HCM value for the SMB: savings for smaller HR teams

April 3, 2025 - Research Z53

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The complexities of enterprise organizations have historically made them the target for HCM innovation. However, the market has begun to recognize that small and midsized organizations are just as worthy of strong functionality, given the vast amount of work that must be spread across limited HR teams. This work compounds, becoming unmanageable through traditional means, including manual, paper-based processes and homegrown legacy systems. Nucleus identified the typical savings for smaller HR teams deploying modern HCM solutions, which include avoided extraneous headcount of up to three full-time equivalents (FTEs) and reduced compliance risk. Additionally, productivity improvements across processes such as payroll processing, new hire onboarding, benefits administration, and reporting yield total time savings of 75 to 80 percent for HR staff and managers. As the market reflects the SMB’s readiness for more advanced capabilities, vendors should not discount a small business’s ability to successfully achieve positive, incremental ROI from their HCM deployments.

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