What is a global HR tech stack and how do you build one?

For fast-growing, cross-border organizations, human resources (HR) can feel like an endless maze of administration and paperwork — which is why a global HR tech stack can be so helpful.

From applicant tracking and talent acquisition, to performance management and employee engagement, an effective HR tech stack allows you to automate mundane tasks and boost productivity.

But with such a wide array of HR tech available, you need to choose the right tools and integrate them seamlessly.

In this article, we’ll outline the types of software you might need, and explain how to curate a stack that simplifies your HR processes — making your workflow more efficient.

So let’s jump right in.

What is an HR tech stack?

A HR tech stack is a set of integrated digital tools that streamline, automate, and enhance HR functions.

It allows your HR department to manage all stages of the employee lifecycle, and typically includes employee engagement, recruiting, and other core HR tools that streamline and optimize your people management. 

For global companies, a HR tech stack must also include software that allows them to manage employees around the world.

What are the benefits of an HR tech stack?

Here are some of the key benefits of a HR tech stack, especially for companies aiming for global expansion:

Increased efficiency and productivity

An HR tech stack automates repetitive tasks like payroll processing, leave management, and employee recognition. This increased efficiency leads to faster response times, less paperwork, and smoother operations, and allows HR personnel to focus on more strategic and value-added activities. 

Access to real-time data and powerful analytics

Businesses can centralize employee data with an HR tech stack, making it accessible from one log-in point. And with the cloud, users have access to real-time insights from this data. This enables HR teams to make data-driven decisions promptly.

Advanced analytics tools can also provide valuable insights into employee performance, turnover rates, and other critical metrics. Analyzing this data helps HR teams understand trends, identify potential issues, and develop targeted HR strategies.

Better employee communication and collaboration

HR tech solutions often include employee self-service portals and communication tools. These platforms foster transparent communication between HR, employees, and managers, resulting in improved employee engagement and satisfaction.

Fewer mistakes and improved accuracy

Automating HR administrative tasks reduces the risk of human error that can occur during manual data entry or calculations. The right tech tools can ensure data accuracy by validating and cross-referencing information across integrated systems.

Strategic workforce planning and expansion

An HR tech stack offers robust data and trend analysis tools for strategic workforce planning. This allows HR professionals to identify talent gaps, plan for future talent needs, and devise recruitment strategies to attract the right candidates. 

What does HR tech include?

HR tech stacks can vary based on multiple factors, such as a company’s budget and needs, its size and complexity, its industry and business model, and its internal policies.

In general, though, your tech stack should typically include the following solutions:

Recruiting and onboarding

Finding and hiring staff is one of the biggest challenges for any HR team, and this challenge can be heavier for companies hiring internationally. You need to navigate diverse labor markets to find and attract the right talent, comply with foreign employment laws, and account for communication logistics and time zone differences. 

This is why recruiting and onboarding tech tools are essential for a global expansion tech stack. These tools can automate various aspects of the hiring process, including applicant tracking and interview scheduling.

For example, tools like Notion allows companies to centralize information during the onboarding process, while the likes of Greenhouse enable recruiters to design assessments that are aligned with the needs of the position. These solutions standardize the onboarding and application process, ensuring the consistent delivery of information and training materials across various locations.

Core HR processes

A robust HR system allows companies to centralize employee data, including personal information, job history, performance records, benefits, and payroll details. This centralization is crucial for managing your global workforce efficiently — while ensuring data accuracy.

Payroll tools such as Gusto and Quickbooks allow users to ensure accurate and timely compensation for domestic employees, while Remote enables you to pay workers across the globe with ease. 

Task management

Task management is a crucial part of a HR tech stack, allowing managers to assign tasks, set deadlines, and track progress for teams or individuals.

If team members are in different time zones, these tools streamline communication and help ensure that tasks are completed on time.

Tools like Lattice and Leapsome enhance performance management, as they make it easier to monitor goal achievement and identify bottlenecks.

Communication

Employee communication tools are vital to keeping lines open, especially for companies with global employees.

According to a 2023 Forbes Advisor survey, four out of 10 workers say poor communication reduces their trust in both leadership and their team. Remote workers are more affected, with over half saying poor communication impacts their trust in leadership.

Tools like Google Meet and Slack ensure smooth communication — both synchronously and asynchronously — reducing communication gaps and improving employee engagement.

Employee experience

Recognition and rewards platforms promote workplace satisfaction by recognizing your people’s achievements.

Tools like Perkbox foster employee engagement by enabling peer-to-peer performance reviews and awarding points for achievements.

Similarly, solutions like Culture Amp provide a platform for continuous feedback and employee surveys, enabling everyone to voice their concerns and suggestions.

How do you build a HR tech stack?

You can start building a HR tech stack for your organization by following these steps:

1. Assess your needs

Different organizations often have vastly different needs. As a result, start by assessing your processes and identifying your requirements.

For global organizations, there are two major concerns to assess:

• Do you have a legal entity in the countries you’re hiring in? If not, you’ll need a system to stay compliant, such as an EOR service.

• Are you hiring contractors, employees, or both? If you’re hiring contractors, be sure to have a contractor management solution in place to avoid misclassification risk.

2. Research solutions

After assessing the problems you need to solve, you need to review the vendors that provide solutions. 

If your workforce is international (or you intend it to be), look for providers that offer global solutions. The tools you use must be capable of supporting a diverse and geographically-dispersed workforce, which means they must be able to handle multiple languages and currencies, and comply with international labor laws and regulations.

It’s also advisable to choose a system that can scale to accommodate your company’s growth. Flexibility is essential, as your HR requirements may evolve differently in different regions.

3. Choose user-friendly tools

When choosing your tools, you should also aim to opt for user-friendly systems that can be adopted quickly and easily.

According to PwC, 85% of HR leaders believe that training is effective in driving tech adoption, but only 54% say this method is applied in their company.

If necessary, be sure to provide comprehensive training to your HR teams and end-users across different locations to make the most out of your chosen software.

4. Evaluate integrations

If possible, it’s recommended to consider solutions that you can integrate with other tools in your stack. This enables a more seamless workflow, allowing your HR teams to focus on more strategic tasks.

Look closely at which integrations each vendor offers, and ask about planned or future integrations. It’s also advisable to ask if the vendor provides an API.

5. Update as needed

As with anything tech-related, trends move quickly. Always review your current HR tech stack to ensure that it is effective, relevant, and providing value. This ensures that you’re always taking advantage of the latest innovations and supporting your organization’s growth strategies.

Boost productivity and grow effectively with Remote

If you’re looking to hire across borders, then an effective global HR tech stack is simply essential. With the right tools, your HR department can automate tedious tasks, develop a simplified workflow, and gain valuable insights on which to base key decisions.

As mentioned, a typical international HR tech stack includes tools for recruiting and onboarding, task management, communication, employee experience, and a global payroll system.

However, it’s crucial to focus on your company’s specific needs and culture. Remote offers a broad array of HR services for globally-distributed teams, including:

• Global HRIS

• EOR services

• Global payroll

• Global benefits

• Contractor management

• Recruiting and onboarding

• Relocation

…and a lot more.

To see how we can help you smoothly and compliantly streamline your global HR processes, speak to one of our friendly experts today.

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