HR leaders across the UK feel stressed, burnt out and held back from strategic work due to inefficient payroll technology and processes, according to new research from workforce management platform, Rippling.

The new data is based on a OnePoll survey of 250 UK-based payroll managers across businesses of all sizes. It revealed that around one in three (32%) of those managing payroll spend over seven days a month on the process, holding them back from performing more strategic tasks.

Those in medium to large businesses – employing 500-999 people – are most significantly impacted by the typically archaic payroll processes in place in their organisations. Indeed, nine in 10 (90%) payroll managers are forced to manually input data into spreadsheets every month in order to pay their employees.

As a consequence of this, four in five (77%) respondents in medium to large businesses believe managing payroll is stressful and contributes to feelings of burnout. A similar number (78%) feel held back from focusing on strategic work because of the inefficient payroll processes in their organisation. More than two-thirds (71%) claim they know they need to change their payroll provider, with a further 78% also wanting to change their payroll system but fearful of a painful and lengthy process.

Across businesses of all sizes, a quarter (24%) rely on outsourcing to perform payroll processes, at an average cost of £3.69 per employee per month. For a business employing 2,000 people, this equates to nearly £90,000 per year. When coupled with the significant internal resources required to manage what is a lengthy process, this becomes a costly obligation, with limited strategic return.

Ted Eltringham, business growth lead, EMEA, Rippling, commented:
“Paying your employees is a critical function for every organisation, yet this research indicates the significant level of administrative burden it is placing on the teams responsible for it.

“With HR and finance teams caught up with such laborious repeat tasks, they aren’t afforded the time or headspace to perform more strategically valuable work – limiting their own personal and organisational growth.

“Against today’s uncertain economic backdrop, it is critical businesses can get the best out of their people and aren’t held back by legacy technology. By deploying technology that connects applications, systems and databases – taking the onus of repeat administrative tasks away from people – HR teams are freed up to add more value within their organisations, making it easier to run a business.”