XERO LAUNCH NEW ‘Changing World of Work’ REPORT - Download Now

This week at Xerocon London, Xero launched its Changing World of Work report, which examines the attitudes and behaviours of small business employers and their employees in the UK in the midst of one of the biggest workplace disruptions we’ve experienced in recent history.

The changing world of work

To produce this comprehensive report, Xero surveyed 344 small business employers in the UK to gain an understanding of the issues that most impact them. The report found:

• Almost half (49%) believe managing employee processes and compliance is taxing their mental health

• 56% said that managing employees in an ever-changing regulatory environment is stressful and confusing

• One third (33%) worry their staff will be paid incorrectly due to confusing payroll legislation.

• 58% said technology that helps to forecast payroll costs would make them less stressed about their business

• One- third (33%) say workforce shortages and retaining staff are one of their top three challenges over the next 12 months

Xero also surveyed 551 UK small business employees, and found that employees are reassessing their values:

• Work-life balance (56%) and personal health and well-being (54%) were noted as top work concerns for the next 12 months

• 23% said they are planning to change jobs within 12 months

• 77% ranked pay and bonuses as one of their top three most important factors when considering a new role. Flexibility of hours was the next most important factor

The role of technology in employee retention

The report also revealed that outdated technology is playing a big role in the issues UK small businesses face. It’s also the top cause (21%) of employee frustration when it comes to admin tasks.

While many businesses embraced a quick shift to digital processes during COVID-19, our research found that one third of small business employers still use spreadsheets for forecasting staff costs and cash flow (36%), managing employee attendance (32%), processing payroll (30%), and managing employee-initiated expenses (33%). 

One fifth use pen and paper for managing tasks like employee leave, time and attendance (21%), and roster creation and management (23%). 

Other findings include:

• Nearly half of small business employers using cloud software found it helped with eliminating manual paperwork (45%) and making processes more efficient (45%)

• More than half (58%) of small business owners in the UK agree that technology to help forecast payroll costs would make them less stressed about their business

• 68% believe that allowing staff to complete people-related tasks would free them up to focus more on running their business

The Changing world of work report has reinforced how critical it is that small businesses adopt technology to help ease stress and frustration, both for themselves and their employees. This has reinforced the importance of our purpose — to make life better for people in small business — and the value of tools that help them manage their workforce.

If you would like to get started with Xero software for your business, get in touch with Zyla Accountants today. We’ll be delighted to help.