Breaking Down the HR Tech Stack

How the right HR tools can build (or break) your company culture

HR technology solutions have the potential to elevate the delivery of HR functions across organizations, but most companies aren’t working from an optimal HR tech stack.

Most organizations use a set of disparate tools, often added over time, to manage their HR functions. While some are necessary to employee management, others don’t deliver results if they are used in silos and never pulled into a connected strategy.

“Performance gaps sometimes exist because companies are using too many disconnected systems,” says Kristy McCann Flynn, CEO and Co-Founder of SkillCycle. “But in other cases, the gaps are simply caused by outdated philosophies regarding performance management.”

Proper performance management should include measurable talent development so organizations can identify and strategically fill skills gaps that could hold them back. As such, your HR tech stack should be a powerful and cohesive system that supports learning and development.

Why does this matter so much? “HR leaders are finding it increasingly difficult to quickly find and develop talent with the most in-demand skills, yet 58% of the workforce needs new skills to get their jobs done,” according to Gartner.

In this ebook, we’ll discuss why connecting learning and performance is critical to delivering on your organizational goals. We’ll explore the tools most companies have in their HR tech stack and how they contribute to company culture (or not). Last, we’ll look at how you can prioritize strategic investments in HR tools and walk you through a more effective solution.

Chapter 1: Why it’s critical to connect learning and performance

Performance management should be about more than just evaluating and documenting employee performance. Instead, it should be a vital tool to assess current skills and continuously develop individuals in your company to support their career goals and meet the organization’s future needs.

“Elements such as performance management, advancement feedback, and growth and development tools should feel like things you are provided with by your company, not tasked with,” says Andrew Hibschman, VP of Customer Success with SkillCycle.

Employees’ performance outputs will improve as they learn and develop in their roles. When this becomes an ongoing loop of learning and contributing to company success, both employees and the organization benefit.

“Performance tools can’t be just an add-on feature,” says McCann Flynn. “There needs to be actionable data that drives learning so you don’t end up with skill shortages in your company.”

You can only achieve effective employee skill development and career progression through a strong connection between learning and performance. Incorporating meaningful learning opportunities for employees increases engagement and retention, and rewards employees for building their skills.

Highly engaged employees produce better business outcomes across industries, company sizes, nationality, and market conditions, according to Gallup.

Yet, many companies fall short of this goal and don’t see the progress they’d like to make on critical fronts. Often, this shortfall stems from overreliance on platforms that fail to genuinely engage or empower individuals in developing new skills and making progress on career goals.

The bottom line? It may seem easiest to opt for add-ons to your existing systems, but the costs measured from an employee and organizational impact perspective are high.

Stay tuned for Chapter 2!