Majority of Small to midsized businesses (SMBs) HR leaders rely on spreadsheets and email to manage HR initiatives!
2023 State of HR - Mineral September 2023

Majority of Small to midsized businesses (SMBs) HR leaders rely on spreadsheets and email to manage HR initiatives!

?? SMBs are still relying on the basic tools that have been around since the 1980s.

?? Most small business leaders (73%) are relying on spreadsheets and email to track and assess many of their HR operations, while nearly half (49%) either don’t use or don’t know about automation and technology tools, including AI, to free up employees for more high-value work. SMB HR leaders named clearly integration challenges as their top concern about new technology, according to a new interesting research published by Mineral, part of Mitratech entitled "Mineral State of HR survey" using data from 750 businesses Leaders with 1 to 3,000 employees, representing nine industries gathered by SMB Group .


Researcher found that among the barriers to adopting modern HR solutions, SMBs listed :

? Lack of knowledge about available technology solutions (40%)

?Distrust in AI (36%)

?Resistance to new technology (33%)

?Lack of IT staff/skills (25%) as significant hurdles in embracing modern HR technology


?Retention most critical HR initiative for SMBs

List of most critical HR initiatives

Researchers found that SMBs leaders listed the HR initiative most critical to company success:

??Retain and engage existing employees (87%)

??Attract new employees (57%)

??Automate HR processes (33%)

??Reskill employees (26%)

?? Improve DEI

??Flexible work experiences


?Why aren’t more SMBs investing in HR Technology?

Technology HR challenges for SMBs

Researchers found that majority of SMB HR leaders don't know how to integrate new applications with existing ones and they listed the 3 challenges below:

1?? A lack of awareness/knowledge about the technology solutions that exist

2?? A lack of interest and trust in artificial intelligence (AI) and its applicable use in HR and compliance.

Level of Trust in using AI

Researchers found that more than one-third (36%) of SMB leaders say they are disinterested in the potential of AI technology, and the same number say they have little to no trust of it a number that grows larger as organization size shrinks.

3?? A lack of integration with current or planned technology

Integration HR application

Researchers found that a majority (69%) of leaders said that only some or none of their technology solutions are integrated.


?? Finally, researchers found that SMBs can more effectively future-proof their organizations by prioritizing three strategic investments:

?? Modernize HR operations.

?? Recruit and retain the best people.

?? Find and fill gaps in business productivity

Thank you ?? Mineral, part of Mitratech researchers team for these insightful findings:

Nathan Christensen Carla Yudhishthu Diane Haines

Dave Ulrich George Kemish LLM MCMI MIC MIoL

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#hr #smallbusiness #hrtransformation #digitalization

Kumar Kurhade (HR)

"HR Catalyst: Igniting Potential, Empowering Teams, Elevating Results, Driving Success"

9 个月

Yes, spreadsheets are my saviors mostly. Thanks for the post Nicolas BEHBAHANI

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Mostafa Mahrooghi

Dairy Industrial Operations Manager | Lean Enthusiasm in Food Industry | CI culture expansion | Problem Solving | Ex-Dairy Production & Plant management | "Truth,Treatment,Time"

1 年

HR Behavior is most valuable software

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Amy J. Bray

Certified Executive Coach | I/O Psychology Mentor | Certified Career Coach

1 年

I love the mention of SMB statistics on retention and engagement, thanks!

Ramesh Ranjan

Co-Founder & CEO, Author, Startup Mentor, Business Consultant, Executive Coach, Professor

1 年

Nicolas BEHBAHANI... very insightful. Thanks for your continued research on key topics. It's concerning that many small business leaders are still heavily reliant on outdated tools like spreadsheets and email for HR operations, missing out on the transformative potential of automation and AI. The research findings are revealing, shedding light on the primary barriers hindering the adoption of modern HR solutions, such as a lack of knowledge about available technology, distrust in AI, resistance to change, and limited IT resources. To stay competitive and efficient, SMBs should seriously consider overcoming these challenges and embrace the benefits of cutting-edge HR technology to unlock their employees' full potential and drive business growth. HR can no longer be Tech Shy...HR must become Tech Friendly and leverage technology to augment HR services

Leonardo B. Martins

Diretor Executivo HR Business Partner & Planejamento no Grupo Boticário | Coordenador do Comitê de Pessoas do Grupo Boticario | CFO | Mentor de Startups.

1 年

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