The HR–IT Connection: Why Collaboration is Key to Unlocking ROI in HR Tech

Why do HR and IT need to work together on HR systems? 

HR-IT collaboration is essential for getting ROI from HR technology because tools alone don't drive results. HR brings expertise in people, compliance, and workforce needs, while IT provides knowledge in systems, data security, and integration. 

When these functions work together, businesses avoid costly silos, improve adoption, strengthen compliance, and ensure systems actually support workforce goals. For small businesses in particular, early IT involvement, shared goals, and clear communication help transform HR tech from a basic system into a strategic asset that saves time, reduces risk, and enhances employee experience. 

The Role of HR and IT in Making Effective HR Technology

For small businesses, investing in HR technology can feel like an instant solution to payroll, timekeeping, and other HR-related needs: just buy the software, flip the switch, and watch administrative headaches disappear. 

Anyone who has gone through an HR tech implementation knows better, however. Tools alone don’t drive transformation. In fact, nearly one in four organizations say their new HR technology fails to meet adoption expectations. 

But often the core reason that HR technology initiatives don’t produce desired results is not because the software is lacking. It’s because HR and IT failed to work together in its implementation. HR’s expertise in people, compliance, and workforce strategy is not always enough; successful tech deployments also often require IT’s own expertise in systems, security, and data management. The same can also be true in reverse when IT tries to deploy technology to an organization’s workforce and struggles with adoption or usage. 

In other words, it’s only when these two perspectives align that HR technology becomes an asset that reliably saves time, reduces risk, and elevates employee experience. 

In fact, alignment between HR and IT has become so critical that some industry leaders have even speculated about the two functions merging. While it’s unlikely we’ll ever see IT and HR become a single department, the idea itself reflects just how interdependent they have become and how important business technology integration is, especially when it comes to emerging technologies like AI.

Digital Transformation Depends on HR-IT Alignment

The importance of HR–IT collaboration became especially clear during the pandemic. 

“As a significant number of employees continue to work remotely, HR and IT departments are expected to collaborate more than ever before,” Michael Stephan, U.S. Clients and Industries Leader for Deloitte Consulting LLP, observed back in 2020. Today, AI tools might be where IT and HR intersect the most. 

Regardless of specific tech trends, the key is that alignment between HR and IT becomes especially critical during times of digital transformation in the workplace.

But as organizations use modern technology to become more efficient and productive, any effective digital transformation needs stewardship from multiple parties. With AI, as with remote working, IT will handle the “digital” part of the equation. However, as Lisa Highfield of advisory group McLean & Co. explains, the “transformation” piece “is really about the people.” That’s HR.

Common Pitfalls When HR and IT Operate in Silos

Despite the clear need for alignment, silos remain both common and costly. 

• Implementation challenges. HR sometimes selects software without consulting IT, only to discover later that the system doesn’t integrate well or poses security risks. Josh Bersin notes that the average organization has roughly 80 HR systems in place; large enterprises may have more than 150. For both HR and IT, that level of complexity is virtually unmanageable without collaboration.

• Reverse dependencies. It's not just HR relying on IT. IT-led initiatives often need HR's expertise in skills, performance management, employee training, or recruitment to succeed. Neither function can maximize effectiveness without the other. 
• Compliance and security gaps. HR handles highly sensitive employee data; without IT's safeguards, companies risk breaches or compliance violations. Conversely, without HR's expertise in compliance regulations and requirements, IT's own understanding of its full range of compliance and security obligations might be incomplete. 
  
• Hidden costs. Without alignment, businesses waste time troubleshooting, double paying for overlapping systems, or leaning excessively on vendors.

Why This Matters Even More for Small Businesses

The risks of siloed HR and IT aren’t confined to large organizations. In fact, they may be even more acute for small and mid-sized businesses.

Most small companies don’t have the luxury of fully staffed HR or IT departments or sophisticated business technology integration. HR might be handled by an office manager or COO, while IT support is outsourced or shouldered by someone wearing multiple hats. HR technology platforms and tools are acquired piecemeal, one at a time. Budgets are tighter, making every misstep more expensive.

This environment also increases the risk of “shadow IT,” when HR leaders or teams adopt tools or workarounds on their own, without IT oversight, creating integration and security risks. Conversely, IT may attempt to engineer HR fixes without understanding the compliance or cultural implications.

Practical Steps to Foster HR-IT Collaboration

The good news: small businesses don’t need big bureaucracies to align HR and IT. They just need deliberate communication and shared accountability.

• Break down silos. “The disconnect often looks like two departments working in parallel rather than in partnership,” says Jackie Dube, Chief People Officer at The Predictive Index. “Misalignment slows transformation, stalls technology adoption, and limits an organization’s ability to modernize, especially as AI becomes a bigger part of how we work.” 

• Speak the same language. “When I first started working with ServiceNow’s CHRO, we spoke different languages,” recalls CIO Chris Bedi. Bridging that gap requires each function to understand the other’s priorities and vocabulary.

• Schedule regular check-ins. As with all relationships, communication is key. At a smaller organization, even just a 15-minute monthly sync can prevent problems. Regardless of the frequency or duration of these meetings, however, they should offer opportunities for both HR and IT leaders to share current priorities and constructively express frustrations and successes. The tone should be collaborative; the natural alignment between HR and IT creates a lot of room for mutual benefit.

• Define shared goals. ROI isn’t just about cost savings; it may include faster onboarding, reduced compliance risk, or better employee engagement. Complicating matters, HR and IT will probably define success differently, and to maintain alignment, both need to be aware of the other’s objectives and metrics. 

• Involve IT early. Don’t wait until contracts are signed. IT should be present during vendor selection, pilot testing, and system upgrades. Then, IT needs to understand the context in which HR is operating. Compliance deadlines, onboarding surges, and employee experience priorities must shape IT’s own approach.

• Leverage external partners. PEOs, managed service providers, or HR tech consultants can help bridge resource gaps when in-house teams are thin. For example, HR platforms like CoAdQuantum provide extensive HR management capabilities in a form designed to lighten the load on an organization’s in-house IT staff and resources.

The Payoff: Turning HR Technology into a Strategic Asset

When HR and IT work together, HR technology shifts from being just another system to a genuine driver of business value. The benefits compound. Faster, smoother HR processes like payroll, onboarding, and benefits administration will yield higher employee trust and satisfaction with digital tools.

Stronger compliance controls and better procurement of high-quality workforce data will provide a future-proof foundation for more ambitious HR strategy, from advanced analytics to AI-driven talent management.

This is the heart of business technology integration: making sure systems not only function but contribute to broader organizational goals. With collaboration, HR tech in 2025 can become a genuine enabler of growth, resilience, and competitive advantage.

HR Tech 2025: Collaboration is Today's Real ROI Driver

Whether it’s adapting to remote work, leveraging AI, or navigating digital transformation, the pattern is clear: the organizations that get the most from their HR technology are the ones that treat it as a shared responsibility. For small businesses in particular, this partnership can mean the difference between a smooth, secure system and a costly misfire.

FAQS on HR Technology and IT Alignment

CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with HR administration, benefits, payroll, and compliance. We also offer the industry’s leading technology platform to simplify HR management, streamline operations, and enhance workplace efficiency: CoAdQuantum. To learn more, contact us today.

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