Technology is playing a pivotal role in shaping the future of HR. Yet, according to the 2025 SHRM State of the Workplace Report, only 43% of HR professionals and executives rated their organization’s HR technology as effective. This statistic illustrates a gap between the potential of HR tools and their practical application within HR functions.
To explore the opportunities and challenges of HR technology, a panel of experts in tech solutions shared insights and shed light on key trends transforming the field during the session “Shaping Tomorrow's HR: A Thought Leadership Panel on Emerging HR Tech Solutions” at SHRM25 in San Diego. Tech trends such as leveraging artificial intelligence for improved interconnectivity, prioritizing employee experience, and balancing technology with return on investment (ROI) present clear pathways for HR leaders to make a lasting impact within their organizations.
AI Offers Interconnectivity
The opportunities for technology to improve HR functions are endless, but without the right implementation, every new tool, app, or resource becomes a brick — a nonfunctional ornament. When it comes to execution, however, leaders can be overwhelmed.
For Zain Zaidi, CEO of TransCrypts, a document verification platform, the great promise of technology in HR is its ability to make your life easier.
“The issue I often see is that change management is so painful that even if there is a solution that is 10 times better, who is going to go through that long arduous process in the organization to ensure that this system of record, or your benefits management, or your LMS [learning management system], or whatever you’re doing, is actually worth it?” Zaidi said.
As organizations move toward more technology adoption, AI holds a promise of better communication between the various tools and resources. For organizations like Zaidi’s, the opportunity to improve change management and make it easier for HR leaders to switch between tools based on the task at hand is “exciting.”
Using Tech to Allow HR to Focus on Humans
For Deborah Hanus, CEO of Sparrow, a leave management tool, AI is also a way to automate time-intensive compliance tasks for HR, a department that is “perpetually under-resourced.” This will free up time for HR to focus on improving employee experience and other tasks only humans can perform.
The potential impact of providing more robust resources to HR is significant considering that 62% of HR professionals consider leaving HR, according to Sage’s The Changing Face of HR in 2024 report. Reducing the human resources spent on time-heavy tasks can turn the focus to employee experience, an ever-important aspect of healthy, robust organizations.
Employee Experience Could Be as Important as Financial ROI — If It’s Sold Correctly
While it’s clear that employee satisfaction is essential, HR leaders often encounter resistance when advocating for new technologies. The panelists stressed that framing the conversation around financial ROI is a powerful strategy to secure executive buy-in. This involves linking employee experience improvements directly to measurable outcomes such as productivity, retention, and financial performance.
Hanus suggested the use of pulse surveys to continuously measure the impact of new technologies on employee experience. “You don’t necessarily need to wait until the annual engagement survey,” she explained. These insights can not only optimize decision-making but also demonstrate the tangible benefits of technology adoption to CFOs and other stakeholders.
Automation and Employee Experience Don’t Have to Be Mutually Exclusive
Automation in HR can provide a boon to organizations that want to move through the ever-changing business landscape, said Logan Sugarman, CEO of the white-label HR app company Refresh. For example, automating routine tasks allows HR teams to dedicate more time to supporting human-centered initiatives. However, as organizations lean into automation, they must remain vigilant about how workforce reductions could amplify the impact of turnover.
If automation increases efficiency to the point of reducing headcount, HR leaders must consider the added strain on remaining team members when turnover occurs. A leaner organization risks greater productivity losses when even a small percentage of employees leave, highlighting the importance of balancing operational efficiencies with workforce sustainability.
HR technology holds immense promise for transforming the workplace, but its success depends on thoughtful adoption and implementation, the panelists said. Trends such as AI-driven interconnectivity, the automation of administrative tasks, and the alignment of employee experience with financial ROI will empower HR professionals to lead meaningful change within their organizations.
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