Finch, the end-to-end data connectivity platform for HR, payroll, and benefits, announced findings from its 2025 Payroll Connectivity Report. The survey of 1,000 employers found that integration capabilities were the most influential factor in employers’ HR and benefits software purchasing decisions, outweighing even pricing.

“The technology we’re building at Finch will serve as the foundation of a more connected, efficient, scalable future for the employment sector.”

One in 8 employers in the study reported spending 4 hours or more on manual data entry each week, contributing to the more than $8B employers spend on operating costs annually. This underscores the massive inefficiencies and barriers to scalability that are driving the industry’s need for more integrated technology solutions.

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Other insights from the study include:

• Employers rated integration capabilities as the most influential factor in their HR software purchasing decisions, followed closely by pricing and ease of onboarding.
• Only 41% of employers reported being “very satisfied” with the current state of connectivity between their technology systems.
• More than half (52%) of employers surveyed reported finding inaccuracies in their employee data at least once per week, and nearly one quarter (22%) reported finding errors at least once per day.
• Despite growing demand for connectivity between their software systems, just 68% of employers reported using integrations to share sensitive payroll data with internal systems or external benefits providers.

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The study’s findings demonstrate that there is still a significant need for greater connectivity in the technologies that power the employment sector.

“The results of this study demonstrate the inefficiencies that are still plaguing the employment industry, even as technology has continued to evolve. Individual integrations aren’t enough. The industry needs a standardized technology infrastructure to deliver the connected experiences employers demand,” said Jeremy Zhang, Finch cofounder and CEO. “The technology we’re building at Finch will serve as the foundation of a more connected, efficient, scalable future for the employment sector.”

The complete findings from the survey can be found in Finch’s 2025 State of Payroll Connectivity Report, Why Integrations Drive Workplace Benefits Purchase Decisions.

Methodology

Finch commissioned Atomik Research to conduct an online survey of 1,000 executives and HR leaders from companies with 5–250 employees across a variety of industries. An initial survey was conducted between October 17, 2024 and October 24, 2024. A supplemental survey was conducted between January 4, 2025 and January 8, 2025. To qualify for the survey, employers had to be employed full-time and hold a decision-making role within their organization in regard to employee benefits and HR tools.

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Source: Businesswire