BrightHR, a global leader in HR and health & safety software, today revealed key insights from its second annual ‘Leaders in Tech’ report, showcasing how over 100,000 small and medium-sized businesses (SMEs) worldwide are leveraging HR technology to navigate regulatory challenges and accommodate new workforce trends.

Key findings: HR tech adoption accelerates across small businesses

1. Use of e-learning courses for HR and health & safety compliance is growing rapidly: In the light of new regulatory requirements and the changing nature of work, training employees and managers in employment law and workforce changes has become essential for businesses looking to stay compliant and competitive in a fast-moving regulatory landscape. In the past year, the BrightHR Learning Management System (LMS) saw over 750,000 e-learning courses completed globally, a staggering 1,289% increase on the previous year, highlighting a growing trend of business owners turning to online courses to train their staff in changing employment laws and meet new regulatory requirements.
   
   
2. Scheduling software and remote clock-in technology are helping businesses adapt to flexible work arrangements: As businesses adapt to changing workforce expectations, with research by the British Chambers of Commerce indicating that only 27% of UK SMEs expect their workforce to be fully in-person over the next five years, technology is proving vital in helping employers accommodate flexible work arrangements. In the last twelve months, over 4 million clock-ins were logged through BrightHR’s time-keeping app Blip—a 40.9% increase year-on-year—as businesses embrace tools that facilitate flexible work arrangements and ensure accountability.
   
   
3. HR document libraries are helping businesses navigate regulatory change: Over the past year, SMEs in the UK have had to adapt to a whole host of employment law changes, from new rules around flexible working and minimum wage rises to new tax rules, leave entitlements, and redundancy protections. Amidst these ups and downs, business owners have been turning to expertly created HR documents to stay ahead of regulatory shifts and ensure compliance, with the report revealing that over 2 million pre-made HR and health & safety documents were downloaded globally in the last year, a 44.2% increase on the previous twelve months.
   
   
4. Payroll integration is driving efficiency and supporting compliance: With statutory sick pay (SSP), minimum wage rates, redundancy pay, and holiday pay rules all changing in the past 12 months, and more changes on the horizon when new fiscal rules and employment laws come into effect next April, employers are increasingly demanding integrated payroll solutions that reduce the risk of manual error and ensure compliance. In response to this demand, BrightHR launched its enhanced payroll solution, BrightHR Payroll, in August this year, helping businesses bridge the gap between payroll and HR and protect their businesses by automatically adjusting for all the latest statutory requirements.
   
   
5. The future of employee recognition is digital: As the UK faces rising recruitment costs and a competitive labour market, finding ways to attract and retain top talent has emerged as a top priority for small businesses. In the UK, where recruitment costs are at an all-time high and set to rise further when employer national insurance contributions (NICs) increase from 13.8% to 15% in April 2025, employers are looking for strategies to cut hiring costs and retain top talent. According to Deloitte, companies that prioritise EX see a 25% increase in employee retention, demonstrating the benefits of employee recognition and holistic benefits packages for retaining top talent. The Leaders in Tech report indicates that small businesses are leveraging technology to improve EX and recognise employee contributions, with over 60,000 Praise points shared through the BrightHR Praise tool this year.

Commenting on the launch of the report, Alastair Brown, CTO at BrightHR, says:

“As SMEs navigate increasing workloads and financial uncertainty, automating key HR functions is helping them manage operations, improve compliance, and control costs. At BrightHR, we’re proud to lead this charge, providing the tools businesses need to succeed and grow in the face of challenges.

“Our second Leaders in Tech report clearly shows that HR technology is no longer a luxury but a necessity for small businesses. By embracing innovations in employee recognition, smart scheduling, and e-learning, and using these tools to ensure compliance with regulatory requirements, SMEs can protect their businesses and ultimately position themselves up for long-term growth”.

Find out more via BrightHR’s interactive online report.