Less than a third of HR leaders think their systems are fit for purpose – what can you do about it?

Published in January 2025, Fosway’s HR Realities research looks at the challenges, strategies and priorities of HR leaders in the business world – here Fosway analysts look at the changes in the HR tech ecosystem.

The majority (44%) of HR professionals do not believe their existing HR solutions are a good match to the needs of the modern workforce. With changing expectations for the employee experience from changing demographics and the quality of the experience, there continues to be a significant mismatch between what HR teams want and what their solutions can deliver. This is a slight decline in advocacy on 2023 and underlines what a deeply embedded problem this continues to be.

Core HR platforms dominate the HR technology stack as the most standardised HR systems

The HR tech stack continues to be fragmented across most HR processes. Even core HR platforms are only VERY standardised for 58% of organisations, meaning that there are considerable opportunities for platform rationalisation even within siloed processes. One of the challenges of the HR stack being so fragmented is the barriers that can bring, in understanding the interrelationships of different HR processes and the continuity of experience for employees, managers, HR and IT.

Whilst Fosway doesn’t always advocate simply having a single suite solution, making sure that the user experience flows seamlessly between systems is an important consideration.

As a result, simplifying technology stacks and removing system duplication is an important step in creating an effective HR operation that is scaleable and intelligence led, as well as cost optimised.

Nearly half of HR teams have felt increased economic pressure to consolidate their HR systems into a single suite

In a repeat of the numbers from 2023, this year has been characterised by increased pressure to consolidate HR platforms because of economic drivers to reduce costs. Efficiency and cost savings continue to be in vogue, and that pressure shows little sign of easing.

This is an excerpt from the Fosway’s HR Realities research 2024. Get the full insight and discover all the latest market and solution trends by viewing all the infographics here.

What should you do next?

• How will future AI developments change your HR tech stack? Take part in Fosway’s strategic project for 2025: ‘AI in HR’.
• How do you validate your vendor options as a HR leader? Read the latest 9-Grid^TM for Cloud HR report.

Other recommended reading

• Other Fosway research related to Cloud HCM and HR strategy.
• Rethinking HCM: The Cloud HR Ecosystem – part of our Disruptive Insights series.

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