New report warns of compliance risks stemming from lack of digital HR tools
Some businesses across New Zealand are still behind in the adoption of digital HR solutions, leaving them vulnerable to errors and compliance risks.
This is according to the latest findings from Smartly's State of HR in New Zealand report, which revealed a digital divide among businesses.
According to the report, small businesses are the least likely to adopt digital HR solutions.
Professional services firms are also struggling to keep pace with other sectors in using tech for HR and payroll.
"These are businesses where a team of two or three people are trying to wear every hat – and still manually manage contracts, visas, and leave," said Sarah Garvin, Associate Director of Sales and Marketing at Smartly, in a statement.
A common barrier to HR tech adoption that the report found is perception, as firms believe that these solutions are too big or too complex for their operations.
They may also think that these tools are too expensive for them, according to Smartly.
Accessible tools now available
Smartly, however, pointed out that modern HR tech tools are no longer just for big firms, as accessible solutions now exist for even smaller businesses.
Garvin further underscored that digital tools not only save time but also reduce the risk of errors for employers.
"When payroll and people data live in different places, errors and rework quickly pile up. That's why having everything together in one system built for Kiwi SMEs can make such a difference," she said.