Technology | Why tech anxiety is holding back payroll innovation in small businesses

As an HR professional, you know just how high the stakes are when it comes to payroll. A small mistake can result in fines, wasted time and loss of employee trust. Yet, new research from Employment Hero shows that tech anxiety is actively holding back payroll innovation in small businesses.

When we conducted this research, we wanted to understand how small businesses are really feeling about their payroll systems. I was genuinely surprised to learn that 70% of small business leaders are worried about falling behind on payroll technology.

You’d think that, with the growing number of payroll solutions available, they’d be spoilt for choice. But instead, many are stuck in a loop of anxiety. Rather than feeling empowered by the options available, they’re overwhelmed by the uncertainty of choosing the right system, which leads them to continue relying on outdated legacy systems.

The fear of adopting new technology, whether due to cost, complexity or simply not knowing where to start, means businesses are stuck in a cycle of outdated processes that aren’t fit for purpose anymore. As HR professionals, you’re in the unique position to help drive this change, but first, we need to understand why it’s happening.