Folks Unveils Survey Revealing 70% of HR Time in Canadian SMBs Spent on Administrative Tasks

Why It Matters

The admin overload limits HR’s strategic impact, and adopting integrated HR technology can unlock productivity gains and support the cultural initiatives that SMBs deem critical for 2026.

Key Takeaways

• 70% of HR time in Canadian SMBs spent on admin tasks.
• Only 18% of SMBs use fully integrated HR management systems.
• HRIS adoption can save 800 hours annually, about $25,000.
• 60% prioritize culture, yet admin work hinders strategic initiatives.
• Top admin tasks: employee files (37%), recruiting (32%), communication (12%).

Pulse Analysis

The Folks survey highlights a persistent inefficiency in Canadian small‑and‑medium enterprises: HR professionals are still mired in paperwork rather than driving talent strategy. While digital transformation has accelerated in larger corporations, SMBs lag behind, with 70% of HR hours devoted to routine administration. This imbalance not only inflates operational costs but also stalls initiatives such as performance management and workforce planning, which are essential for competitive advantage in a tight labor market.

A striking finding is the low penetration of integrated HR management systems—just 18% of respondents report full integration, and nearly 80% work with fragmented tools. Research consistently shows that a unified HRIS can automate repetitive tasks, reduce errors, and deliver real‑time analytics. Folks estimates a potential 800‑hour annual time‑saving, translating to about $25,000 in reallocated salary expenses, a compelling ROI for cash‑strapped SMBs. Moreover, freeing HR capacity enables a stronger focus on culture, professional development, and employee engagement—areas that 60% of firms rank as top priorities for 2026.

For vendors, the data signals a sizable growth opportunity. Companies that bundle core functions—time tracking, onboarding, performance reviews, and absence management—into a single, user‑friendly platform are well positioned to capture market share. Folks’ all‑in‑one solution aims to address this need, but competition will intensify as more providers highlight AI‑driven insights and seamless integrations. SMB decision‑makers should evaluate not just feature breadth but also implementation speed and scalability, ensuring the chosen system can evolve with their workforce as strategic demands increase.