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

Folks has released its 2026 State of HR Survey, revealing that human resources teams in Canadian small and medium-sized businesses (SMBs) continue to spend the majority of their time on administrative work—limiting their ability to focus on strategic initiatives.

Based on insights from more than 450 HR professionals across Canada, the survey found that 70% of HR time is dedicated to administrative and operational tasks, highlighting a persistent efficiency gap within SMBs.

Administrative Burden Limits Strategic Focus

The study identifies the most time-intensive HR functions as:

• Employee file management and HR administration (37%)
• Recruiting and onboarding (32%)
• Internal communication and coordination (12%)

As a result, higher-value activities such as performance management, workforce planning, and employee development are often deprioritized.

This imbalance is creating challenges for organizations aiming to align HR with broader business goals. While 60% of SMBs rank organizational culture as a top priority for 2026, and 57% plan to invest in professional development, limited bandwidth continues to hinder progress.

Technology Adoption Remains Fragmented

Despite the clear need for efficiency, adoption of integrated HR technology remains inconsistent. The survey found that only 18% of SMBs have implemented a fully integrated HR management system, while nearly 80% continue to operate within siloed technology environments.

The findings suggest significant untapped potential for digital transformation. According to the report, implementing a Human Resource Information System (HRIS) can save organizations more than 800 hours annually, translating to approximately $25,000 in reallocated salary value.

Driving Efficiency Through Integrated HR Solutions

Founded in Ontario in 2010, Folks has positioned itself as a provider of user-friendly, all-in-one HR solutions designed to streamline workforce management and improve operational efficiency.

“Centralizing and democratizing HR information allows HR professionals to become strategic partners rather than administrative processors, empowering them to have a real impact on the organization,” said Jimmy De Santis.

The company’s platform integrates key HR functions—including time tracking, performance management, and absence tracking—into a single system, helping organizations reduce manual workloads and improve employee engagement.

Meeting the Evolving Needs of SMBs

As HR continues to evolve into a more strategic function, the demand for scalable, integrated solutions is growing. Organizations are increasingly seeking tools that not only automate routine processes but also support long-term workforce planning and development.

With its latest survey findings, Folks underscores the urgency for SMBs to modernize HR operations—positioning technology as a critical enabler of efficiency, engagement, and business success.