Human resources (HR) administrative overload is a hidden drain on productivity and profits for small and medium-sized enterprises (SMEs) across Ireland. That is according to The Irish SME HR Report 2025, released today by Ireland's leading HR platform provider, HRLocker, which surveyed 400 SMEs in August. The findings reveal that organisations are, on average, spending nine hours per week - equivalent to 58.5 days each year - on manual HR administration tasks.

Widespread inefficiencies and frustration

The report indicates that this significant time, budget and engagement sink, which equates to 22% of a full-time employee's work week, speaks to widespread inefficiencies. Findings suggest that nearly half (48%) of SMEs spend even more than the average nine hours on manual tasks, with some losing over 16 hours weekly. Based on a 40-hour work week at the national average rate of €51,000, these companies are incurring costs exceeding €22,000 per year.

Further, a concerning three-quarters (73%) of respondents frequently enter the same employee data multiple times, indicating a clear waste of effort due to duplication. Organisations across all industries report duplication rates at 70% or above, signifying the prevalence of the issue. However, the problem is particularly pronounced in the Retail & Wholesale sector, where 83% report issues with duplicated efforts.

The research also reveals admin drag as a major source of frustration for HR professionals, with 85% agreeing that time spent on manual processing is not an effective use of their time. The findings suggest that the disproportionate time spent on low-value tasks is taking away from more strategic, people-centred initiatives. In fact, most feel they lack the time required to build a positive company culture (84%) and the opportunity to ensure a good employee experience (72%).

Smaller SMEs (20-49 employees) spend slightly more time on manual processing, averaging 9.3 hours per week, compared to those with 50-99 employees (8.9 hours) and 100-249 employees (8.8 hours). Still, the relatively equal distribution across SME sizes shows that manual processing hours do not scale in line with the number of employees, implying that a certain level of admin is inherent to all operations. However, as the report indicates, larger companies are more likely to have efficient processes and specialised tools in place that cut down excessive manual work.

A clear need for better tools and processes

The findings underscore a critical need for better tools and streamlined processes to alleviate this administrative burden. The data indicates that companies utilising fully fit-for-purpose HR information systems (HRIS) are significantly less likely to experience data duplication (69%) than those mainly using manual processes or a mix of generic tools (75%), demonstrating the tangible benefits of investing in appropriate technology.

"Our research clearly exposes a silent, yet significant, challenge facing Irish SME owners and leaders in their HR operations," says Crystel Robbins Rynne, CEO of HRLocker. "Despite advancements in technology, valuable time and resources are being diverted to repetitive, low-value administrative tasks, such as updating employee records, attendance tracking, and leave management. This not only impacts the bottom line but also prevents HR teams from focusing on strategic initiatives that drive employee engagement, bolster talent attraction and retention, and boost business growth."

HRLocker's The Irish SME HR Report 2025 provides crucial insights for SME owners and leaders in Ireland looking to reclaim lost time, reduce unnecessary costs, and empower their HR teams to contribute more strategically to business success. It is available to download from: https://www.hrlocker.com/downloads/irish-sme-hr-report-2025

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