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Evaluating HR Technology Solutions for Maximum Value
Posted by Meghan Sloan on May 16th, 2023 
*Originally written by Meghan Sloan on May 16, 2023. This content was updated on January 22, 2025.*
HR technology was meant to simplify work, but many HR professionals find it overwhelming. We consistently hear from our HR partners that they are being crushed by the number and variety of technology offerings available. From AI systems to scheduling tools, the flood of options has done little to ease their daily challenges. Evaluating solutions thoughtfully is vital because finding the right tools can make all the difference. In this article, we’ll explore how to assess HR tech options and help your organization maximize the value of these tools.
How to Evaluate HR Technology Solutions
According to Fortune Business Insights, the market for HR technology is projected to grow to $81.84 billion by 2032. We may have more and better tools than ever, but how good is that if they are not being understood or used properly?
While HR technology can provide significant benefits, like improving efficiency, enhancing communication and reducing errors, it can also create new challenges and burdens if implemented incorrectly. The following tips can help you evaluate HR tech, maximize its value and find the solutions that are right for you.
Define Your HR Tech Needs
The first step in maximizing the value of HR technology is to define your needs. Available technologies can provide various benefits for recruitment, training and development, but not all solutions are applicable to every user.
The best approach is to evaluate your existing HR processes, identify areas for improvement and select technology solutions that align with your needs and goals. The latest buzzworthy offering may not be the right one for you if it does not address a real gap or lead to consistent adoption within your organization.
Determine Your Total Cost of Ownership (TCO)
TCO refers to the total cost associated with owning and using HR tech over its useful life. TCO includes not only the purchase price but also the costs associated with implementing, operating and maintaining the HR technology you choose. These costs can include hardware, software, licensing fees, training, support, upgrades and even replacement costs.
To calculate the TCO of HR tech, consider several factors:
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How much is the initial purchase cost?
This includes the upfront cost of purchasing the HR tech solution, including any hardware, software and licensing fees.
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Are there implementation costs?
This includes the cost of setting up the HR tech solution, including data migration, software configuration and employee training.
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What are the ongoing operating costs?
This includes ongoing costs associated with using the HR tech solution, including support, maintenance, team-time to use and upgrades.
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How much will it cost to replace or renew?
This includes the cost of replacing the HR tech solution when it becomes obsolete or outdated.
Ensure the HR Tech Solution Integrates with Existing Systems
Technology can pair well with HR, but it can also overcomplicate processes, depending on what you purchase and how it aligns with current systems. Integration is key for getting value out of HR tech. Putting software in place without proper integration can be a significant source of inefficiency for HR teams.
When choosing and integrating your HR technology, make sure you understand how it works with your existing tech. Determine what integrations and efficiencies are available before you onboard the new technology. Seek ways to avoid duplication of effort and excessive data entry.
Don’t Forget About Data Security
Data security is a critical concern for companies that adopt new HR technology. HR teams should ensure that their HR technology solutions provide robust data security measures, such as data encryption, access controls and regular data backups.
As you evaluate technologies, involve your IT team early in the process to confirm whether the platform has been created with appropriate security protocols.
Invest in User Training
Any HR technology solution is only as effective as the people who use them. Once you’ve chosen the right HR tech solutions for your organization, invest in user training to maximizing the value of the HR tech you choose. Proper training ensures that everyone understands the value of the new tech and how it can make their work easier.
Check into the training that may be available to launch and support your new tech. Some HR technology tools rely on online support and training modules, which may be insufficient or confusing. Ensure that you have real human beings available for initial training sessions and ongoing support.
Most importantly, pick an HR technology partner who has a team of experts who specialize in the value the software delivers. Does the company you are evaluating have experts with real-world experience in delivering the results you are looking for? Having a partner who can go beyond basic system training by strategically advising you on the best ways to reach your goals will help you gain higher ROI while reducing your overall TCO.
Monitor and Measure Performance to Maximize Value
Monitoring and measuring HR technology performance is crucial to identifying areas for improvement and maximizing value. Your technology should allow you to track key performance metrics such as time-to-fill, retention rates and engagement levels. Use this data to make informed decisions about the value of the technology you’ve chosen.
These performance metrics can help you continuously evaluate whether the tool is effective for your organization and adjust processes as needed to increase ROI and reduce TCO.
Balance HR and Recruitment Automation with Human Interaction
Sometimes when we discuss HR technology, we forget that HR is the business of people. Automation is great, but HR technology should not replace human interaction entirely. Remember that you are looking for tools to assist your team, not ways to bypass them completely. HR teams should balance automation with individual connection to ensure that candidates and employees feel valued and supported.
Key Takeaways
HR technology can provide significant benefits to your company, but it is essential to maximize the value while preventing potential burdens. Define your needs, ensure integration and proper measurement, focus on security and invest in user training. By taking these steps, you can optimize the effectiveness of HR technology and improve your bottom line.
Considering adding CRM, a chatbot or other technology to your suite? Let’s discuss your HR tech needs. Contact NAS today.
Meghan Sloan
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