include ChatGPT, Gemini and Claude. While AI-generated content should always undergo human review, these are effective labor-saving tools for the talent acquisition process.</p> <p><iframe title="How AI amplifies resume fraud and other job seeker cheating" allowtransparency="true" height="150" width="100%" style="border: none; min-width: min(100%, 430px); height: 150px;" scrolling="no" data-name="pb-iframe-player" src="https://www.podbean.com/player-v2/?i=cymcw-1a126cd-pb&amp;from=pb6admin&amp;pbad=0&amp;share=1&amp;download=1&amp;rtl=0&amp;fonts=Arial&amp;skin=1&amp;font-color=auto&amp;logo_link=episode_page&amp;btn-skin=2baf9e" loading="lazy"></iframe></p> <h3>Copilots: The move to decision support</h3> <p>But then, what are copilots? On the one hand, <i>copilot</i> is specific branding used primarily by Microsoft for its suite of AI-powered assistants. Like ChatGPT and the others mentioned above, Microsoft Copilot is an example of generative AI that searches and delivers information in response to questions. However, unlike general-purpose GenAI tools like ChatGPT, copilots are designed to operate with specific work data in the vendor's ecosystem.</p> <p>For example, iCIMS Copilot is talent acquisition-specific: It generates interview questions for open requisitions for specific roles based on defined criteria, including proficiencies, level of experience, skills, industry and more. Beyond just generating content, iCIMS Copilot can recommend changes in real time as it dynamically marks up users' work. For example, if you ask the tool to make a senior-level job description more junior, it will suggest changes that cater to less experienced candidates.</p> <p>Other AI products branded as copilots include the following:</p> <ul class="default-list"> <li><b>Findem Copilot </b>focuses on automating and personalizing candidate sourcing and pipeline building.</li> <li><b>Paychex Recruiting Copilot, </b>developed in partnership with Findem,<b> </b>uses AI to analyze candidate data and help hiring teams find and match talent faster.</li> <li><b>Talentech AI Copilot</b> assists recruiters and HR teams with job ad creation, screening, generating questions for structured interviews, campaign design, talent pool analysis, HR-related FAQs and more.</li> <li><b>Recruit Copilot</b> is standalone software that<i> </i>focuses on automating resume screening and candidate ranking to accelerate hiring.</li> </ul> <p>Similar functionality is available from many vendors, but these tools might not be called <i>copilots</i>. AI-based assistants by Eightfold, SeekOut and others serve similar purposes, in that they help recruiters write job ads, screen candidates, create interview questions, summarize candidate data, etc. And they are getting smarter: PageUp recently announced Paige, which uses generative and agentic AI to support recruiters, from candidate sourcing to automating routine steps. Like other GenAI tools, it provides on-demand answers to queries, skills matching, resume summarization and content suggestions, but it also -- through agentic AI -- automates repetitive duties (e.g., filling fields, job creation workflows) and suggests next-best actions to speed up hiring.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/how_hr_vendors_will_use_generative_ai-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/how_hr_vendors_will_use_generative_ai-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/how_hr_vendors_will_use_generative_ai-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/how_hr_vendors_will_use_generative_ai-f.png 1280w" alt="Graphic listing how HR vendors will use generative AI." height="342" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Performance reviews and recruiting are two of the more common early applications of generative AI in HR. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>The rise of agentics</h3> <p>An AI agent is software that can understand goals, make decisions and take actions autonomously -- often across multiple steps and tools -- to achieve a desired outcome on the user's behalf. It interacts with its environment, collects data and uses the data to perform self-determined tasks to meet predetermined goals.</p> <p>AI agents are action-oriented and interact with other agents. They analyze the collected data to predict the best outcomes that support the goals and then use the results to formulate the next action they should take.</p> <p>The shift from assistive AI (e.g., suggesting templates or matching candidates) to agentic AI adds the following capabilities:</p> <ul class="default-list"> <li>Agents can interact directly with candidates.</li> <li>They can perform multi-step tasks without explicit human control at every step.</li> <li>They can integrate deeply with CRM, applicant tracking systems (<a href="https://www.techtarget.com/searchhrsoftware/definition/applicant-tracking-system-ATS">ATSes</a>) and other HR systems to orchestrate workflows from end to end.</li> </ul> <p>Some AI agents learn over time; some don't. Learning is a design choice, not a requirement. In general, there are three types: static agents that follow rules but don't update themselves, agents that learn from explicit or implicit feedback, and agents that learn continuously. It's imperative to understand agent behavior in the products you buy.</p> <p>In addition to vendors discussed below, companies with an increasingly strong agentic agenda include SpiderX AI, which focuses on multimodal, autonomous recruiting agents; Cielo, with agents tied to talent acquisition workflows; and Torre.ai, with agentic recruiting from sourcing to placement.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/hrsoftware-recruitment.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/hrsoftware-recruitment_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/hrsoftware-recruitment_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/hrsoftware-recruitment.png 1280w" alt="Diagram of the steps in the recruitment process" height="353" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>AI plays a role in many steps of the recruiting process, especially job posting, candidate screening and interview scheduling. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Top contenders for 2026"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Top contenders for 2026</h2> <p>There are many ways that CHROs can evaluate products and vendors, including breadth or depth of functionality, technology, price, global availability, the software's sophistication and complexity, the degrees of support and training provided and the vendor's reputation for integrity or eco-consciousness, among others. Key for any buyer is that the product -- with or without AI -- addresses all of the talent acquisition pain points that the organization faces.</p> <p>Below is a review of products that merit consideration in 2026, chosen because they are from established vendors, they are comprehensive, or, in my judgment, they represent the best of today's leading edge. These products all tend to address the needs of at least three distinct user groups: candidates, recruiters and hiring managers, and already-hired employees.</p> <p>Here is what you can expect from any competitive suite: support for sourcing, job posting, data parsing, candidate shortlisting or ranking, multichannel communications, career site and mobile device chatbots, and intuitive UIs geared to the respective needs of the candidate, hiring manager and recruiter. <a href="https://www.techtarget.com/searchhrsoftware/feature/What-HR-must-know-about-recruiting-analytics">All deliver analytics</a> relevant to their product scope. Expect AI-supported scheduling of interviews and follow-up conversations, along with immediate and totally automatic conducting of interviews without recruiter intervention. Many have extended their capabilities to current employees to meet the growing demand for career growth and mobility.</p> <p>Look for agent-managed workflows and review the vendor's agentic AI roadmap for how it might meet your requirements. The goal here is not to cover every feature or function, but to differentiate products based on points of uniqueness or specific strengths and to present vendors in alphabetical order, not ranked.</p> <h3>Beamery</h3> <p>The Beamery suite covers talent acquisition, internal mobility and redeployment,<b> </b>skills analytics and workforce planning, and predictive talent pipelines. Last summer, Beamery launched its Workforce Intelligence Suite, which includes a Task Intelligence module that breaks down roles into tasks. According to Beamery, layering this capability with skills and market data enables HR leaders to build a digital organizational twin of their workforce, modeling how best to apply AI alongside people, as well as reskill and redeploy workers with precision to build a more adaptive organization.</p> <p>For organizations transitioning to a skills-first approach, Task Intelligence provides the following capabilities:</p> <ul class="default-list"> <li><b>Role-to-task mapping.</b> This function analyzes internal human capital management (HCM) systems, job descriptions and planning inputs to break complex roles into core tasks and the skills required to perform them.</li> <li><b>Enriched task-level intelligence.</b> Combining internal data with real-time labor market signals enables companies to evaluate each task's demand, effort, skill requirements and automation potential.</li> <li><b>Automation opportunity analysis.</b> This function identifies high-effort, high-frequency tasks that are strong candidates for automation or augmentation and estimates time as well as cost savings.</li> <li><b>Reskilling and redeployment pathways.</b> This capability pinpoints business-critical tasks and matches them to available talent with the relevant skills.</li> <li><b>Scenario modeling with a digital organizational twin.</b> Merging task-level data with Beamery's Skills Intelligence and Talent Market Insights modules enables leaders to simulate the impact of workforce changes before they act.</li> </ul> <p>Beamery also uses AI to reveal <a href="https://www.hrdive.com/news/human-skills-gaps-could-threaten-ai-adoption-learning/758016/" target="_blank" rel="noopener">skills gaps</a> and critical role vulnerability, but the ability to combine real-time external labor market insights with internal HR data to forecast skill availability makes Beamery's latest offering stand out.</p> <p>Last summer's announcement also included Ray, an AI assistant that provides contextual recommendations across sourcing, hiring, workforce planning and upskilling.</p> <h3>Eightfold AI Talent Intelligence Platform</h3> <p>Eightfold markets a talent intelligence platform that enables "holistic" talent strategies. Through its proprietary global data set of more than 1.5 billion talent profiles and skills, Eightfold's AI-native technology generates recommendations to help employers decide how and when to build, buy or borrow talent. It employs a skills-based framework that matches people to opportunities, including full-time, part-time, project and gig work. Eightfold uses that data to understand the availability, maturity, relevance, learnability and evolution of skills in specific organizations and throughout the global market.</p> <p>Eightfold's Talent Design uses a skills-based approach to drive decision-making for upskilling, reskilling, hiring, staffing of contractors and attaining diversity, equity and inclusion (DEI) goals. Additionally, Talent Design examines skill adjacency and context to determine what capabilities will be needed in the future as an organization grows. The platform also enables self-learning, data-driven updates that help to ensure consistent, unbiased evaluations of individual capabilities and the ability to learn against globally standardized job descriptions and requirements.</p> <p>The <a href="https://www.techtarget.com/searchenterpriseai/opinion/The-legal-mistake-courts-should-avoid-in-Eightfold-AI-lawsuit">Eightfold AI</a> talent intelligence platform and accompanying suite of applications is available in 155 countries and 24 languages. One of the signature applications, Talent Management, enables employees to find reskilling and upskilling opportunities across courses, mentors and projects based on current skills and career aspirations. The goal of people developing their own skills and assuming responsibility for their career growth is addressed through curated opportunities for continuous learning. In addition, Talent Management includes capabilities for succession planning, helping organizations to better understand the potential of their workforce on a global scale and to guide individual employees toward further learning, skill development and career opportunities.</p> <p>The other main module of the talent intelligence suite, Talent Acquisition, represents the original functionality that Eightfold AI focused on when it was founded in 2016. Eightfold Talent Acquisition provides functions for sourcing, CRM, applicant tracking -- e.g., requisition management, job distribution, offer management, etc. -- interview scheduling and more. Eightfold AI also introduced copilots that use GenAI to improve productivity and the user experience for candidates, employees and recruiters.</p> <p>All in all, Eightfold's semi-agentic intelligence layer acts more as a brain for strong decision-making than an autonomous executor of action. As a bonus, the platform integrates with Workday, SAP SuccessFactors Recruiting, Oracle Taleo, Oracle Fusion Cloud Recruiting, Greenhouse and others.</p> <h3>Employ</h3> <p>Employ was created to consolidate the following recruiting products across different market segments, small business through enterprise:</p> <ul class="default-list"> <li><b>JazzHR</b> typically focuses on the ATS needs of SMBs. It uses basic AI to streamline workflows like resume parsing, knockout questions and simple candidate profile summaries, and it provides automated candidate evaluations tied to job descriptions.</li> <li><b>Lever</b> targets midmarket and growth companies focused on candidate engagement. Its differentiator is blending ATS with CRM automation. AI supports that two-way recruiting cadence.</li> <li><b>Jobvite</b> is positioned as an end-to-end, enterprise-grade recruiting platform. It embeds AI across the entire hiring lifecycle, including sourcing, engagement, screening and interview processes.</li> </ul> <p>These brands operate independently, with separate product lines and customer bases, but they share some core AI capabilities:</p> <ul class="default-list"> <li><b>Candidate fit scoring.</b> All three can employ the Talent Fit feature to compare resumes to job descriptions using <a href="https://www.techtarget.com/whatis/definition/large-language-model-LLM">large language models</a> and produce a fit score and guidance, purportedly without human bias.</li> <li><b>AI-driven screening and automation.</b> Employ is rolling out "AI companions" for screening, interviewing and other functions, which can surface top talent and provide candidate feedback across platforms, starting with Lever and expanding to the others.</li> <li><b>Responsible AI governance.</b> Employ's AI suite uses tools like IBM watsonx.governance for transparency and bias monitoring.</li> </ul> <h3>hireEZ</h3> <p>HCM software vendor hireEZ unveiled EZ Agent, a semi-autonomous agentic recruiting application built into its AI-first talent acquisition platform, to automate sourcing, screening, outreach, scheduling, analytics and other recruiting tasks while keeping human recruiters in control of strategic decisions.<b> </b>In addition to sourcing, search refinement and pipeline rebuilding, the agent can proactively make recommendations and execute workflow while keeping the recruiter in the approval loop for outreach and actions.</p> <p>EZ Agent improves with each interaction, refining parameters and understanding recruiter preferences to enhance outcomes. Operating with contextual understanding enables it to make decisions and execute multi-step hiring processes without constant human input. For instance, it adjusts strategies in real time based on candidate engagement and recruiter feedback, and it actively manages workflows such as sourcing candidates, launching campaigns and screening applicants. Its ResumeSense feature flags inconsistencies in resumes and highlights key qualifications for recruiter review, maintaining both precision and transparency.</p> <p>Other highlights of the hireEZ platform include the following:</p> <ul type="disc" class="default-list"> <li><b>Generative AI for job descriptions.</b> This function creates engaging, inclusive job descriptions tailored to attract diverse talent.</li> <li><b>Integration enhancements. </b>Seamless synchronization with ATS platforms provides two-way data updates, eliminating the need to switch systems during recruiting.</li> <li><b>Text campaigns.</b> hireEZ's texting feature, described as the "dating-app swipe" of recruiting, offers direct, high-stakes communication to stand out in competitive markets.</li> </ul> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/Aqp81W-U3Hg?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <h3>iCIMS</h3> <p>iCIMS offers an enterprise-grade recruiting platform with embedded, end-to-end AI designed to help organizations hire more efficiently while maintaining transparency, control and compliance. iCIMS AI is built to support human decision-making, with a strong emphasis on responsible, explainable AI use across the hiring lifecycle.</p> <p>Key capabilities include the following:</p> <ul class="default-list"> <li><b>AI-driven candidate matching and ranking.</b> iCIMS AI analyzes candidate profiles across applicants, internal talent and past candidates to surface strong-fit matches while providing recruiters visibility into how recommendations are generated. AI outputs are designed to inform decisions, not replace them.</li> <li><b>Agentic AI sourcing with recruiter oversight.</b> The platform can automatically search internal databases to rediscover qualified candidates while ensuring recruiters retain control over outreach and selection decisions.</li> <li><b>Generative AI to support recruiter workflows.</b> Recruiters can use natural-language prompts to generate job descriptions, interview questions, candidate communications and search queries, helping teams reduce manual work without sacrificing quality or consistency.</li> <li><b>AI-enabled career site optimization.</b> The platform can automatically generate SEO-friendly job content and translate career-site experiences into multiple languages, expanding reach while maintaining consistency across regions.</li> <li><b>Built-in responsible AI framework.</b> iCIMS applies formal <a href="https://www.techtarget.com/searchenterpriseai/definition/responsible-AI">responsible AI</a> principles focused on transparency, bias mitigation, auditability and human-in-the-loop decision-making, helping organizations adopt AI in recruiting while meeting ethical and regulatory expectations.</li> </ul> <p>iCIMS is designed for large and complex organizations that require a scalable recruiting platform where AI improves speed and efficiency without compromising trust, compliance or human judgment. It was ranked No. 1 in ATS market share by Apps Run the World.</p> <h3>Oracle</h3> <p>Oracle is very likely the leader in overall enterprise-wide agentic AI at this writing. The agent roster includes job discovery, job fit advisor and interview management agents for internal mobility and recruiting; team sync advisor, team goals assistant, learning tutor and talent advisor agents in skilling and career development; and employee lifecycle policy analyst, succession planning advisor and payroll run analyst agents.</p> <p>As an example, Oracle Career Coach is an AI-powered capability in Oracle Fusion Cloud Recruiting designed to deliver a more personalized, intelligent candidate experience using agentic AI that works across the Oracle Fusion Cloud HCM suite to analyze candidates' skills, experience and interests -- in both internal and external talent pools -- to surface stronger job matches. This technology is expected to help organizations improve applicant quality, increase candidate engagement and give hiring teams deeper, data-driven talent insights.</p> <p>Oracle introduced the following new agents in the past year:</p> <ul class="default-list"> <li><a title="https://docs.oracle.com/en/cloud/saas/readiness/hcm/25d/recr-25d/25D-recruiting-wn-f40160.htm" target="_blank" href="https://docs.oracle.com/en/cloud/saas/readiness/hcm/25d/recr-25d/25D-recruiting-wn-f40160.htm" rel="noopener">Job applicant screening</a>, which lets users ask questions about an applicant's profile, including feedback responses and scores, lifecycle information, prior actions taken, authenticity detection, assessment and background check information.</li> <li><a target="_blank" href="https://www.oracle.com/news/announcement/oracle-ai-agents-help-hr-leaders-boost-workforce-productivity-and-enhance-performance-management-2025-09-16/" rel="noopener">Interview management</a>, which automates interview scheduling by coordinating interviewer availability, managing calendar invitations, resolving conflicts and sending reminders to candidates and interviewers.</li> <li>Job requisition analyst, which supports hiring managers by answering general and role-specific questions as well as providing guidance during job requisition creation.</li> </ul> <p>The agents all run on Oracle Cloud Infrastructure and are integrated into Oracle Fusion Cloud HCM workflows at no additional cost. Oracle was named the highest-ranked vendor for the extended AI innovations use case in Gartner's 2025 "Critical Capabilities for Talent Acquisition (Recruiting) Suites" report.</p> <h3>Phenom Applied AI</h3> <p>Phenom delivers an AI infrastructure built specifically for HR, covering talent acquisition, talent management and workforce intelligence. The company's approach centers on AI that adapts to each organization's industry context, regulatory requirements and the distinct needs of knowledge workers and frontline teams. It was named a top AI company of 2025 by <i>Software Magazine</i>.</p> <p>Rather than repurposing generic enterprise technology for HR, Phenom has developed its own AI-native infrastructure over the past decade. This foundation powers a unified experience from hire to retire, with proprietary ontologies that account for industry-specific nuances -- recognizing, for instance, that hiring nurses requires fundamentally different approaches than developing engineers or retaining retail associates.</p> <p>The vendor's deeply refined skills ontology helps HR teams identify and fill skills gaps, aids managers in designating successors and driving career progression, and assists employees in discovering personalized advancement opportunities. This intelligence extends into talent acquisition and across the full talent lifecycle: sourcing, screening, onboarding, development, internal mobility and retention.</p> <p>The platform integrates with recruiting workflows, enabling talent teams to match candidates to open roles internally or externally. By automating tasks like candidate sourcing, screening and scheduling, the system can potentially accelerate hiring while improving candidate experiences. Process mining capabilities surface optimization opportunities to improve conversion rates and hiring quality.</p> <p>Phenom X+ Agents represent the company's approach to more intelligent automation. Rather than simply analyzing data or completing tasks, these agents are specialists designed to work alongside HR teams and actively execute detailed workflows across the talent lifecycle. They handle complex processes autonomously while still under human supervision, sourcing passive candidates, conducting initial screenings through conversational AI, managing interview scheduling with real-time calendar coordination and providing recruiters with AI-generated interview guides that help reduce potential biases. After the interview, agents deliver summaries that flag relevant details based on job requirements and can detect inconsistent candidate responses.</p> <p>For high-volume frontline hiring, agents enable end-to-end automation where candidates search for jobs, apply, complete assessments built by Phenom's industrial-organizational psychologists, submit videos and schedule interviews -- all via chatbot or SMS, freeing recruiters to focus on evaluation and final hiring decisions. For knowledge worker roles requiring more customized engagement, agents adapt to provide tailored candidate experiences while giving recruiters AI-driven analysis during evaluation.</p> <p>New capabilities announced in late 2025 demonstrate how Phenom seeks to connect business strategy to talent execution. Enterprise Talent Optimization &amp; Work Redesign uses AI-driven task intelligence to analyze roles at the task level, revealing automation opportunities while connecting employee development to company objectives. Frontline Workforce Lifecycle &amp; Shift Scheduling moves beyond traditional app-based experiences into an agentic, conversational model that handles shift scheduling with built-in compliance, dynamic optimization and internal mobility integration.</p> <p>Its Unified Orchestration Engine introduces adaptive intelligence that handles exceptions in real time, combining decision engines with simulations and human-in-the-loop governance. When automation encounters exceptions -- such as a manager not showing up for an interview, resume-parsing failures or compliance rules needing enforcement -- the agents identify bottlenecks, create alternative pathways and maintain workflow momentum while preserving policy compliance and explainability.</p> <p>This approach reflects Phenom's focus on building an infrastructure that learns each organization's specific patterns and applies that understanding throughout the talent lifecycle. The goal is shifting HR teams from operational tasks to strategic decisions, with AI handling administrative work while recruiters and managers bring their expertise to candidate evaluation and hiring choices.</p> <h3>SeekOut</h3> <p>SeekOut provides an AI-powered talent search engine to help recruiters quickly find and hire the most qualified passive candidates. Recruiters can use natural- language prompts instead of writing complex Boolean logic -- e.g., "find senior Python engineers in Austin with AWS experience." This makes sourcing more intuitive, and the AI creates precise search criteria from job descriptions or descriptions of ideal candidates and matches them to relevant profiles.</p> <p>In addition to the generative AI common in today's applications, SeekOut Spot uses agentic AI combined with human expertise to automate candidate research, outreach, screening and engagement at scale, delivering qualified candidates faster than manual sourcing alone. AI-guided workflows help teams go from job description to search, shortlist and engagement, with intelligent recommendations at each step.</p> <p>SeekOut's AI supports talent mobility by uncovering internal candidates and recommending career pathways. AI insights and workflows tie directly into existing applicant tracking and HR systems.</p> <p>SeekOut's ability to locate and screen tech talent should be a draw for organizations that need technologists. With SeekOut's GitHub search, the app can provide and review code to better evaluate a potential applicant's technical prowess.</p> <h3>Workday</h3> <p>All the major contenders in the HCM market have integrated their own AI capabilities while considering build-or-buy decisions. Workday's decision to acquire Paradox, AI-native HiredScore, and document intelligence platform Evisort enabled it to augment its recruiting, expenses, succession and Workday optimize agents.</p> <p>The recruiting agent, for example, uses HiredScore AI to identify the most qualified candidates from both new applications and past talent pools. Since the Paradox acquisition closed on October 1, 2025, Workday has added two applications to its growing suite of AI offerings: Workday Paradox candidate experience agent and Paradox conversational ATS, both available through Workday for new and existing customers.</p> <p>Bringing HiredScore and Paradox into the Workday ecosystem connects the different stages of hiring into one coordinated process. HiredScore helps recruiters identify and prioritize the best-qualified candidates for a role. Paradox provides a conversational candidate experience to streamline hiring tasks such as answering candidate questions and scheduling interviews. These capabilities then feed directly into the Workday Recruiting module, which manages the final hiring and onboarding. This approach removes the need for disconnected tools and helps organizations manage everyone from frontline hourly workers to corporate professionals in a single system.</p> <p>Another tool, Workday Assistant, offers AI-powered, role-specific support to employees. It provides quick answers to HR questions and is accessible from any device. It also helps employees take faster action, offering company-specific guidance to complete complex tasks.</p> </section> <section class="section main-article-chapter" data-menu-title="Remember that AI is just another tool"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Remember that AI is just another tool</h2> <p>Today's AI-grounded tools cover every aspect of talent acquisition, including recruitment marketing, sourcing, job description management, candidate assessment and pre-screening. They also recommend positions within an organization to qualified applicants, generate offer and rejection letters, perform skills assessments, and provide career and learning assistance and direction -- all with far more sophisticated analytics than was available in the past.</p> <p>As a tool in today's recruiting and hiring products, AI is inescapable, but its forms vary within every chatbot, GenAI, copilot and agentic AI product on the market. And with <a href="https://www.hrdive.com/news/eightfold-ai-lawsuit-job-candidate-consumer-reports/810332/" target="_blank" rel="noopener">compliance, bias, privacy and security risks</a> increasing with each new advance in the technology, remember that the best product for you is not necessarily the one that ticks the most AI boxes.</p> <p>Finally, remember you are not buying a risk-free AI product; it is solely an underlying technology to help address the primary recruiting issues the organization faces. Buyers are responsible for the AI recruiting tool's transparent and ethical use.</p> <p><i>K</i><i>atherine Jones is an independent market analyst and consultant. She was an analyst at the Aberdeen Group and Bersin by Deloitte and partner at Mercer following a career in high-tech companies and higher education.</i></p> </section> AI now reaches every corner of recruiting and talent acquisition. Here's the latest on AI tools, from chatbots to agentic AI, plus details on products from 9 top vendors. https://cdn.ttgtmedia.com/rms/onlineimages/ai_a238006601.jpg https://www.techtarget.com/searchhrsoftware/tip/Top-AI-recruiting-tools-and-software-of-2022 Tue, 14 Apr 2026 13:00:00 GMT <p>Contact centers have evolved significantly over the past few years, requiring contact center agents to refine their customer service skills. To keep up with new forms of communication, hiring managers must ensure contact center agents have more than verbal communication and people skills.</p> <p>For example, writing and reading comprehension skills for email, chat and social media are growing in importance. Body language and visual observation skills are also important for video chat. Additionally, as many contact centers support hybrid and remote work models, agents must be comfortable collaborating digitally with supervisors and teammates.</p> <p>Agents must also understand and appreciate the benefits and limitations of <a href="https://www.techtarget.com/searchcustomerexperience/tip/Top-10-contact-center-platforms">new contact center software</a>, including knowledge management systems and CRM platforms. Increasingly, modern contact centers rely on digital communication channels, automation tools and AI-driven agent assist technologies. Agents must combine strong interpersonal skills with the ability to work effectively alongside these tools.</p> <section class="section main-article-chapter" data-menu-title="The importance of soft skills"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The importance of soft skills</h2> <p>When contact center agents interact with customers -- regardless of the channel of communication, where they work, or the contact center software and systems they use -- <a href="https://www.techtarget.com/searchcio/definition/soft-skills">soft skills</a> are of critical importance.</p> <p>An agent must resolve the issue and communicate in a manner that's understandable to the customer and shows care, understanding and confidence. It's important that agents don't sound robotic, and display empathy and caring when listening to a customer's issue and communicating the resolution.</p> <p>These contact agent soft skills are the "icing on the cake" in driving an outstanding customer experience.</p> </section> <section class="section main-article-chapter" data-menu-title="Most common contact center agent skills"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Most common contact center agent skills</h2> <p>Many basic contact center agent skills haven't changed during the past few years, but there are additional skills that contact center agents must have to successfully perform their job.</p> <p>Here are 10 key contact center agent skills that managers should look for when hiring.</p> <h3>1. Interpersonal skills</h3> <p>Contact center managers must look for agents with exceptional people skills who thrive on working with people to understand their issues -- whether the agent can relate to them or not -- and solve them.</p> <h3>2. Communication skills across channels</h3> <p>Contact center agents interact with customers across a variety of communication channels, including <a href="https://www.techtarget.com/searchunifiedcommunications/definition/inbound-call">inbound</a> and <a href="https://www.techtarget.com/searchcustomerexperience/definition/outbound-call">outbound calls</a>, email, web chat, text messaging, video, messaging platforms and social media customer service channels. Many of these channels require different types of communication skills from a listening and speaking perspective. While an individual agent doesn't need to excel at communicating in all these channels, they must exhibit the skills necessary for any channels they will support.</p> <figure class="main-article-image half-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/crm-customer_service_channels.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/crm-customer_service_channels_half_column_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/crm-customer_service_channels_half_column_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/crm-customer_service_channels.jpg 1280w" alt="Graphic listing six customer service channels: phone, email, chat or video chat, social media, customer self-service and mobile." height="209" width="279"> <figcaption> <i class="icon pictures" data-icon="z"></i>Contact center agents must communicate with customers across multiple service channels, including phone, email, chat or video chat, social media, self-service portals and mobile apps. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>3. Professional and courteous demeanor</h3> <p>Customers reaching out to a contact center might be frustrated and emotional, depending on the issue they're trying to resolve. Contact center agents should be sensitive to a customer's feelings, always have a courteous demeanor, and display empathy and patience when providing customer service, regardless of the channel of communication.</p> <h3>4. Excellent problem-solving skills</h3> <p>Customers often reach out to a contact center with complex issues that are difficult to explain. Agents must be able listen to the customer, identify the core issue, work independently and provide a resolution that serves both the customer and the organization. Contact center agents must have training in active listening so they can ask questions, clarify points and summarize what the customer said to ensure they have all necessary information to assist the customer. If they can't resolve a customer inquiry immediately, the agent should know how to find the solution. <a href="https://www.techtarget.com/searchcustomerexperience/tip/How-to-improve-the-contact-center-experience-for-customers">Customer satisfaction increases</a> if contact center agents are creative and go above and beyond to find answers for their customers.</p> <h3>5. Ability to learn, retain and apply large amounts of information</h3> <p>Agents must learn and retain a tremendous amount of information regarding products, services, policies and procedures. In cases in which they don't have an answer, agents must understand how to navigate across several systems -- such as AI-powered knowledge search tools or a knowledge management and CRM system -- to find the answer to the customer's inquiry.</p> <h3>6. Ability to accept and meet quantitative goals</h3> <p>The <a href="https://www.techtarget.com/searchcustomerexperience/tip/Top-7-call-center-agent-performance-metrics-to-track">contact center environment is extremely metric-driven</a>, so monitoring metrics and KPIs is important for the performance management process. Agents often have quantitative goals such as quality monitoring results, average handle time, attendance and occupancy that managers measure and reward them for. Agents must be willing to work in an environment <a href="https://www.techtarget.com/searchcustomerexperience/tip/Best-practices-for-call-center-monitoring">where their managers monitor</a>, track and report most of their activities.</p> <figure class="main-article-image half-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/signs_of_contact_center_burnout-h.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/signs_of_contact_center_burnout-h_half_column_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/signs_of_contact_center_burnout-h_half_column_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/signs_of_contact_center_burnout-h.png 1280w" alt="Illustration showing signs of contact center agent burnout such as decreased productivity, decreased focus, exhaustion and headaches." height="204" width="279"> <figcaption> <i class="icon pictures" data-icon="z"></i>Common warning signs of contact center agent burnout include reduced productivity, loss of motivation, exhaustion and difficulty focusing during customer interactions. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>7. Work in a highly structured environment</h3> <p>Contact center agents must adhere to strict schedules, deal with a large volume of transactions, have exceptional time management skills, and follow detailed attendance and punctuality policies. Agents should be monitored to ensure they're comfortable working in this type of <a target="_blank" href="https://www.genesys.com/article/absence-management-and-shrinkage-call-center-strategies" rel="noopener">structured environment</a>.</p> <h3>8. Flexibility</h3> <p>Organizations constantly change by rolling out new products, services and features to attract new customers and retain current ones. In most cases, agents receive notification of these changes in a timely manner, but there are many times when the customer knows about a change before an agent does. Agents must be flexible to deal with these instances and cannot be overwhelmed when surprises occur.</p> <h3>9. Comfortable working remotely</h3> <p>It's important to realize that at times it can be lonely and <a href="https://www.techtarget.com/searchcustomerexperience/tip/How-to-manage-remote-call-center-agents">remote workers might not have the same personal connections</a> as on-site workers. Additionally, not having the ability to have in-person meetings and coaching sessions requires the use of other communication techniques to support learning and engagement. New hires must be comfortable working remotely and have the skills and demeanor to succeed in this type of environment.</p> <h3>10. Good judgment and common sense</h3> <p>As contact centers use more advanced technology, agents must use tools in new ways and determine when something does or does not make sense.</p> <p>For example, <a href="https://www.techtarget.com/searchcustomerexperience/tip/How-agent-assist-technology-works-in-the-contact-center">agent assist technology offers automated recommendations</a> to a contact center agent following analysis of a customer inquiry. While these recommendations are often accurate, agents must evaluate them carefully to ensure they apply the best solution. Contact center agents must have strong judgement skills and common sense to ensure technology is used properly.</p> <p>Agents who combine empathy, problem-solving ability and adaptability are best positioned to deliver strong customer experiences.</p> <p><b>Editor's note:</b> <i>This article was updated in April 2026 to reflect the changing nature of contact center agent skills.</i></p> <p><i>Scott Sachs is president and founder of SJS Solutions, a consultancy that specializes in contact center strategy assessments and technology selection.</i></p> </section> Contact center agents must have a range of interpersonal and technological skills to interact with customers and resolve their issues quickly and with empathy. https://cdn.ttgtmedia.com/rms/onlineimages/customer_service03.jpg https://www.techtarget.com/searchcustomerexperience/answer/Nine-skills-every-call-center-agent-job-requires Tue, 14 Apr 2026 09:00:00 GMT <p>All change management initiatives require initial planning. Prior to any organizational change, chief HR officers (CHROs) need to work with their team and other leaders to devise a step-by-step change management strategy.</p> <p>Forming a strategy will <a href="https://www.techtarget.com/searchhrsoftware/tip/4-benefits-of-HR-following-change-management-practices">help the company</a> navigate the change with minimal disruption. Creating an effective strategy requires four steps: defining the reason for the change, identifying who will spearhead the initiative, determining the appropriate methods for communicating about the change and deciding how to handle employee resistance.</p> <section class="section main-article-chapter" data-menu-title="1. Define why the change is happening"> <h2 class="section-title"><i class="icon" data-icon="1"></i>1.&nbsp;&nbsp;&nbsp;&nbsp; Define why the change is happening</h2> <p>Senior leadership must first articulate why the proposed change needs to happen. The CHRO should take charge of this process.</p> <p>Defining why the change must happen will make it easier to create communication for employees about the change.</p> <p>During this process, CHROs can work with department managers to learn how the change will affect each team and potentially make adjustments to minimize negative impacts. For example, senior leaders might decide to delay a <a href="https://www.techtarget.com/searcherp/tip/5-ERP-implementation-best-practices-CIOs-should-know">software implementation</a> so the new technology doesn't go live during the end of a quarter, when employees are already busy.</p> <p>Senior leaders can also share the steps for implementing the change with department managers so that the managers can weigh in on any potential problems and flag any steps that might have been left out. For example, a manager might tell leaders they have forgotten to create communication about the change for contract employees.</p> </section> <section class="section main-article-chapter" data-menu-title="2. Select a leader for the change"> <h2 class="section-title"><i class="icon" data-icon="1"></i>2.&nbsp;&nbsp;&nbsp;&nbsp; Select a leader for the change</h2> <p>The CHRO and the other members of the C-suite should then appoint a senior manager who will serve as a change resource for employees and external vendors.</p> <p>HR can help identify the best person for this role, or the company might decide to hire a change management professional. A change management professional’s duties include creating a roadmap with timelines and deliverables, establishing and monitoring KPIs and directing the process through rollout.</p> </section> <section class="section main-article-chapter" data-menu-title="3. Decide how communication will happen"> <h2 class="section-title"><i class="icon" data-icon="1"></i>3.&nbsp;&nbsp;&nbsp;&nbsp; Decide how communication will happen</h2> <p>CHROs must develop a communication strategy for informing employees -- and possibly clients -- about the change. Ongoing communication is essential, and overcommunicating is better than assuming that stakeholders are aware of everything that is going on.</p> <p>CHROs should not assume that communicating about a change is a one-and-done task. Leaders should communicate about training opportunities, adjustments to workflow and <a href="https://www.techtarget.com/searchhrsoftware/tip/Examples-of-common-HR-compliance-problems">compliance requirements</a> during town halls and through email.</p> <p>CHROs should also consider the geography of their workforce when planning how the company will communicate about the change. For example, if an organization employs some remote workers, leaders should hold a mix of in-person and Zoom meetings.</p> </section> <section class="section main-article-chapter" data-menu-title="4. Plan for resistance"> <h2 class="section-title"><i class="icon" data-icon="1"></i>4.&nbsp;&nbsp;&nbsp;&nbsp; Plan for resistance</h2> <p>Anticipating and deciding how to respond to resistance from employees is the CHRO's responsibility, and it is a crucial step in the process.</p> <p>In addition to being candid about how the change will affect employees and looping them in before final decisions are made, proactive steps include brainstorming potential employee questions and effective responses with other members of the C-suite. Employees are less likely to be resistant when they feel that they have had a say in how the change will be managed and what it will involve.</p> <p><i>Lynda Spiegel is a freelance writer and former global HR executive for financial services, telecommunications and SaaS companies.</i></p> </section> The first step of creating a change management strategy is articulating why the change needs to happen. Learn more about how HR leaders can create an effective strategy. https://cdn.ttgtmedia.com/rms/onlineimages/strategy_g1227074505.jpg https://www.techtarget.com/searchhrsoftware/tip/How-HR-can-create-a-successful-change-management-strategy Fri, 10 Apr 2026 09:57:00 GMT <p>AI in HR software is having a profound effect on the enterprise, but not necessarily in the way you might think. The real challenge is not just what HR AI can do, but what happens once those capabilities get embedded into systems that touch employees directly.</p> <p>Sure, AI is helping automate and reduce time-hungry, laborious and repetitive HR work. It can help with survey analysis, training recommendations, common employee questions, draft creation and other routine tasks that used to eat up more human time. That matters. It can make HR systems more responsive and free HR teams to spend more time on work that still depends on judgment, context, emotional intelligence and actual people skills.</p> <p>But that is only the first layer. The bigger issue is that, once AI gets embedded into the systems employees use every day, this stops being just a technology story and becomes a change management story, too.</p> <p>HR systems are not off to the side of the business. They sit close to benefits, policies, training, performance, self-service and other parts of working life that touch much of the workforce directly. As a result, the effect of AI in HR is broader, more sensitive and more immediate than in many other software rollouts.</p> <blockquote class="main-article-pullquote"> <div class="main-article-pullquote-inner"> <figure> Once AI gets embedded into the systems employees use every day, this stops being just a technology story. </figure> <i class="icon" data-icon="z"></i> </div> </blockquote> <section class="section main-article-chapter" data-menu-title="AI in HR has practical uses, but HR still owns the answers"> <h2 class="section-title"><i class="icon" data-icon="1"></i>AI in HR has practical uses, but HR still owns the answers</h2> <p>The practical case for AI in HR is not hard to see. It can speed up employee listening by summarizing survey responses. It can recommend training based on employee profiles and habits. It can answer routine questions faster. It can surface signals that a worker may need help or that someone is excelling. Used well, AI can improve employee experience while taking some of the drag out of day-to-day HR work.</p> <p>What keeps this from being a simple productivity story is that the buck still stops with the humans. In this case, it stops with HR.</p> <p>The point is simple: HR remains responsible for the answers AI gives. Therefore, AI cannot be treated as the final authority. It needs oversight for accuracy, appropriateness and policy fit, especially when the information involved is personal, employment-related and subject to governance, compliance and confidentiality requirements.</p> <p>That is why the most believable version of AI in HR is not one that tries to replace HR. Instead, it is one that frees HR employees up to do more actual people work while speeding up both mundane, process-heavy tasks and some analytical ones.</p> <p>The value is real. The autonomy is limited. And that limit matters.</p> <blockquote class="main-article-pullquote"> <div class="main-article-pullquote-inner"> <figure> The real question is not just what AI can automate. It is how HR introduces AI into sensitive, employee-facing systems without losing trust, clarity or control. </figure> <i class="icon" data-icon="z"></i> </div> </blockquote> </section> <section class="section main-article-chapter" data-menu-title="Why rollout, training and buy-in matter"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Why rollout, training and buy-in matter</h2> <p>Once <a href="https://www.techtarget.com/searchhrsoftware/tip/4-benefits-of-using-AI-to-improve-employee-experience">AI gets embedded into HR systems</a>, the challenge is no longer just whether the tool works, but how people absorb the change around it.</p> <p>Here, <a href="https://www.techtarget.com/searchcio/definition/change-management">change management</a> stops feeling secondary and starts looking central to the story. It makes a straightforward point that fits this story exactly: Leaders need to <a href="https://www.techtarget.com/searchhrsoftware/tip/4-benefits-of-HR-following-change-management-practices">communicate frequently, explain why the change is happening</a>, involve employees in the process, provide training and test the change before broad release. That is not just good rollout hygiene. In HR, it becomes central to whether the initiative feels trustworthy at all.</p> <p>AI is also starting to <a href="https://www.techtarget.com/searchhrsoftware/tip/Ways-AI-can-help-with-change-management">shape the change management process</a> itself. HR teams can use it to draft training materials, prepare employee communications, support worker questions through chatbots, build project timelines and create presentation templates. The result is a more layered story than a simple software rollout: AI is not just part of the change; it is also becoming part of the machinery used to communicate, support and manage that change.</p> <p>But that does not reduce the need for oversight. If anything, it reinforces it, because AI-generated material still needs human review for accuracy, clarity and appropriateness.</p> <div class="extra-info"> <div class="extra-info-inner"> <p></p> <h3 class="splash-heading">HR AI is not arriving in a vacuum</h3> <p>The push to embed AI in HR software is landing in workplaces that might already be dealing with other pressures. One example is low turnover, which is not always a sign of workforce health. In some organizations, it can signal stale skills, limited internal mobility, weak motivation or too little movement inside the workforce -- concerns that show up in discussions of the <a href="https://www.techtarget.com/searchhrsoftware/tip/Is-employee-retention-too-high-The-risks-of-low-turnover">risks of high employee retention</a>.</p> <p>That broader context helps explain why AI in HR is not just a software functionality story. It is also a rollout story shaped by employee buy-in, communication, training and testing. AI may help HR analyze surveys, recommend training, answer routine questions and surface employees who need support, but HR still has to review outputs, protect sensitive information and stay accountable for the results.</p> <p>Other pressures already shaping HR's AI rollout include employee resistance to change, the need for training and pre-release testing, accountability for AI-generated answers and recommendations, confidentiality and compliance concerns, and the challenge of fitting AI into existing HR and enterprise systems.</p> </div> </div> <p>Buy-in matters more here than in many other enterprise software rollouts because HR software is more inward-facing and more pervasive. Other enterprise systems can deeply affect departments, teams or business units. HR systems affect nearly everyone. They also tend to deal with more personal and sensitive information than many other categories of software.</p> <p>People are not just reacting to a new tool. They are reacting to changes in systems that shape benefits, policy answers, training, performance signals and parts of the employee experience that can feel deeply personal.</p> <p>Training and testing matter for the same reason. They reduce the unknowns. They help employees and HR staff see how the technology will actually be used, how it can change workflows and where the limits are. Training and testing can also reduce resistance. This matters because AI in HR will only become credible if people understand not only what it can do, but what it will not be allowed to do on its own.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/change_management_strategy_in_action-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/change_management_strategy_in_action-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/change_management_strategy_in_action-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/change_management_strategy_in_action-f.png 1280w" alt="Graphic outlining a change management strategy, illustrating how organizations need structured rollout and communication as AI is embedded into HR systems." height="218" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>Embedding AI into HR systems is becoming a change management issue as much as a technology one, especially when those tools affect employee-facing workflows. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="How vendors are making HR AI feel more credible"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How vendors are making HR AI feel more credible</h2> <p>Workday adds the enterprise-software layer that makes this story more grounded.</p> <p>What Workday is really arguing is that AI in HR and finance becomes more believable when it is not floating above the application as generic intelligence, but instead operating inside the software environment, <a href="https://www.techtarget.com/searchhrsoftware/news/366640361/Workdays-new-old-CEO-reveals-Sana-agentic-AI-updates">rooted in trusted HR and finance data</a> inside the system of record.</p> <p>In other words, the strongest enterprise case for HR AI is not just that it can do more, but that it can work inside existing permissions, workflow logic, compliance requirements and the data foundation companies already depend on to run the business.</p> <p>The system-of-record argument matters here because it suggests AI, rather than just generating answers in the abstract, is operating inside an existing business context. That is especially important in HR and finance, where "mostly right" is not good enough. There is far less room for error when the workflows touch compensation, policies, onboarding, performance and other sensitive processes tied to people's working lives.</p> <p>At the same time, Workday's framing leaves a fair question unresolved: How do organizations know the data foundation is really as solid as it needs to be? How do they know the controls, integrations and surrounding processes are strong enough to keep mistakes from leaking into systems where trust is hard to rebuild once lost? That is part of why human oversight still hangs over this whole story, even when vendors make a strong platform-level case for AI credibility.</p> <p>In the end, that unresolved question is what makes this more interesting than a generic "AI in HR" piece. The real question is not just what AI can automate. It is how HR introduces AI into sensitive, employee-facing systems without losing trust, clarity or control.</p> <p>That is what turns HR AI into a change management story.</p> <p><i>James Alan Miller is a veteran technology editor and writer who leads Informa TechTarget's Enterprise Software group. He oversees coverage of ERP &amp; Supply Chain, HR Software, Customer Experience, Communications &amp; Collaboration and End-User Computing topics.</i></p> </section> AI in HR software is changing employee experience and HR workflows, turning automation into a broader story about rollout, trust and change management. https://cdn.ttgtmedia.com/rms/onlineimages/ai_g1182183209.jpg https://www.techtarget.com/searchhrsoftware/feature/HR-AI-is-becoming-a-change-management-story Fri, 10 Apr 2026 09:00:00 GMT <p>Researching the HR software market is a daunting task due to the vast array of options. The key to success is a CHRO understanding their organization's specific needs and how well a <a href="https://www.techtarget.com/searchhrsoftware/tip/15-must-have-HR-software-features-and-system-requirements">particular software option</a> addresses them.</p> <p>The vendors included in this list sell 12 of the top HR software options. Each offers comprehensive HCM suites that are suitable for both midmarket and large organizations that prefer an all-in-one system. The software options mentioned here include modules such as <a href="https://www.techtarget.com/searchhrsoftware/definition/core-HR-core-human-resources">core HR</a> (employee records, payroll and benefits), <a href="https://www.techtarget.com/searchhrsoftware/definition/talent-management">talent management</a> (recruiting, learning, performance, <a href="https://www.techtarget.com/searchhrsoftware/definition/compensation-management">compensation management</a> and succession planning) and other essential HR tools. However, some may rely on third parties for certain functions, such as payroll. All the systems are delivered in the cloud via SaaS, and most have recently been augmented with <a href="https://www.techtarget.com/searchenterpriseai/definition/generative-AI">generative AI</a> digital assistants that can interact with users in natural language and perform some tasks automatically.</p> <p>The tools were chosen based on the author's personal experience with various HR platforms, as well as vendor websites and sources such as Capterra, G2, People Managing People and <i>Forbes</i>. The products are listed alphabetically.</p> <section class="section main-article-chapter" data-menu-title="ADP Workforce Now"> <h2 class="section-title"><i class="icon" data-icon="1"></i>ADP Workforce Now</h2> <p>ADP was founded in 1949 and is best known as a payroll provider, but it also sells a comprehensive <a href="https://www.techtarget.com/searchhrsoftware/definition/HRIS">HR information system</a> that offers a full suite of functions. ADP caters to all business sizes, from the small all the way to multinational conglomerates. It also offers a service that enables you to outsource payroll processing to ADP payroll specialists.</p> <h3>Pros</h3> <ul class="default-list"> <li>For companies with offices in the United States and Canada, ADP offers a cross-border system that enables you to store all employee records in one database. The data is easily accessible for reporting, viewing and managing workflow approvals.</li> <li>It has decades of experience in the payroll field.</li> <li>It has done a good job of building software that is easy to use for employees, managers <a href="https://www.techtarget.com/searchhrsoftware/tip/Top-9-tech-skills-HR-professionals-need-for-success">and HR</a>.</li> <li>There is a marketplace of certified partner applications that you can integrate with ADP Workforce Now to supplement its functions.</li> <li>A drag-and-drop reporting tool simplifies the process of creating new reports.</li> </ul> <h3>Cons</h3> <ul class="default-list"> <li>When first looking at the ADP website, you might find it hard to identify which product is right for your company.</li> <li>The software is not as feature-rich as products from some of the other vendors on the list.</li> <li>ADP still operates based on country, so customer touchpoints, such as sales, professional services and technical support, are not integrated.</li> </ul> <h3>Why CHROs should consider ADP Workforce Now</h3> <ul class="default-list"> <li>ADP has invested heavily in Workforce Now over the past few years.</li> <li>It is a stable company with a proven track record.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/hrsoftware-hcm_components.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/hrsoftware-hcm_components_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/hrsoftware-hcm_components_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/hrsoftware-hcm_components.jpg 1280w" alt="HCM software components" height="385" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>Most HCM suites have these essential tools for managing the HR process. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="BambooHR"> <h2 class="section-title"><i class="icon" data-icon="1"></i>BambooHR</h2> <p>BambooHR is a popular HR system for small to midsize companies. The vendor continues to add new functionality, including features to support employees from hire to retire. BambooHR is available for use in multiple countries, but some features are only available in the U.S., such as payroll and benefits. The main selling point of BambooHR is its easy-to-use interface, which recently gained an AI chatbot that answers employees' questions.</p> <h3>Pros</h3> <ul class="default-list"> <li>The UI is appealing and requires little to no training for employees.</li> <li>System administrators find the application easy to manage.</li> <li>Technical support is responsive and helpful.</li> <li>Sign-up is easy, and the contract is month to month. So, companies don't have to make long-term commitments.</li> </ul> <h3>Cons</h3> <ul class="default-list"> <li>The product's simplicity might prevent you from doing exactly what you want.</li> <li>Payroll and benefits are only available for American employees.</li> <li>Users typically can't edit BambooHR's standard reports.</li> <li>Some features that are helpful for the HR team are only available for system administrators.</li> </ul> <h3>Why CHROs should consider BambooHR</h3> <ul class="default-list"> <li>When ease of use is a key consideration, such as for smaller companies, it is especially good.</li> <li>The software offers the features most commonly required by employees, managers and HR.</li> <li>Pricing is lower than competitors' offerings.</li> <li>Companies can easily end their contracts if needed.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Ceridian Dayforce"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Ceridian Dayforce</h2> <p>The Dayforce suite competes directly with ADP Workforce Now, especially in payroll and <a href="https://www.techtarget.com/searchhrsoftware/tip/9-features-to-look-for-in-benefits-administration-software">benefits administration</a>. Ceridian has offered a payroll system that supports multiple countries for years, continues to seek input from customers on how to improve the platform and has invested heavily in adding support for different countries.</p> <h3>Pros</h3> <ul class="default-list"> <li>Dayforce Wallet eliminates the requirement to be paid on a regular schedule. With Wallet, employees can receive their pay a little at a time throughout the pay cycle, based on their organization's rules.</li> <li>Ceridian has perfected the process of refreshing the staging and test environment.</li> <li>The software is not overly complex to administer after go-live.</li> <li><a href="https://www.techtarget.com/searchhrsoftware/tip/HR-and-payroll-benefits-of-an-integrated-system">Payroll integrates well</a> with Dayforce's time and attendance functions and simplifies making last-minute adjustments.</li> <li>Dayforce Hub provides employees with a personalized landing page, where HR can share important information and links with employees.</li> </ul> <h3>Cons</h3> <ul class="default-list"> <li>The UI is not as appealing as those of other vendors.</li> <li>The security model can be confusing, which is caused in part by Ceridian using common HR language, such as <i>department</i> or <i>division</i>, in a nonstandard manner. On the other hand, it's easy to make minor adjustments to security roles.</li> <li>The platform doesn't offer the same depth of functionality as some others listed here.</li> </ul> <h3>Why CHROs should consider Ceridian Dayforce</h3> <ul class="default-list"> <li>It has an integrated platform.</li> <li>The payroll module supports last-minute changes with ease.</li> <li>Refreshing the test and staging area is easy.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Gusto"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Gusto</h2> <p>Gusto is a full-service HR system for SMBs that includes payroll and benefits support and is designed for American employees. The company was founded in 2011.</p> <h3>Pros</h3> <ul class="default-list"> <li>The software is designed for small to midsize companies.</li> <li>It covers the entire employee lifecycle.</li> <li>It includes features for managing contractors.</li> <li>Most features are available without additional fees.</li> <li>Gusto has won multiple awards for its product.</li> </ul> <h3>Cons</h3> <ul class="default-list"> <li>The software currently only supports American employees.</li> <li>Gusto does not offer the depth of features and services that larger vendors offer.</li> <li>Live 24/7 support is not available.</li> </ul> <h3>Why CHROs should consider Gusto</h3> <ul class="default-list"> <li>Gusto is particularly well suited for SMBs looking for easy-to-use software.</li> <li>The company offers various integrations, including discounts for some vendors.</li> <li>The software is end to end, which eliminates the need for users to go from one system to another.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="HiBob"> <h2 class="section-title"><i class="icon" data-icon="1"></i>HiBob</h2> <p>HiBob, also known simply as Bob, is end-to-end global HR software. The company was founded in 2015, and the software is known for its engaging UI.</p> <p>HiBob does not offer payroll or benefits software, but does offer prebuilt integration with leading global payroll providers. In addition to HR functionality, the system also <a href="https://www.techtarget.com/searchhrsoftware/tip/Top-employee-survey-vendors-for-CHROs-to-research">includes employee surveys</a> and a tool for employees to raise concerns anonymously. An <a href="https://www.techtarget.com/searchhrsoftware/definition/applicant-tracking-system-ATS">applicant tracking system</a> and learning and development modules were added in 2024.</p> <h3>Pros</h3> <ul class="default-list"> <li>The software supports employees from different countries.</li> <li>It includes a sandbox or test environment so you can test changes without affecting the production system.</li> <li>It was built from the ground up, resulting in a consistent look and feel.</li> <li>It comes with prebuilt integrations with many complementary applications.</li> </ul> <h3>Cons</h3> <ul class="default-list"> <li>The software does not include payroll or benefits modules.</li> <li>Its relatively new status in the global HR market might result in less functionality than some of the more established vendors.</li> <li>HiBob only offers a support portal or email support.</li> </ul> <h3>Why CHROs should consider HiBob</h3> <ul class="default-list"> <li>The software is designed for global companies, and users can customize features like holiday calendars, currencies and policies.</li> <li>The company focuses on its core business and integrates with other vendors to round out its functionality, such as payroll.</li> <li>Other features, such as surveys, are available if needed.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Oracle Fusion Cloud HCM"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Oracle Fusion Cloud HCM</h2> <p>Oracle built Fusion Cloud HCM internally rather than through acquisitions, which enables a consistent look and feel for both employees and HR administrators. Oracle is a dominant player in the business software industry, with significant financial resources to continue investing in HR software. Oracle offers a full suite of functions in a highly configurable system.</p> <h3>Pros</h3> <ul class="default-list"> <li>You can configure the software to support complex business rules.</li> <li>Many training options are available for free to customers.</li> <li>The software is built with a responsive web design, eliminating the need to install apps on mobile devices.</li> <li>Oracle offers additional cloud products you can use to manage all aspects of your business, such as HR help desk software and ERP that are well integrated with the HCM platform.</li> <li><a href="https://www.techtarget.com/searchhrsoftware/feature/Advantages-and-disadvantages-of-using-AI-in-HR">AI features can help end users</a> quickly accomplish tasks, such as writing performance feedback or creating a survey.</li> </ul> <h3>Cons</h3> <ul class="default-list"> <li>Reporting can be complex, and knowing <a href="https://www.techtarget.com/searchdatamanagement/definition/SQL">SQL</a> is recommended for advanced reporting.</li> <li>Configuration changes can be complicated and might present a steep learning curve for new system administrators.</li> <li>The file format for data uploads isn't intuitive and adds complexity when migrating data.</li> <li>Department names must be unique, which can present a challenge when you have multiple operating groups with similar departments, such as finance.</li> </ul> <h3>Why CHROs should consider Oracle Fusion Cloud HCM</h3> <ul class="default-list"> <li>Oracle has the funds to continue investing in the HCM suite and related HR tools.</li> <li>The system is highly configurable.</li> <li>A full suite of integrated modules is available to support other business needs.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/how_hr_vendors_will_use_generative_ai-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/how_hr_vendors_will_use_generative_ai-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/how_hr_vendors_will_use_generative_ai-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/how_hr_vendors_will_use_generative_ai-f.png 1280w" alt="Graphic showing ways HR vendors are using generative AI in their products." height="342" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>HR software vendors have been adding added generative AI tools at a rapid pace for numerous HR functions since the widely publicized arrival of ChatGPT in 2022. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Paycom"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Paycom</h2> <p>Paycom was founded in 1998 as a payroll service provider and began adding HR functionality in 2001.</p> <p>The company continues to add features that simplify the payroll process and give employees more control over when they are paid. Paycom supports a global workforce, but not all its features are available globally.</p> <h3>Pros</h3> <ul class="default-list"> <li>The software focuses on reducing payroll processing time.</li> <li>It includes the most common HR features alongside payroll.</li> <li>The company's Beti product enables employees in North America to do their own payroll, though approval is required.</li> <li>Employees can choose when they are paid instead of waiting for payday.</li> </ul> <h3>Cons</h3> <ul class="default-list"> <li>Not all features are supported globally.</li> <li>Some reviewers said the reporting feature is difficult to use.</li> <li>The company website is not always clear about which features are available outside the U.S.</li> </ul> <h3>Why CHROs should consider Paycom</h3> <ul class="default-list"> <li>The vendor offers innovative payroll options, such as enabling employees to do their own payroll processing.</li> <li>Paycom includes many common HR features, such as core HR functions, benefits and <a href="https://www.techtarget.com/searchhrsoftware/Ultimate-guide-to-recruitment-and-talent-acquisition">talent acquisition</a>.</li> <li>The vendor is well established in the payroll and HR industry.</li> <li>Paycom was built internally rather than growing through acquisitions.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Paycor"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Paycor</h2> <p>Paycor offers a suite of modules to <a href="https://www.techtarget.com/searchhrsoftware/definition/HR-automation">automate</a> the entire HR process, including a pulse survey tool to keep in touch with employees and build employee engagement. While Paycor supports large enterprises -- often defined as companies with 1,000 or more employees -- most of its installed base is at smaller organizations. The software is tailored to work in eight verticals, such as healthcare, manufacturing and nonprofits. Paycor focuses on U.S. organizations and offers full payroll and government reporting features.</p> <h3>Pros</h3> <ul class="default-list"> <li>The product includes a full suite of modules to support the HR team, payroll and employees.</li> <li>It was built entirely by Paycor and, therefore, has a consolidated database.</li> <li>Simple configuration options make it easier to maintain the system as changes are required.</li> <li>Offerings are tailored to customer size and industry.</li> <li>Reporting pulls data from a single database and enables you to quickly drill into the data behind charts and graphs.</li> </ul> <h3>Cons</h3> <ul class="default-list"> <li>The software only targets customers with employees in the U.S.</li> <li>It has fewer configuration options than some other products on the list.</li> <li>While Paycor offers many modules and features, its offering is not as comprehensive as the larger vendors'.</li> </ul> <h3>Why CHROs should consider Paycor</h3> <ul class="default-list"> <li>It's an all-in-one system that could meet your payroll and HR needs.</li> <li>Midsize businesses with less complex requirements can avoid the challenges of administering one of the larger systems.</li> <li>You can integrate third-party software to fill functional gaps if needed.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Paylocity"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Paylocity</h2> <p>Paylocity was founded in 1997 as a payroll company and later expanded its product to include workforce management and HR functions. The software includes features to support a global workforce, but payroll outside the U.S. is provided by a third party.</p> <p>From an HR perspective, the software includes features to support the full lifecycle of an employee, including compensation management, learning and performance management.</p> <h3>Pros</h3> <ul class="default-list"> <li>The vendor has a long history in payroll and HR.</li> <li>Employees can choose when they are paid instead of having to wait for the regular pay date.</li> <li>The software covers every stage of an employee's time with the company.</li> <li>It includes <a href="https://www.techtarget.com/searchhrsoftware/definition/employee-engagement">employee engagement</a> tools, including rewards and recognition.</li> </ul> <h3>Cons</h3> <ul class="default-list"> <li>While the software includes features to support a global workforce, the Paylocity website is geared toward American companies, and some features are specific to the U.S.</li> <li>Payroll for regions outside of the U.S. is done by a third party.</li> <li>Standard reports can include merged cells, which can be inconvenient when sorting data in the spreadsheet or performing other actions.</li> </ul> <h3>Why CHROs should consider Paylocity</h3> <ul class="default-list"> <li>The software includes many HR and related features to support employees, managers and HR staff.</li> <li>The software also includes ways to help build employee engagement.</li> <li>Paylocity has a long history in the industry and continues to invest in its platform.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="SAP SuccessFactors Human Experience Management Suite"> <h2 class="section-title"><i class="icon" data-icon="1"></i>SAP SuccessFactors Human Experience Management Suite</h2> <p><a href="https://www.techtarget.com/searchsap/definition/SAP-SuccessFactors">SAP SuccessFactors</a> was a major player in the early days of SaaS HCM. Following its acquisition by SAP in 2012, SuccessFactors benefited from renewed investment because it became SAP's main HR offering, replacing an on-premises system. SAP SuccessFactors Human Experience Management (HXM) Suite is a highly configurable, comprehensive suite. Users see a consistent look and feel, which is important since many of SuccessFactors' modules were acquired over time.</p> <h3>Pros</h3> <ul class="default-list"> <li>The comprehensive system covers everything companies need from an HR perspective.</li> <li>It offers advanced reporting.</li> <li>It has an appealing look and feel.</li> <li>It supports country-specific languages and payroll rules for many countries around the world.</li> <li>SAP is committed to continued investment and innovation to improve the software.</li> </ul> <h3>Cons</h3> <ul class="default-list"> <li>Many modules were acquired and only partially integrated. While most of this is hidden from users, the system administrator has to learn how to use different systems when making configuration and permission changes.</li> <li>As with any highly configurable HR application, it can be more challenging to make configuration changes.</li> <li>When you're using one of the acquired modules, the data is stored in multiple databases, which makes reporting more challenging.</li> </ul> <h3>Why CHROs should consider SAP SuccessFactors HXM Suite</h3> <ul class="default-list"> <li>The product is offered by one of the biggest software vendors in the world, which has the resources to continue investing in the software.</li> <li>The software is highly configurable, which makes it possible to meet complex business needs.</li> <li>There are features that cater to the needs of global companies.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="UKG Pro"> <h2 class="section-title"><i class="icon" data-icon="1"></i>UKG Pro</h2> <p>UKG was formed by the 2020 merger of Ultimate Software and Kronos. While there was some functional overlap, the addition of Kronos' time and attendance features to Ultimate's HR software has provided the combined company with a solid feature set. However, because of the merger, there are two databases: one to store time and attendance data and one for all the other employee data. UKG continues to be one of the top-performing HR software vendors, and as it continues to integrate the two product lines, the offering should only improve.</p> <h3>Pros</h3> <ul class="default-list"> <li>The combined company offers a comprehensive HR system with advanced timesheet functions from the Kronos side of the merger.</li> <li>Transferring time and attendance data from one system to the other has been simplified.</li> <li>The interface is user-friendly.</li> <li>The software can be configured to meet unique business needs.</li> </ul> <h3>Cons</h3> <ul class="default-list"> <li>Data is split between two databases.</li> <li>Configuration changes have to be made in two systems.</li> <li>While the software supports many languages, it does not have the same geographic breadth as products from some of the other large vendors.</li> </ul> <h3>Why CHROs should consider UKG Pro</h3> <ul class="default-list"> <li>It includes a full suite of HR functions.</li> <li>It offers an advanced time-tracking application.</li> <li>It has a modern UI.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Workday Human Capital Management"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Workday Human Capital Management</h2> <p><a href="https://www.techtarget.com/searchhrsoftware/definition/Workday">Workday</a> was founded in 2005 with the goal of building a cloud-based HR and finance system. One of the founders previously started PeopleSoft in 1987, which went on to become one of the top-rated on-premises HR systems. Workday's HCM system serves a global customer base with feature-rich applications. Like Oracle and SAP, Workday's HR software provides an end-to-end system for companies looking to automate the whole employee lifecycle, including payroll.</p> <h3>Pros</h3> <ul class="default-list"> <li>It includes a full suite of HR functions.</li> <li>Flexible configuration options enable companies to meet global needs.</li> <li>Reporting and analytics features are top-rated.</li> <li>Workday built its system from the ground up, providing users with a consistent look and feel, a single database and one security model.</li> <li>Other departments, such as finance, can also use Workday.</li> </ul> <h3>Cons</h3> <ul class="default-list"> <li>The learning management system requires continued investment to compete on an equal footing with competitors.</li> <li>Workday continues to build up its presence in the Asia-Pacific region, which had been lacking, both in terms of internationalizing the software itself and building a network of certified partners.</li> <li>The UI feels out of date compared to some competitors.</li> </ul> <h3>Why CHROs should consider Workday Human Capital Management</h3> <ul class="default-list"> <li>It offers leadership with a long history of success in HR software.</li> <li>A large installed base ensures the company has the funds to continue investing in new, innovative software.</li> <li>The system was built internally rather than through acquisitions.</li> <li>The company has an impressive customer list.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="HR software buying tips"> <h2 class="section-title"><i class="icon" data-icon="1"></i>HR software buying tips</h2> <p>HR software selection and implementation is a daunting process that involves a substantial commitment of resources. Early in the project, CHROs should consider the following points to help validate their company's needs, build a business case and zero in on the right vendors:</p> <ul class="default-list"> <li>Create a requirements document, and ask for input from stakeholders, such as leaders in finance, payroll and IT.</li> <li>Understand your budget for annual software licenses and the implementation itself. Also, consider how much it will cost to implement features in the future that were not included in the initial implementation.</li> <li><a href="https://www.techtarget.com/searchhrsoftware/tip/The-HR-software-buying-team-Roles-responsibilities-tips">Form a project team</a> that includes members from key stakeholder groups, such as HR, IT, finance and legal.</li> <li>Before scheduling a demo, make sure the vendors know what your needs are and what is most important to your organization.</li> <li>Make sure all members of the project team attend demos and take notes.</li> <li>Keep in mind that the more expensive applications often include higher implementation and consulting fees.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Features to look for when buying HR software"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Features to look for when buying HR software</h2> <p>When evaluating vendors, it's important to remember that each module in a suite may not be as feature-rich as the other modules. For example, one vendor might emphasize the recruiting function, while another focuses on performance management. Some vendors may have acquired other vendors to <a href="https://www.techtarget.com/searchhrsoftware/tip/15-must-have-HR-software-features-and-system-requirements">enhance their own HR software offerings</a>, which can lead to differences in the user's experience from one module to the next.</p> <p>While each company is unique, when it comes to <a href="https://www.techtarget.com/searchhrsoftware/How-to-choose-an-HR-software-system">buying HR software</a>, CHROs should consider the following points:</p> <ul class="default-list"> <li>Determine whether the application supports each region where you have employees. That means, for example, making sure the UI is translated into local languages and payroll adheres to local tax laws.</li> <li>Reporting and dashboards continue to gain in importance. Take a close look at the product's standard reports and dashboards, and try to understand how easy or difficult it will be to build your own.</li> <li>You might need integrations with other applications that rely on your current HR software. This could be payroll, finance or other systems managed by IT.</li> <li>Mobile features are important. Determine if an app is required to access the HR software remotely and whether it supports the types of devices used in your organization.</li> <li>Consider whether the software has enough breadth to support your organization as it grows.</li> <li>Determine if the vendor has integrated AI features into the software, and ask about its <a target="_blank" href="https://www.gartner.com/en/human-resources/topics/artificial-intelligence-in-hr" rel="noopener">plans for the future</a>.</li> <li>Find out if the software was built by one company, if it was created through acquisitions or if third-party partners are included in the software. Often, a product built by one company has one database and a consistent look and feel, while software built through acquisitions can include more than one database, have an inconsistent UI and require system administrators to make changes in multiple places. Third-party software might require an additional contract and multiple technical support teams, and it could bring integration challenges.</li> </ul> <p><strong>Editor's note:</strong> <em>This article was updated in April 2026.</em></p> <p><i>Eric St-Jean is an independent consultant with a particular focus on HR technology, project management and Microsoft Excel training and automation. He writes about numerous business and technology areas.</i></p> </section> To help CHROs whittle down their HR software shortlist, learn the pros and cons of some top vendors and tools, and get buying tips to ensure the purchase is a success. https://cdn.ttgtmedia.com/rms/onlineimages/collab_a78129054.jpg https://www.techtarget.com/searchhrsoftware/tip/The-7-best-HR-software-and-tool-options-to-consider Thu, 09 Apr 2026 11:00:00 GMT <p>Compensation management is the discipline and process for determining employees' appropriate pay, incentives, rewards, bonuses and benefits.</p> <p>Proper and transparent compensation management plays a vital role in helping an organization attract and retain talent, <span xml:lang="EN-US" data-contrast="auto">so CHROs must ensure their organizatio</span><span xml:lang="EN-US" data-contrast="auto">n is</span><span xml:lang="EN-US" data-contrast="auto">&nbsp;carrying out compensation management in the proper way to ensure&nbsp;</span><span xml:lang="EN-US" data-contrast="auto">a good employee experience</span>.</p> <section class="section main-article-chapter" data-menu-title="Objectives of compensation management"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Objectives of compensation management</h2> <p>A critical element in <a href="https://www.techtarget.com/searchhrsoftware/definition/talent-management">talent management</a> and of <a href="https://www.techtarget.com/searchhrsoftware/definition/employee-retention">employee retention</a> strategies, a compensation management program uses both monetary and nonmonetary benefits to attract candidates, spur employee performance, boost <a href="https://www.techtarget.com/searchhrsoftware/definition/employee-engagement">employee engagement</a> and reduce turnover.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/elements_of_compensation_management-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/elements_of_compensation_management-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/elements_of_compensation_management-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/elements_of_compensation_management-f.png 1280w" alt="Elements of compensation management graphic." height="266" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Compensation management applications may be fairly complex, with features that address several different human resources processes. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>The human resources (HR) professionals on a CHRO's team typically develop and execute compensation management strategies. They're responsible for ensuring that salaries and bonuses remain competitive vis-à-vis industry baselines and market demands, and that benefits keep up with the needs of the workforce. At the same time, compensation must align with the organization's objectives and budget. A proper strategy can help <a href="https://www.techtarget.com/searchhrsoftware/definition/human-resources-HR-generalist">HR professionals</a> and their teams achieve those objectives.</p> <p>HR personnel in compensation management roles gather and analyze internal and external salary figures, demographic and economic statistics, and other relevant information to determine the "right" compensation for each employee. They also try to understand the complexities of <a href="https://www.techtarget.com/searchhrsoftware/definition/benefits-administration">benefits administration</a> and cost of living calculations, and consider factors like an employee's position, role and responsibilities, skills and experience while calculating compensation. Ultimately, the aim is to ensure that everyone gets paid a fair salary in exchange for contributing to the company's business goals.</p> </section> <section class="section main-article-chapter" data-menu-title="Breaking down the main types of compensation"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Breaking down the main types of compensation</h2> <p>In most industries and companies, an employee's total compensation can generally be divided into two categories: direct compensation and indirect compensation.</p> <p><b>Direct compensation</b><b>. </b>Direct compensation refers to monetary earnings tied to the value of the work the employee brings to the organization. It is usually the main or major part of an employee's overall earnings.</p> <p>There are four main types of direct compensation:</p> <ul class="default-list"> <li><b>Salary. </b>Full-time employees typically get an annual salary that's paid weekly, biweekly or monthly. These employees tend to be skilled workers or managers. They're usually people that an organization has an interest in investing in a long-term relationship. Most professional and specialist roles are salaried positions, such as teachers and healthcare professionals. When determining an employee's salary, HR staff usually consider the person's skills and experience and the average pay for the position in the industry. For low-salaried individuals, the local minimum wage (if applicable) is also considered.</li> <li><b>Hourly. </b>Part-time and <a href="https://www.hrdive.com/news/employers-use-of-temporary-contract-workers-continues-to-increase/524534/">contract workers</a> are often paid on an hourly basis. Hourly wages are also associated with temporary and <a href="https://www.techtarget.com/whatis/definition/gig-economy">gig jobs</a>. These employees are often eligible for overtime pay when they work beyond a contracted number of hours. They can also be subject to minimum wage requirements. Workers in construction, retail, food and hospitality are often compensated hourly. Freelance workers in the tech industry or in marketing positions might also be paid hourly.</li> <li><b>Bonuses. </b>A bonus can be given to employees for a particular reason, such as good work on a specific project. They can also be given out universally across an organization, often just before an upcoming holiday period or when the company has achieved good end-of-the-year results. Bonuses are sometimes paid based on the number of years a person is employed at the organization or as merit pay for meeting a specific goal or target. Bonuses are usually not specific to any type of role, though they are often part of compensation packages for upper-level managers and executives, including those in the <a href="https://www.techtarget.com/searchcio/definition/C-level">C-suite</a>.</li> <li><b>Commission. </b>People employed in sales roles are often paid on a straight commission basis or a salary plus commission. Commissions are usually tied to an employee meeting (or exceeding) a certain target or it might be a percentage of revenue or profit that the employee was instrumental in generating.</li> </ul> <p><b>Indirect compensation</b><b>. </b>Indirect compensation refers to ancillary compensation that has financial value but is a smaller part of an employee's total compensation. This type of compensation is often divided into monetary or nonmonetary categories:</p> <ul class="default-list"> <li><b>Monetary. </b>Monetary forms of indirect compensation include benefits such as health, dental, vision, life and disability insurance. Employee stock options (ESOPs), employee discounts, a savings plan like <a href="https://www.techtarget.com/whatis/definition/401k">401k</a> (U.S.) and retirement benefit plans like pensions are also examples of indirect monetary compensation.</li> <li><b>Nonmonetary.</b> This type of indirect compensation includes paid time off, sick leave, parental leave, bereavement leave, childcare assistance, training, <a href="https://www.techtarget.com/whatis/definition/upskilling">upskilling</a>, mentoring and company-provided cars, phones, laptops and meals.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/employee_retention_action_yields_benefits-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/employee_retention_action_yields_benefits-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/employee_retention_action_yields_benefits-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/employee_retention_action_yields_benefits-f.png 1280w" alt="Employee retention: Action yields benefits graphic." height="301" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>Compensation management systems can help standardize and track employee retention procedures, which may yield substantial benefits for an organization. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Why is compensation management important?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Why is compensation management important?</h2> <p>CHROs should prioritize compensation management for several reasons:</p> <ul class="default-list"> <li>Salaries are typically a business's biggest expense. Executives need a solid compensation management strategy plus good data to <a href="https://www.techtarget.com/searcherp/definition/budgeting-planning-and-forecasting-BPF">prepare and monitor budgets</a>, and make consistent and fair decisions that correctly compensate employees for their contributions to the company.</li> <li>Compensation management also enables companies to save money. HR personnel can perform market research to understand average salary trends for various roles. Comparing this information with the company's salary structure can highlight whether the company is overpaying or underpaying for certain roles.</li> <li>Compensation management and talent management go hand-in-hand. By considering various factors such as employee skills, experience, cost of living, market trends, etc., HR teams can identify opportunities for awarding bonuses and other motivational activities. This can improve the <a href="https://www.techtarget.com/whatis/definition/reinforcement-theory">motivation and satisfaction</a> of existing employees, and also attract new talent to the company.</li> <li>Employers face new <a href="https://www.techtarget.com/searchhrsoftware/news/252505619/New-pay-equity-laws-want-proof-of-fair-pay">pay equity laws</a> that require them to report employee wages along with data on gender, race, ethnicity and occupational role. U.S. states that have adopted these laws use this data to identify wage patterns that might suggest discrimination. On the federal level, the U.S. Securities and Exchange Commission (<a href="https://www.techtarget.com/searchsecurity/definition/Securities-and-Exchange-Commission-SEC">SEC</a>) also requires companies to report human capital metrics, including pay equity. A compensation management program can aid in ensuring compliance with these laws and requirements.</li> <li>Employers are giving pay equity issues more attention as part of their diversity, equity and inclusion (<a href="https://www.techtarget.com/searchhrsoftware/definition/diversity-equity-and-inclusion-DEI">DEI</a>) efforts. With pay equity, i.e., comparable compensation for employees in similar roles, regardless of their gender, race or other characteristics, organizations can attract the right talent while ensuring that the business remains competitive.</li> <li>Employees who move from high-wage regions might see their pay reduced to local prevailing wages. Ensuring competitive compensation packages in an era of flexible and hybrid work is becoming more complicated. Compensation management can help ease these complexities while minimizing the potential for pay inequity and employee dissatisfaction.</li> </ul> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/jW_5GGj0zUM?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="Benefits of compensation management"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Benefits of compensation management</h2> <p>Compensation management will bring various benefits to an organization when done effectively. Some examples of benefits include the following:</p> <figure class="main-article-image half-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/5_benefits_of_compensation_management-h.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/5_benefits_of_compensation_management-h_half_column_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/5_benefits_of_compensation_management-h_half_column_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/5_benefits_of_compensation_management-h.png 1280w" alt="5 benefits of compensation management graphic." height="362" width="279"> <figcaption> <i class="icon pictures" data-icon="z"></i>An effective compensation management system will produce positive results for both employees and the organization as a whole. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <ul class="default-list"> <li><b>Competitive monetary compensation.</b> Ensuring salaries are competitive is the main benefit of compensation management. Up-to-date market data gives hiring managers critical information they need when making offers to top talent. The same applies to raises and bonuses for employees, who typically find ways to learn about their peers' salaries and benefits. An effective compensation management system is alert to changes in the market, which can help with attracting and retaining the best talent.</li> <li><b>Employee morale. </b>Compensation management tools can help motivate employees, boost retention and reduce turnover. Those impacts, in turn, save money on <a href="https://www.techtarget.com/whatis/definition/OPEX-operational-expenditure">operational expenditures</a>, such as recruitment and training costs.</li> <li><b>Productivity and performance.</b> More broadly, the right mix of compensation can improve employee performance, productivity and creativity.</li> <li><b>Increasing profit. </b>The improvements listed above can often boost the organization's revenue and profitability.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Challenges of compensation management"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Challenges of compensation management</h2> <p>Despite the benefits of effective compensation management, there are also obstacles involved with these efforts, including the following:</p> <ul class="default-list"> <li><b>Budget constraints.</b> Compensation packages can quickly eat up a company's budget, impeding business leaders from offering everything they want to employees.</li> <li><b>Knowing what to include in plans. </b>Knowing what to include in compensation plans can be a challenge. In some cases, industry-wide data is available to <a href="https://www.techtarget.com/searchcio/definition/benchmark">benchmark</a> data. However, this information can be hard to obtain, and business leaders might have to use their own best judgment.</li> <li><b>Communication. </b>Organizations must explain all plans and packages to employees and other stakeholders, especially new hires. This can take time and effort.</li> <li><b>Comprehensiveness. </b>Organizations must ensure their compensation policies are fair to all employees and accommodate special needs. This, too, takes more time and effort.</li> <li><b>Continuous monitoring of success.</b> Continuously assessing how compensation plans are faring over time using various metrics can be time-consuming and arduous. To simplify the effort, this task is often outsourced to third-party service providers.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="How to implement a compensation management strategy"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to implement a compensation management strategy</h2> <p>Compensation philosophies and compensation management strategies vary from company to company, but the steps to implement them generally apply to organizations across the board. They include:</p> <ul class="default-list"> <li><b>Policies with vision.</b> CHROs should work with other leaders to craft policies that tie compensation to the scope and vision of the various roles they're hiring for. Additionally, they should clearly communicate the role <a href="https://www.techtarget.com/searchcio/definition/project-scope">scope</a> and vision to every new hire to provide clarity about expectations and compensation. Leaders should also be transparent about the organization's compensation policies, structure, methodology and calculations.</li> <li><b>Broad input.</b> Determining ways to improve existing compensation plans, as well as looking to other sources and organizations for insights, is a good way to shape (or reshape) a comprehensive and fair compensation plan.</li> <li><b>Compliance.</b> <a href="https://www.techtarget.com/searchdatamanagement/definition/compliance">Compliance</a> with local, state and federal laws concerning compensation and benefits must be considered when fleshing out the details of the plan. This will prevent non-compliance issues later on, which may result in fines or legal action against the company.</li> <li><b>Finalizing the plan.</b> Once all these factors are carefully considered, business leaders must finalize plan details.</li> <li><b>Communication.</b> The full plan must be explained to all employees and stakeholders. If possible, stakeholders' feedback should be collected and incorporated to improve the plan before it goes into effect.</li> <li><b>Reassessing and improving.</b> Once put into effect, the compensation plan should be reviewed to see how well it works for employees and to improve it, if necessary, to facilitate consistent pay equity and legal compliance. Regular pay equity <a href="https://www.techtarget.com/searchcio/definition/compliance-audit">audits</a> are a good way to assess whether compensation is fair, equitable and competitive, and if certain compensation packages need to be revised.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Compensation management software: benefits"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Compensation management software: benefits</h2> <p>Compensation management software is a standard component in human capital management (<a href="https://www.techtarget.com/searchhrsoftware/definition/human-capital-management-HCM">HCM</a>) platforms and talent management suites. Its primary purpose is to give executives, hiring managers, recruiters and HR personnel information about the budget for employee salaries and industrywide compensation rates for similar positions. The tools also store updated data about employee salaries and tenures.</p> <p>This type of software also acts as a centralized system for managing every type of compensation relevant to the organization. This includes monetary compensation, such as bonuses and performance incentives, as well as nonmonetary compensation, such as extra time off, <a href="https://www.techtarget.com/searchhrsoftware/feature/8-workforce-management-tools-to-support-flexible-work-hours">flexible work hours</a>, public recognition and wellness programs.</p> <p>Compensation management software also provides tools for calculating and communicating the total rewards provided to each employee. This is a personalized statement of the value of each compensation package, including employee benefits like health insurance and retirement accounts. Features for equity allocation might also be included.</p> <p>Like other HR applications, compensation management software increasingly relies on <a href="https://www.techtarget.com/searchenterpriseai/definition/machine-learning-ML">machine learning</a> to spot disparities in data and ensure salary rates are competitive with the overall industry or market. Platform vendors have also been adding <a href="https://www.techtarget.com/searchdatamanagement/definition/data-analytics">data analytics</a> features and providing access to cloud-based <a href="https://www.techtarget.com/searchdatabackup/definition/data-anonymization">anonymized data</a> to make it easier for employers to benchmark pay rates against other firms in their industry.</p> <p>Compensation managers can use the software to gather salary data by industry, company size, job role and geography. Other sources of wage information include government data, information from publicly available sites that collect user-reported salary data and data purchased from third-party firms that conduct ongoing salary and benefit surveys.</p> <p>Another trend affecting compensation management software is the adoption of on-demand pay, also known as <a href="https://www.paymentsdive.com/news/earned-wage-access-opinion-worker-pay-alternative/757794/">earned-wage access</a>. It gives employees the option to receive pay for hours as they're worked instead of waiting for a check that's regularly scheduled every week or two. Numerous niche vendors specialize in developing compensation management software for managing earned-wage access that's delivered using the software-as-a-service (<a href="https://www.techtarget.com/searchcloudcomputing/definition/Software-as-a-Service">SaaS</a>) model.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/hrsoftware-employee_cycle.png"> <img data-src="https://www.techtarget.com/rms/onlineImages/hrsoftware-employee_cycle_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/hrsoftware-employee_cycle_mobile.png 960w,https://www.techtarget.com/rms/onlineImages/hrsoftware-employee_cycle.png 1280w" alt="Stages of employee lifecycle graphic." height="331" width="520"> <figcaption> <i class="icon pictures" data-icon="z"></i>Solid compensation management will complement the five main processes in the typical employee lifecycle scenario. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="What to look for in compensation management software"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What to look for in compensation management software</h2> <p>While compensation software <a href="https://www.techtarget.com/searchitoperations/definition/platform">platforms</a> are meant to add value and efficiency to HR departments, organizations must examine which features and components are included in each platform. These features should be considered:</p> <ul class="default-list"> <li>A configurable, drag-and-drop <a href="https://www.techtarget.com/searchcio/definition/executive-dashboard">dashboard</a> to help executives understand compensation trends and costs.</li> <li>Automated, customizable reporting.</li> <li><a href="https://www.techtarget.com/searchbusinessanalytics/definition/data-visualization">Data visualization</a> tools for creating charts and graphs that will also look good in presentations.</li> <li>Analytical tools that give human resources management the ability to analyze compensation data easily.</li> <li>The ability to run comparisons of wages by industry and geography.</li> <li>Support for third-party add-on tools.</li> </ul> <p>Some of the other key features to consider in compensation management software include the following:</p> <ul class="default-list"> <li>Built-in <a href="https://www.techtarget.com/searchcio/definition/decision-support-system">decision support</a> tools and <a href="https://www.techtarget.com/searchdatamanagement/definition/data-modeling">data modeling</a> tools for smart compensation planning.</li> <li>Historical employee data to inform compensation-related decisions for each employee.</li> <li><a href="https://www.techtarget.com/searchsecurity/definition/role-based-access-control-RBAC">Role-based access</a> permissions and user visibility rules to customize who can see what kind of data in the platform.</li> <li><a href="https://www.techtarget.com/searchcustomerexperience/definition/real-time-analytics">Real-time analytics</a> and reporting to facilitate compliance with regulatory requirements and labor laws.</li> <li>Budgeting and forecasting capabilities to design compensation aligned with employee roles and skills, and organizational budget and goals.</li> <li><a href="https://www.techtarget.com/searchitoperations/definition/task-automation">Task automation</a>, including salary calculations and bonus payments, to streamline the compensation process and make it more transparent.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Compensation management software: Limitations and challenges"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Compensation management software: Limitations and challenges</h2> <p>The benefits notwithstanding, compensation management systems also have some limitations and challenges.</p> <p>For one thing, they might not be good at connecting pay to employee potential. This is because compensation analysis is usually based on an employee's historical value, rather than on their potential to add future value. This can result in unfair compensation or <a href="https://www.techtarget.com/searchhrsoftware/feature/How-technology-can-help-identify-pay-inequity">pay inequity</a>, which can lead to employee dissatisfaction.</p> <p>Some companies prepare intricate compensation plans or have unique requirements. Out-of-the-box software might not fully address these needs, and companies might be required to make certain adjustments or customizations, which can be time-consuming or expensive.</p> <p>Lack of <a href="https://www.techtarget.com/searchdatacenter/definition/scalability">scalability</a> and integration can also be roadblocks to successful adoption. Some products are not designed to scale along with growing organizations or to accommodate complex, dynamic compensation structures. Others might not fully integrate with other software, such as human resources information systems (<a href="https://www.techtarget.com/searchhrsoftware/definition/HRIS">HRIS</a>) or payroll. This drawback can create inefficiencies that affect HR productivity. It can also make the compensation process less transparent, which might negatively affect employee morale and retention.</p> <p>Another common challenge is software complexity and <a href="https://www.techtarget.com/searchcustomerexperience/definition/implementation">implementation</a> cost. Some HR personnel and company leaders might need time to learn how to effectively use the software. They might also require additional training, which can increase costs and interrupt their regular work.</p> <p>Finally, compensation software could lead to errors that result in noncompliance with labor laws or pay equity regulations. This can make the organization vulnerable to fines and legal issues.</p> </section> <section class="section main-article-chapter" data-menu-title="Compensation management software market and vendors"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Compensation management software market and vendors</h2> <p>As explained above, compensation management software assists HR professionals and managers in designing optimal compensation strategies. These platforms help streamline compensation management processes, including salary reviews, bonus calculations and allocations, and sales incentives calculations. Through a centralized system, HR teams can access relevant data to perform compensation analyses and inform compensation-related decisions.</p> <p>Gartner has identified some of the leading providers of compensation management software, including the following:</p> <ul class="default-list"> <li>Aeqium.</li> <li>Barley.</li> <li>CaptivateIQ.</li> <li>Deel.</li> <li>MorganHR.</li> <li>Pave.</li> <li>Pequity.</li> <li>Salary.com.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="The future of compensation management and benefits"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The future of compensation management and benefits</h2> <p>Compensation management is having to adjust to rapidly changing workforce priorities. HR departments are increasing their use of analytical software to meet their DEI goals. They're analyzing compensation management data for wage disparities by gender and race, from entry-level positions to senior management.</p> <p>Before the COVID-19 pandemic, <a href="https://www.techtarget.com/healthcarepayers/answer/What-Are-Employer-Sponsored-Wellness-Programs">wellness incentive programs</a> had a significant effect on employee compensation packages, and this effect has only grown in the post-COVID era and its increasing focus on optimizing employees' mental wellness. Financial support for the home office setups of remote and hybrid workers is also becoming part of compensation management. Remote work has also increased compliance issues as employees are increasingly located in multiple states and internationally. Compensation management software has evolved to incorporate compliance features and features for internal currency management.</p> <p>Benefits are an important part of a business's compensation program; compensation management software needs the flexibility to handle new types of benefits and changes to existing ones. For example, some corporate wellness technology programs offer activity-tracking smartwatches, such as the <a href="https://www.techtarget.com/searchmobilecomputing/definition/Apple-Watch">Apple Watch</a>, to employees at no charge if they meet fitness goals. The watch's data, such as the number of steps taken per day, is collected. If an employee doesn't meet the goal, they might have to pay the full cost of the watch.</p> <p>There are also benefit packages that offer employer-subsidized DNA testing, as well as flexible work options, <a href="https://www.hrdive.com/news/returning-to-work-after-parental-leave/638875/">phased return to work</a> for new parents and reimbursement for adoption and eldercare expenses.</p> <p>CHROs need to carefully assess these specific compensation requirements and complexities. Internal analysis can inform their assessment and comparison of various compensation management software, enabling them to select the product that is most likely to meet the organization's and employees' compensation needs.</p> </section> Compensation management is the discipline and process for determining employees' appropriate pay, incentives, rewards, bonuses and benefits. https://cdn.ttgtmedia.com/visuals/digdeeper/4.jpg https://www.techtarget.com/searchhrsoftware/definition/compensation-management Tue, 07 Apr 2026 15:15:00 GMT 60 webmaster@techtarget.com