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Written by Kevin Fitzgerald, UK MD of Employment Hero
We often talk about new innovations like they’re hunters waiting to pounce and change our lives overnight. But in reality, it creeps in gradually.
Humans are naturally resistant to change. I recently left Singapore after 7 years and returned to my Irish roots with my wife and newborn twins. Adjusting to the questionable weather and the chaos of no sleep has been a challenge, to say the least.
Despite the difficulty, it was the right decision - much like change in business. When I first moved to Singapore, cloud accounting was a foreign concept. My job was to convince thousands of customers to adopt this technology because “it was the future.” Fast forward to 2024, and cloud technology is now a staple in business operations, but the journey to acceptance was anything but easy.
Now, we’re facing the emergence of AI and the fourth industrial revolution, and once again, a lot of people are apprehensive. AI is reshaping our industry, yet its true potential remains untapped due to fragmented, disconnected tools. There are countless solutions available - some automate payroll, others streamline recruitment - but no single platform brings it all together… until now.
In 2024, when we’re more connected than ever, this disjointed approach is a huge problem for businesses, especially time and cash poor SMEs.
AI is only as effective as the data it’s given. To truly revolutionise employment, every part of the ecosystem must be connected. This means integrating HR, payroll, hiring, and benefits into a seamless system. This concept is known as integrated software, or what Employment Hero has coined the Employment Operating System, or employment OS.
The traditional SaaS model was celebrated for flexibility and scalability and 10 years ago, that’s exactly what the industry needed. But now it’s showing its limitations and UK SMEs are increasingly burdened by fragmented systems, multiple vendor management, rising costs, and integration challenges.
Let’s dive into the concept of employment OS and explore why ignoring it could be costly.
The old-fashioned way
Business functions generally operated in silos, each with its own team and processes. During the SaaS boom, this approach seemed logical - different teams, different focuses. But this separation leads to communication and data quality problems.
I’ve been having loads of these conversations recently - HR managers and SME owners tell me that they have between 5-8 different systems for managing employment. Imagine the money and resources that are poured into keeping them all running… it's a logistical nightmare.
Here are some issues caused by separate functions:
1. Employee experience
A disorganised onboarding process, HR mishaps, and payroll errors can frustrate employees, making them feel undervalued and disengaged. This can lead to attrition, which we already know is hugely costly for businesses.
2. Operational inefficiencies
When processes aren’t synchronised, inefficiencies multiply. Disconnected HR, onboarding, hiring, perks, and payroll functions often result in redundant work, inconsistent data, and slow processing times, causing confusion across the board.
3. Compliance and legal risks
Internal inefficiencies are problematic, but compliance and legal risks pose an even bigger threat. Failing to integrate processes exposes businesses to risks like incorrect tax filings, missed benefit payments, and potential legal troubles - all things businesses with small teams want to avoid.
Employment OS - the future of employment management
I predict that within the next 10 years, every software provider in our industry will pivot to the Employment OS (Operating System) approach - Employment Hero is just getting there first.
We already see this trend across other industries - in retail, the rise of marketplaces (i.e ecommerce stores selling every product under the sun), or financial products that offer more than your standard bank.
Employment OS unites the entire employment ecosystem in one centralised platform. We believe that this shift will revolutionise employment, making the lives of SMEs and HR professionals easier. Our analysis shows that managing employment through disconnected systems can cost businesses the equivalent of over 8% of their total payroll expenses! Employment OS can reduce that to less than 1%
The cost of standing still
Change is never easy, but in the rapidly evolving world of work, standing still is not an option. Employment OS is not just another trend; it’s a solution to the fragmented systems that have held businesses back for too long.
Employment Hero is leading this transformation, offering a unified platform that streamlines hiring, payroll, and engagement, powered by industry-leading AI and experts who understand the challenges UK SMEs face. It’s not about replacing human touch; it’s about empowering it with smarter, connected solutions that save time, reduce costs, and elevate the employee experience.
We exist to simplify employment for everyone. Our commitment is to continuously build the best employment system, empowering SMEs and their teams to focus on what they do best - growing their business and taking care of their people.
