HR puts tech upgrades at top of to-do list
HR departments are signaling a big pivot in their strategic priorities for 2026, with tech upgrades emerging as the dominant focus after years of grappling with inefficient, fragmented systems.
According to a recent survey of more than 1,000 HR decision-makers by HCM tech company Paycom, 43% plan to prioritize HR tech upgrades and improvements in the coming year, reflecting frustration with outdated workflows and incompatible platforms. Four in five HR managers anticipate their organizations will purchase HCM software over the next 12 months.
“The need for automated, impactful HR technology has never been greater,” said Shane Hadlock, chief client and technology officer at Paycom. “As we head into 2026, organizations are recognizing the need to upgrade from outdated systems and invest in solutions that streamline repetitive work.”
The push for new tech isn’t happening in a vacuum. Nearly one-third of HR professionals identified time spent on repetitive tasks as a ranking factor shaping priorities in the year ahead. Another 28% pointed to inefficient workflows and unreliable data as key pain points.
Those challenges trace back to a fundamental structural issue: fragmented tech systems. This past spring, a report from Forrester commissioned by Paycom revealed that organizations use an average of 6.17 providers to manage the employee lifecycle, with 77% of teams storing data across multiple HCM databases. The result? Four in five respondents said disparate or duplicate employee data negatively impact their ability to create accurate reports.
“We should be integrating new software that makes manual tasks more automated,” one survey respondent noted. “We need to reduce manual tasks in the HR department so that the process is more seamless, and we can better track changes in needs.”
As HR departments evaluate their options, interest in consolidated platforms is growing. More than 91% of respondents in the Forrester study expressed interest in a single HCM software built on one database, while 84% said such a solution would positively impact their business goals. Improved data accuracy topped the list of expected benefits.
Tech modernization isn’t just about consolidation; it’s also about capability. Fifteen percent of HR professionals ranked increased use of AI as their No. 1 priority for 2026, signaling growing confidence in the tech as a tool for reducing administrative burden and improving decision-making.
While tech dominates the conversation, HR leaders expect to balance multiple imperatives in the coming year, including to-do items like focusing on upskilling and reskilling and enhancing the workplace experience of employees.
Meanwhile, Paycom’s report points to a pivotal moment for HR teams. After years of making do with patchwork systems and manual workarounds, organizations would seem ready to invest in the technology needed to operate efficiently at scale, with the promise of AI at its center.