Human Resource tech has gradually shifted from the shadows to the forefront in the post-pandemic business environment. Venture capital investment in HR apps and platforms saw a sudden rise in the last couple of years; approximately $2.02 billion was invested at the start of 2022 alone. The HR function is increasingly employing its L&D function to engage with its employees, with HR Tech tools and platforms being a key enabler to reducing employee resignations, and labor shortages, and facilitating hybrid work. As a case in point AI, ML, Augmented Reality, Virtual Reality, Automation, and Blockchain are some technologies that get the discussion going but are barely understood.

HR Tech simplifies various tedious and manual processes, which has even more significance in today’s world, with hybrid working being the norm. There are many HR tools and learning solutions available today that make business processes and teams more accessible. But like any tech product, these tech tools and solutions have complex implementation challenges and drawbacks despite all their progress. Let’s look at five common obstacles organizations face with HR Tech and what organizations can do to overcome them.

1. Insufficient technical training

Organizations need to acknowledge that while employees have basic skills, most of them don’t have the updated training or skills of an IT professional. This poses significant challenges for the in-office and remote workforce to collaborate and deliver successful results if a considerable knowledge gap exists.

The best method to navigate this obstacle is by deploying a CRM or software like L&D platforms that comes with support, including a community of users, on-demand webinars, and a help desk team. With such solutions in place, managers can focus on their tasks instead of spending their time training their teams or helping them out with trivial issues.

2. Insecure data transfer or storage 

Data security is a crucial issue for any enterprise. Securing sensitive intellectual property (IP) data, customer information from exposure or theft, and financial documents help secure data and the organization as a whole. The increased presence of IoT devices has presented a more significant challenge in ensuring security strategies for organizations.

Avoiding information leaks is critical when organizations deal with sensitive data like employee information, salaries, and more. It’s essential to understand how the tech tools store data and avoid any attempt to transfer the information outside the native software without fully understanding whether and how it impacts the organization’s security. Enterprises can overcome this obstacle by investing in cybersecurity strategies and insurance.

3. Compliance problems

Compliance with industrial guidelines is a critical task for the HR department. Enterprises need to obey any number of state, local, and federal laws across employment practices. It’s the responsibility of an HR department to analyze and monitor these regulations and any changes while ensuring compliance.

Certain HR management systems help support the compliance efforts. The presence of a dedicated specialist available for consultations or the ability to build compliance data right into the tools themselves is a bonus for organizations. If an organization opts for software without compliance features, it’s essential to be aware of the limitations it brings to the business.

4. Struggles to manage multiple integrations, vendors, and upgrades

As more tools get implemented for HR management, organizations need to handle increased billing issues, software updates, maintenance, add-ons, and much more. Additionally, organizations also need to manage upgrades and integrations. Integrating legacy systems with new tech and upgrading older platforms is a lengthy and expensive process. It often presents hurdles that affect daily operations.

Building a strong IT management strategy that eliminates or minimizes the risk factors related to upgrades and integrations is necessary for organizations.

5. Scalability issues 

There are various readymade HR tools available in the market today – however, each of them is designed for organizations of specific strength. Organizations that fit their respective descriptions will benefit from the solution, but others who don’t might find the solution insufficient or inefficient.

As organizations select an HR Tech solution, it is essential to understand how they use it will vary as the employee strength increases. If a higher number of employees means more manual processes, it makes sense to switch software that satisfies the needs better. 

Deploying an HR management system that scales with the business not only avoid hassles and saves time but also helps enterprises shift from a tactical to strategic mindset easily.

With the organizations moving from reactive to proactive responses, the employees are able to take up new initiatives that support their organization’s vision and mission instead of handling issues after they have occurred.


Before the era of cloud computing and mobile apps, the HR function used to be buried with tons of paperwork, a constant struggle for hiring, compliance training, email exchanges, and managing a huge volume of employee data. HR Tech has helped streamline its tedious processes like payroll, record-keeping, and recruitment, thus drastically improving accuracy, efficiency, employee morale, and productivity.

Selection of the right HR Tech/Learning Tech is not a trivial decision and needs a clear understanding of the organization’s needs and demands. It’s vital to opt for a solution that handles all the organization’s HR responsibilities while navigating the complex field of compliance and regulation for organizations.

To learn more about technology in HR / L&D, reach out to our experts today.