Irish SMEs face €22,000 in additional annual cost from HR administration inefficiencies.
Small and medium-sized enterprises (SMEs) in Ireland are losing more than 58 days per year to manual human resources (HR) administration, according to new research published by HRLocker.
The Irish SME HR Report 2025, based on a survey of 400 companies conducted in August, estimates the average cost of this inefficiency at up to €22,000 annually.
“Despite advancements in technology, valuable time and resources are being diverted to repetitive, low-value administrative tasks”
The report finds that SMEs spend an average of nine hours per week on manual HR tasks such as updating employee records, tracking attendance, and managing leave. This equates to 22% of a full-time employee’s weekly workload. Nearly half of respondents reported spending more than the average, with some companies losing over 16 hours weekly.
Duplication of effort
Based on a 40-hour work week and the national average salary of €51,000, the time spent on administrative tasks translates into a significant financial cost.
The report highlights that duplication of effort is widespread, with 73% of SMEs frequently entering the same employee data multiple times. Duplication rates exceed 70% across all sectors, rising to 83% in retail and wholesale.
Crystel Robbins Rynne, chief executive of HRLocker, said the findings reveal a persistent challenge for SME owners and HR teams.
“Despite advancements in technology, valuable time and resources are being diverted to repetitive, low-value administrative tasks,” she said. “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.”
The report also identifies frustration among HR professionals, with 85% agreeing that manual processing is not an effective use of their time. A majority of respondents said they lacked the time to build a positive company culture (84%) or improve the employee experience (72%).
Smaller SMEs, defined as those with 20 to 49 employees, spend slightly more time on manual HR tasks than larger firms.
However, the report notes that administrative workload does not scale proportionally with company size. Larger organisations are more likely to have access to specialised tools and processes that reduce manual work.
Companies using dedicated HR information systems (HRIS) reported lower duplication rates (69%) compared to those relying on manual methods or generic tools (75%). The report suggests that investment in fit-for-purpose technology can help reduce inefficiencies and improve HR productivity.
Top image: Crystel Robbins Rynne, chief executive of HRLocker
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