HR Issues and Challenges Related to Technology

HR issues and challenges related to technology
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Today the world of HR has transformed. Automated HR modules have made the tedious and manual work much easier than before. However, we can’t neglect the HR issues and challenges related to technology. 

What are some of the HR technology issues that exist due to the lack of homogenous HR automation software? And what are some challenges they face while implementing HR technology? This blog will present all these common HR issues and challenges related to technology.

The Shift from the Traditional Workplace Environment 

There has been a shift in how the companies operate since the COVID pandemic. Most companies are planning to permanently incorporate the WFH module due to many reasons including an increase in productivity, saving money, and better employee health.

But this also means that companies are moving to cloud-based solutions for managing remote teams’ best practices. HR professionals who lack skills in technology may not be able to keep up with the technology-based environment.

They would need IT, professionals, to provide support. Without IT support, both in-person and remote teams can face challenges that will be hard to overcome. This could be expensive.

Lack of Homogenous Platform 

Sometimes companies have different systems to cater to different demands. They have a separate system for payroll, attendance and time management, and workflow management. It gets hard for the HR professional to keep track of different systems and get acclimated with all the systems.

Data separated into different systems can lead to HR data gaps and inefficient reporting. The need for HR automation software incorporating all the major functions is a must.

HR Data Gaps 

Micro companies or startups are often attracted to individual HR systems. Add-ons seem like a luxury. Sometimes different systems for different modules require manual data entry by HR which may lead to inefficient records.

There is a high possibility that a few of these systems don’t communicate and transfer data back and forth with each other. This can lead to miscalculation of data between systems. Technical support is required by organizations in a scenario like this to get individual systems to work together in the way they can make businesses reach their maximum potential. This usually involves the intervention of an IT specialist.

Management of Multiple Vendors 

If a company is receiving different systems from different vendors. It will get difficult for an HR department to keep up with third parties for technical questions or problems to fix. A single HR automation software will make it easy for an HR department to solve issues regarding technology.

Upgradation and maintenance work by the IT team may cause businesses to lose important data while reintegrating various systems. This could incur huge losses for businesses.

Policy Related Issues

Startups or small businesses may not have to have to keep up with so many laws. But as the businesses expand and grow, they have to keep in mind all the federal, state, and local laws to avoid getting into legal trouble.

Policies keep changing and it gets hectic for HR teams to stay up-to-date on all the new policy trends and compliances.

For example, payroll management in the organization requires complete and thorough research. Some different rules and protocols need to be implemented. Different countries have different data security and taxation rules including PAYG payroll tax for employees.

Outdated and disparate HR systems fail to provide real-time guidance from HR professionals on changes in employment laws. An integrated HR automation software can automatically update the changing laws and rules.

An integrated HR software can change payroll percentages for certain deductions with a cloud-based HR system. It will help businesses not fall into legal trouble.

Data Security Issues

Data security is a major concern for businesses these days. There are many laws regarding this in each country. To keep the data secure, companies are moving to cloud-based HR systems that will reduce the risk of data exposure.

Integrated HR software may be held to industry standards and required by privacy laws to protect sensitive information.

Implementation Issues


The adoption of HR technology has not been a luxury or seen as a preferred way anymore. It has become a necessity now. But the implementation of HR technology has become an issue due to late adopters. Many organizations face certain issues and challenges when it comes to the implementation of HR technology.

One of the major issues that arise while implementing HR technology is that every organization needs a customized solution for reasons including different industries at different growth stages to have specific needs regarding that industry requiring some level of customization to be always there.

Businesses and technology evolve. The tools used by those businesses earlier are no longer needed by them. New solutions to old problems always exist. So, customization becomes essential.

Right HR automation software can scale quickly with the company’s growth to provide customized features regarding employee performance management policies and recruitment workflows.

Utilization of Data

Another HR technology challenge comes while handling vast amounts of data. It is important to understand whether the organization can make sense of that data. Because even if the HR tool has advanced reporting and analytics, it will make more informed decisions only if the team involved can comprehend and leverage those tools.

To overcome these issues, it is important to upskill HR teams so that they can understand the analytics and gather important business insights. It is also important to make a checklist of what data is relevant and what are some of its benefits. After that existing data can be organized and entrance to new HRMS systems will be made.


The Rapid advancement of technology has transformed the world of HR. From recruitment to payroll, to performance management, to workforce management every function has been automated.

But still, there are some issues and challenges regarding HR technology that has been faced by organizations. This blog presented a few of those problems. An integrated HR automation software can help in avoiding some common HR-related issues in an organization.