HR Insights: Most organisations aren’t ready for HR tech

An interview with Pirashan Nagalingham on how to prepare for HR tech.

As HR digitalisation continues to accelerate, many companies see 2026 as the year to take their HR and payroll management to the next level. However, in most cases, they don't have a strong enough farmwork to integrate a new, digital way of working.

We sat down with Pirashan Nagalingham, Global Sales Manager at SD Worx, as he outlined the missing HR foundations that organisations need to take their HR digital, and the four things organisations must fix before investing in new technology.

1. A lack of strategic thinking

The most common reason HR tech fails within organisations is the lack of strategy behind it. It can be easy for organisations to chase shiny technology without a clear picture of where they stand.

Pirashan explains, “I see companies buying HCM systems like Workday or Oracle without knowing whether they even have their salary data or workforce costs in order. That tells me the strategic layer is simply not there yet.”

Instead, organisations need to step back and build a clear, purpose‑driven roadmap. Before investing in tools, they should define the business problem they’re trying to solve, outline the outcomes they expect, and assess whether their current processes and data can support those goals.

2. No existing data

Even the best technology can be useless without reliable data at its core. Pirashan recommends, “Start with the basics. Map what you actually have, from systems and salary costs to employee demographics.”

This includes core HR and payroll data such as:

workforce headcount and demographics
salary structures and total reward costs
time and attendance records
turnover, absence and productivity metrics
recruitment pipelines and talent shortages

“Only then can you talk about strategy. HR must learn to sell internally, to make tangible the impact of not addressing talent shortages or productivity gaps.” 

3. The organisation is stuck in the past

Digital transformation requires a change in mindset, which some organisations aren’t ready for. Eventually, Pirashan sees the move towards more flexible, skill-based companies as inevitable.

“Start-ups and scale-ups are already there. Older companies struggle because both systems and mindsets are rigid.”

Some organisations still rely on manual spreadsheets or paper-based processes. Others hesitate to adopt AI-powered tools that could automate workflows, improve accuracy or support managers in decision-making.

Many also cling to rigid job descriptions and hierarchical structures rather than embracing flexible skills-based work. These legacy habits slow down transformation before technology even enters the picture.

“Behavioural change takes time: on average 18 months for an individual, let alone a 100-year-old organisation. But without it, you can’t build fluid organisations fit for the future.” 

4. The HR function is too separate from the business

HR itself must evolve if organisations want modern, agile ways of working. Many companies keep their HR function separate and aligning with wider business goals will be essential in the future.

He adds, “We’ll always need a CHRO or CPO, but HR should be more blended into the business. Managers need to own HR themselves – supported by a leaner HR backbone.” 

To stay competitive, companies must treat HR as a strategic driver of business performance rather than a separate support function.

Be prepared for HR digitalisation

Pirashan’s message is clear – before organisations can benefit from HR tech, they must strengthen their strategic foundations, clean their data, evolve their culture, and integrate HR into the business. The companies that invest in these essentials today will be the ones ready to embrace the opportunities of 2026 and beyond.

For more insights from Pirashan on the future of work, check out HR Trends 2026: Focus on the moment.