How to audit your current HR stack and understand what’s working
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You didn’t set out to build a messy HR stack, but somehow it just happened. Tools that should help you simplify HR operations now cause overwhelm, and your data is scattered across different apps and platforms.
Maybe you need all these tools, but maybe you don’t. There could be a much simpler way to organise your HR data, but to get there you need to audit your HR stack to figure out what’s essential and what isn’t.
What your HR tech audit can do for you
There are no downsides to running an HR tech audit (apart from a time cost), and plenty of upsides. We’ll focus on three main benefits as they’re the most impactful for small businesses.
1. Save you money
You’ll be amazed at just how much you’re spending monthly or annually on all your different HR tech. What initially seems like a small subscription can quickly rise as you grow, or as you add even more tools to your stack.
An audit helps you identify tools you can cut back on or remove, saving you money. You might also discover that you can get the same functionality in just one platform — giving you a huge saving every month.
2. Help you stay compliant
Staying compliant is a concern for every small business leader, and having your data spread across multiple apps and locations increases your risks. An HR stack audit allows you to identify exactly where your data is and whether it’s being stored appropriately.
As you complete your audit, consider whether the software platforms you use are compliant with the right legislation. If they’re not, seek out an alternative. There are also some platforms that make it easier for you to stay compliant with your HR operations — like Charlie. Keep (or add) these tools as they’ll make your life easier.
3. Give you more time back to focus on your business
Whether it’s you managing all these different systems or you have a dedicated HR person, all the switching back and forth wastes valuable time and energy. Instead of growth and development your time gets taken up by HR admin and troubleshooting.
Your HR tech audit will help you figure out the must-have systems and what you can get rid of. Simplifying your tech will allow you (or your HR person) to save time, regain focus, and make more strategic decisions.
Your HR tech audit first steps
An audit makes perfect sense, but how do you get started? Here’s how to kick off your HR tech stack audit with some small steps that lead to quick wins.
1. List out every tool you currently use
The first step in your HR tech audit is to make a list of every tool you and your team members currently use. It’s important to capture every software tool you use, even if it’s not specifically designed for HR.
Some examples include:
- HR information system (HRIS)
- Applicant tracking system (ATS)
- Time-off management tools
- Employee reward and recognition tools
- Benefits platforms
- Performance management software
- Onboarding software
- Analytics and reporting tools
- Payroll software
- Employee hub software
- Internal communications tools
Your list might seem long, but that’s a good sign that your first step was successful. From here it’s all about making that list smaller and more strategic.
2. Define the purpose of each tool
This step is shorter than the first, and involves noting down the purpose of every tool on your list. While you might know at a glance, considering each tool’s purpose gives you a chance to reflect on how it’s used.
It might be at this stage that you realise you actually pay for multiple tools that do the same thing. If you do, you can quickly identify one or more apps that you can stop paying for.
3. List out all the costs
Now it’s time to write down all the costs for your HR software. It’s worth reviewing your own receipts for this step, as what your business pays might be more or less than what the software company currently quotes on their website.
List out all costs associated with your software, including:
- Monthly or annual platform subscriptions
- Per-user or per-seat costs (if not included in the above)
- Extra paid features
- Ongoing support costs
- Anticipated price increases (if known)
This step is the one that surprises most people. It’s easy for subscriptions to build up over time, and seeing what you pay monthly all together can be a real wake-up call to look for a more affordable, consolidated system.
4. Evaluate usage and adoption
Encouraging people to use HR software is an ongoing challenge. If there’s any friction, people prefer to abandon using the tool altogether. With most software on a monthly subscription basis, you’re likely paying for tools that you simply don’t use.
In this step, you’ll want to understand usage across the company. Here’s how to do it:
- Evaluate how often the tool gets used
- Understand which team(s) use the tool the most
- Ask team members for their feedback
Collect all your research notes and use it to help you understand whether you’re using your existing software effectively or not. You might discover that you’re not using features that you pay for, or that you could make everyone’s lives easier by switching to just one platform for everything.
5. Consider integrations and data flow
In an ideal world, all your tools sync data between them seamlessly. Unfortunately, in the real world, getting software to integrate smoothly is more of a challenge. For your HR tech stack to work effectively, you need to trust that data can flow effectively between different apps.
Go through your list and note down connections and integrations between tools — especially with core software like your HRIS or payroll tool. If there isn’t an integration, explore whether you can use a platform like Zapier to create one. If that still isn’t possible, it’s likely that you can find a better replacement that does integrate with your essential software.
Download our free spreadsheet to help you run your HR tech audit]
Download our checklists
How to spot red flags and opportunities to save time and money
As you complete your audit, you’ll quickly spot opportunities where you can cut a tool out or change the way you use it. Look out for red flags like:
- Tools with low usage
- Tools that are hard to use
- Poor integrations between systems
- Manual systems and processes
- Expensive tools with no clear value
- Tools that team members complain about
Before you remove a tool, be sure to consult with anyone that uses it. It may be essential to the work that they do, or they might be able to suggest a better way to use it.
After the audit is complete, review your findings in a board meeting. Show your plans, and explain how much more cost efficient your team could be with an all-in-one solution.
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How Charlie can help you solve your HR tech issues
It’s clear that the fix isn’t to add more tools or try and manage with software that’s not fit for purpose. In most cases, simplifying your HR tools as much as possible is the route forward.
Here’s how Charlie can solve your tech overwhelm and cost issues.
All your HR tools in one place
With Charlie, all your must-have features are in one platform. Everything from your employee data and time-off management, to employee engagement and performance reviews happens in the same place.
All your data is stored securely in one location, and there’s no more hunting around to find the right spreadsheet or single-purpose app. You can manage your HR operations smoothly from one dashboard.
Easy to use
The last thing you or your team members want is to spend hours in training sessions. Charlie is user-friendly, and everything from the simple DIY onboarding to using the platform has been designed with ease-of-use in mind.
Your dashboard is clear and uncluttered, with alerts and notifications in the right place. Navigating between features is easy, and it’s clear how you complete tasks, goals, and processes. Charlie is designed to be easy to use whether you’re an admin or an end user.
Fit for small businesses looking to grow
You might be a small business now, but scaling and growth could be in your future. If you have plans to grow, you’ll be glad to know that Charlie can scale with you.
Nurture your company culture and support development with effective performance reviews. Keep team members engaged with polls and perks. And when you’re ready to hire at scale, consider investing in Charlie Recruit.
How Charlie has already helped other small businesses cut down on tech expenses and overwhelm
Charlie has been part of the journey for many small businesses, including Daye.
Back in early 2018, when Valentina Milanova’s company Daye became more than just her, she knew right away she didn’t want to rely on spreadsheets. So, she started using Charlie on the recommendation of a fellow founder.
Valentina Milanova, CEO & Founder at Daye
“CharlieHR was the first HR system we ever used, and we really enjoyed it from the get-go, so we stuck with it ever since.”
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Charlie helped Daye’s needs as a growing company, through both HR software and our HR advice service.
Valentina Milanova, CEO & Founder at Daye
“We use all of Charlie’s functions – and we find them very valuable for our business. We can save a lot of valuable time from admin tasks. Our HR team is very happy, and our employees enjoy receiving and providing regular feedback through the platform.”
It’s not just Daye that has seen results from switching to Charlie.
The SEO Works grew quickly, doubling their team from 48 to 90 people in just a few years. This expansion made it clear to Ellie Mckenzie Burrell, HR officer at The SEO Works, that their operations needed to adapt.
Ellie Mckenzie Burrell, HR Officer at The SEO Works
“It became evident that we needed a more sophisticated solution to elevate this pivotal aspect of our operations and help facilitate our next phase of growth.”
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Ellie’s goal was to find a unified platform that could handle all things HR — from employee data and onboarding, to time-off management and leadership insights. And she found that in Charlie.
Ellie Mckenzie Burrell, HR Officer at The SEO Works
“Workflows are a lot smoother thanks to Charlie. Multiple areas of HR are now effortlessly managed from one, central place.”
Simplify your HR tech stack with Charlie
Switching from a stack of tools to one main tool and a few integrations might feel challenging, but we’ve designed Charlie to make the whole process easy.
To get started, book a demo with our sales team. They’ll introduce you to the platform and show you around. Next, enjoy a no-commitment free trial so you can explore the features on your own or with your team. When you’re ready to switch, it’s easy to sign up for Charlie and get started.
Make the switch today
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Written by:
Jenny Tattum
Jenny is a Senior Product Manager at CharlieHR. She has years of experience with product planning and development, and user research too – she put together this guide by collecting data and information on competitors so we could improve our product and tailor it to small business owners.
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FAQs for auditing and simplifying your HR tech stack
Here are the most commonly asked questions about using Charlie to simplify your HR stack.
We recommend auditing your software at least once a year. This gives you a chance to see whether any changes you’ve made since your last audit were helpful, or whether there are tools you can reduce, remove, or invest in to make things easier for your team.
The people involved in your HR tech audit will depend on the size and structure of your company. The CEO, HR representative, and IT team leader are all key people to include in the audit and decision-making process. Be sure to get feedback from all team members on how they use software.
If you don’t audit your HR systems, you potentially expose your business to risks with compliance and information security. There are also productivity and efficiency costs to be mindful of.
You can use our free HR stack audit template to help you complete an audit. Download your free template here.
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