What is productivity over payrolls investing?

Productivity over payrolls refers to companies prioritising efficiency tools and automation over hiring new employees. This investment strategy focuses on businesses that help other companies enhance output from existing workers through software solutions, rather than expanding headcount. It's a structural shift toward making teams more effective rather than larger.

What is enterprise software?

Enterprise software consists of business applications designed for organisations rather than individual consumers. These include customer relationship management systems, human resources platforms, project coordination tools, and process automation solutions. Modern enterprise software typically operates on subscription models and becomes deeply integrated into company workflows.

Why are automation stocks performing well?

Automation stocks benefit from companies choosing efficiency investments over new hires. Private sector layoffs hit 50-year lows whilst businesses pour money into productivity-enhancing technology. This creates sustained demand for automation solutions as firms seek immediate productivity gains without expanding headcount, making these investments defensive and growth-oriented.

Best automation and software stocks to buy?

Leading automation and software opportunities include Microsoft Corporation (MSFT) with Office 365 and Teams, Alphabet Inc. (GOOGL) through Google Cloud and Workspace, and Amazon.com Inc. (AMZN) via AWS infrastructure. These companies provide essential business tools that enhance productivity whilst reducing reliance on additional staff hiring.

Are software stocks risky investments?

Software stocks carry standard investment risks including potential margin pressure from competition, economic downturns affecting technology budgets, and regulatory compliance costs. However, enterprise software often proves defensive as companies need efficiency tools regardless of economic conditions. The subscription model and high switching costs provide some protection.

How much money needed to invest in automation stocks?

Through fractional shares on platforms like Nemo, you can invest in automation and software stocks starting from just £1. This accessibility allows beginners to build diversified exposure to leading companies like Microsoft, Alphabet, and Amazon without needing thousands of pounds for full shares.

Should I invest in software stocks during recession?

Software stocks can be defensive during economic pressure as companies prioritise efficiency over expansion. Businesses often accelerate automation adoption during tough times to reduce costs and maintain competitiveness. However, severe financial stress could lead some companies to delay technology investments or renegotiate contracts.

Why are companies not hiring but unemployment rising?

The labour market paradox shows private sector layoffs at 50-year lows whilst overall unemployment rises due to federal government job cuts. Private companies are keeping existing staff and investing in productivity tools instead of hiring. This creates compelling opportunities in automation and software stocks positioned to benefit.

What drives enterprise software demand?

Enterprise software demand is driven by companies needing to enhance productivity from existing workers rather than hiring. Remote work acceleration, skills shortages, demographic shifts, and global competition pressure firms to leverage technology for operational efficiency. The shift creates sustained demand for business automation and collaboration tools.

How to invest in automation theme on Nemo?

The Automation & Software Investment Theme Overview is available on Nemo, the ADGM-regulated platform offering commission-free investing and fractional shares from £1. The platform provides AI-driven research and professional-grade tools to help investors access this productivity-focused investment theme with regulatory protection.

Software and Automation: The Smart Money's Playing the Efficiency Game

• 6 min read

• Published on 2 January 2026

Hey! We are Nemo.

Nemo, short for Never Miss Out, is a mobile investment platform that delivers curated, data-driven investment ideas to your fingertips. It offers commission-free trading across stocks, ETFs, crypto, and CFDs, along with AI-powered tools, real-time market alerts, and themed stock collections called Nemes.

Download the App

Scan the QR code to download the Nemo app and start investing on Nemo today

Invest Today on Nemo

Software and Automation: The Smart Money's Playing the Efficiency Game

• 6 min read

• Published on 2 January 2026

Summary

Businesses are choosing efficiency software over new hires, creating a durable investment opportunity.
Surging enterprise software demand is driven by the corporate need to boost productivity.
Leading software companies benefit from recurring revenue and high customer switching costs.
Long-term growth is supported by AI integration and the shift to remote work models.

Zero commission trading

View the full Basket:Automation & Software Investment Theme Overview

17 Handpicked stocks

Why Clever Companies Are Buying Software, Not Staff

Have you had a look at the labour market figures recently? It’s a proper mess. On one hand, you hear about rising unemployment. On the other, private companies are holding onto their staff like grim death. It’s the sort of contradiction that makes you think the statisticians have been at the sherry. But I don’t think they have. To me, it looks less like a muddle and more like a strategy, one that clever investors might want to pay close attention to.

View the full Basket:Automation & Software Investment Theme Overview

17 Handpicked stocks

The Real Story Behind the Numbers

Let's cut through the noise. While government layoffs might be pushing the headline numbers up, the private sector is playing a completely different game. Businesses aren't rushing to hire more people. Instead, they are doubling down on the ones they already have, and they’re spending a fortune on tools to make them more productive. It’s a fundamental shift in thinking. The old playbook, throwing more bodies at a problem, has been tossed in the bin. The new one is all about making each person more effective, more efficient, and ultimately, more profitable.

Private sector jobless claims are bumping along at lows we haven't seen in half a century. Why? Because good people are hard to find, and training them is a costly faff. It's far easier, and frankly more sensible, to invest in technology that amplifies their abilities. We’re talking about a structural change, not a temporary blip caused by a bit of economic weather.

View the full Basket:Automation & Software Investment Theme Overview

17 Handpicked stocks

A Bet on Brains, Not Brawn

This is where it gets interesting for your portfolio. This pivot towards efficiency is creating a powerful tailwind for certain types of companies. Think about the big players. Microsoft isn't just selling spreadsheets anymore. It’s providing the essential digital plumbing, from cloud services to collaboration platforms, that allows a team of ten to do the work of twenty. The same goes for Alphabet, whose cloud and AI tools are becoming indispensable for businesses trying to get an edge without expanding their payroll.

View the full Basket:Automation & Software Investment Theme Overview

17 Handpicked stocks

View the full Basket:Automation & Software Investment Theme Overview

17 Handpicked stocks

View the full Basket:Automation & Software Investment Theme Overview

17 Handpicked stocks

View the full Basket:Automation & Software Investment Theme Overview

17 Handpicked stocks

View the full Basket:Automation & Software Investment Theme Overview

17 Handpicked stocks

View the full Basket:Automation & Software Investment Theme Overview

17 Handpicked stocks

Hey! We are Nemo.

Download the App

Scan the QR code to download the Nemo app and start investing on Nemo today

Invest Today on Nemo

Software and Automation: The Smart Money's Playing the Efficiency Game

Software and Automation: The Smart Money's Playing the Efficiency Game

Summary

Why Clever Companies Are Buying Software, Not Staff

The Real Story Behind the Numbers

A Bet on Brains, Not Brawn

Summary

Why Clever Companies Are Buying Software, Not Staff

The Real Story Behind the Numbers

A Bet on Brains, Not Brawn

The All-Consuming Power of Software

Deep Dive

Market & Opportunity

Key Companies

Primary Risk Factors

Growth Catalysts

How to invest in this opportunity

Frequently Asked Questions

Recent insights

Boeing's F-15 Windfall: What $131 Billion Means for Defence Investors

Broadcom's $60-100bn Debt Gamble: What It Means for AI Chip Investors

Amazon's Drone Gamble: What 500 Cities Means for Investors

Samsung's 15% Foundry Price Hike: Korea's AI Chip Moment

Korea's Labour Peace Dividend: Why the Hyundai Wage Deal Matters to Your Portfolio

Recent insights

Boeing's F-15 Windfall: What $131 Billion Means for Defence Investors

Broadcom's $60-100bn Debt Gamble: What It Means for AI Chip Investors

Amazon's Drone Gamble: What 500 Cities Means for Investors

Samsung's 15% Foundry Price Hike: Korea's AI Chip Moment

Korea's Labour Peace Dividend: Why the Hyundai Wage Deal Matters to Your Portfolio

Boeing's F-15 Windfall: What $131 Billion Means for Defence Investors

Broadcom's $60-100bn Debt Gamble: What It Means for AI Chip Investors

Amazon's Drone Gamble: What 500 Cities Means for Investors

Samsung's 15% Foundry Price Hike: Korea's AI Chip Moment

Korea's Labour Peace Dividend: Why the Hyundai Wage Deal Matters to Your Portfolio

Boeing's F-15 Windfall: What $131 Billion Means for Defence Investors

Broadcom's $60-100bn Debt Gamble: What It Means for AI Chip Investors

Amazon's Drone Gamble: What 500 Cities Means for Investors

Samsung's 15% Foundry Price Hike: Korea's AI Chip Moment

Korea's Labour Peace Dividend: Why the Hyundai Wage Deal Matters to Your Portfolio