Capterra – a Gartner company – has recently published a user study on the main business issues related to HR and the software use among SMEs in the UK.
The main findings show that small and medium-sized businesses are facing challenges related to tracking productivity, sick days, and holidays (25%) and managing payrolls (21%). It was of no surprise when these two were referred as the features in which most SMEs would be willing to invest.
Despite the challenges mentioned and the willingness to investing in solving them, the research found that 45% of SMEs are not using HR software. Price has proved to be the major factor that stops businesses from adopting it. 40% of businesses would only consider free software and a third (30%) said they would be prepared to spend less than £10 per month.
“The functions of HR software can help businesses to solve the challenges they face related to payroll and time tracking.” says Sonia Navarrete, content analyst at Capterra.
“Despite the obvious benefits, there’s a common misconception among SMEs that HR tools can’t help them manage their staff and that it’s an unnecessary expense.”
It is worth mentioning that, according to this research, once companies have tried a software solution, they are more likely to want to stay with software rather than moving back to manual methods or spreadsheets.
The study analysed the responses of 282 participants who are employed (full-time, part-time or self-employed) and work in a small to medium sized enterprise (1-250 employees).
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