Investing money in new technology and IT systems can help small to medium-sized enterprises (SME) improve production, according to a new study.

Smaller companies tend to reach a point with their HR processes where they realise that in order to enable expansion they will have to invest in the technology they are using, claims a business consultancy expert.

Riana Barnard from Arinso told Personnel Today that companies arrive at a "tipping point", where they must consider new operational systems and establish more formal procedures for personnel activities.

Meanwhile, the business controller at Manchester-based Authentic Foods Company said the firm decided to put capital into setting up a new payroll and HR system in order to run its manufacturing output more effectively.

However, Parminder Basran also noted that growing companies need to maintain good relations with staff: "We continue to create a caring and respectful environment where employees are supported in their career development goals, regardless of how big the company becomes."

In related news, the manager of business strategy at Northgate HR claimed that many companies have still not fully integrated their personnel and payroll activities despite innovations in IT services which consolidate HR and payment software.