What are the main challenges impacting HR professionals in 2025?

HR and payroll teams are under more pressure than ever.

There’s so much to manage, and burnout in HR professionals is becoming increasingly common. 

In this blog, I’ve explored the main challenges HR professionals are currently facing and taken a look at how technology can help.

The challenges impacting HR and payroll

One of the biggest issues which continues to impact HR and payroll is having too much to do and not enough time to do it.

I've never met an HR person who doesn't have a to-do list as long as their arm.

The main demands impacting HR professionals will vary across businesses, but some of the primary challenges we're seeing regularly in the industry include:

• Post-pandemic trends: The pandemic saw the widespread adoption of working from home, which many HR professionals are still feeling the impact of to this day – the need for new policies, processes, technology and training has been a huge consideration. I'm also seeing some employers now consider a Return to Office (RTO), which once again requires HR professionals to adapt, advise and action, whether that's developing and communicating new policies, or consulting with senior leadership to identify what the best option is for their business.
• Changing legislation: The Government has also introduced the Employments Rights Bill, which facilitates significant changes such as the right to request flexible working from day one and changes to unfair dismissal, parental leave and sick pay. Keeping up with legislative changes and ensuring you're able to respond to your employees and manage additional processes and queries is huge.
• Business expectations: There are a lot of expectations and responsibilities placed on HR, such as onboarding new starters, offboarding leavers, managing employee queries, processing payroll, managing absences and regular reporting. This business-as-usual (BAU) activity needs to be managed alongside more strategic and reactive work – such as focusing on wellbeing and engagement, learning and development and workforce planning.

Technology has a huge impact on all these areas.

Unfortunately, many businesses and HR professionals rely on manual processes, resulting in widespread burnout across our profession.

In fact, research found that a third of HR professionals are considering quitting due to burnout.

Whether you can cleverly use technology to automate and streamline the above challenges can make or break HR teams.

From what I've seen across our profession, the tools we're using are incredibly varied – with some companies still relying on paper records while others use convoluted spreadsheets (I’ve been there!). 

In other cases, HR teams are stuck using software which they've outgrown as a business or isn’t fit for purpose, causing more pain and lost time, rather than helping drive efficiencies.

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The impact of these HR challenges

What are the ‘time-sinks’ faced by HR professionals? Often slow, manual processes. 

A lack of good systems results in excessive manual intervention, like cross-checking employee records to ensure there are no data errors or helping people sign up for their benefits, which takes time away from more people-focused work, such as:

• Speaking with staff about issues and challenges
• Wellbeing and engagement initiatives
• Staff training
• Management development
• Future planning

It’s so important that new starters are put on the system correctly and paid on time, especially if you consider they may not have been paid for a few weeks and you want to kickstart their experience in the most positive way.

Another downside of these manual processes is an increased risk of errors, especially around payroll.

Inaccurate data entry can lead to wages being incorrectly paid– a worst-case scenario for all payroll professionals.

Human errors also increase if there’s a lack of proper procedure around handling pay modifiers such as overtime, or quite simply, there’s been inadequate training on systems and processes.

Maybe a one-off error will be forgivable, but getting payday regularly wrong is sure to result in significant trust damage and often leads to the loss of top talent as they look for new employers that get it right first time.  

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How to use HR software to tackle these issues

There are many areas where modern HR software can help HR professionals directly target the above issues.

System integration: There is a fundamental need for HR teams to work together better, with other areas, such as Payroll and Finance. Connected systems eliminate the need for duplication and manual intervention as the data in your HR software are automatically reflected in your other systems.  

Self-service: Using the power of the cloud, mobile apps and web portals, via a digital self-service portal, employees can manage a wide array of basic tasks themselves, without having to involve managers. Tasks employees can typically manage via self-service include document management, leave requests and Learning & Development (L&D).

Automation: Process automation within modern HR software takes care of repetitive, time-consuming tasks, like onboarding workflows and annual leave management, so you can focus on more strategic work and better support your people. 

Reporting: Simplified and automated reporting takes the pain out of regular reporting – whether it’s the monthly board pack, regular performance monitoring or one-off analysis, having immediate access to up-to-date reports at your fingertips is a game-changer.

On-demand webinar: The Connected Workplace

I have the pleasure of speaking on a recent webinar which examines how a fully connected HR and payroll system can relieve pressure, rebalance workloads, and create a more efficient, empowered HR and Payroll function.

We’ve brought in Claire Dawes, Payroll Administrator at The Federation of Jewish Services, for an insightful discussion on how the right technology can lighten the load, reduce frustration and help professionals reclaim their time.

You can learn more about the webinar here.

If you’re feeling the strain of outdated processes and increasing demands, be sure to tune in! You won’t want to miss this opportunity to explore solutions that will improve efficiency, accuracy, and wellbeing.