For small business owners, handling HR in-house can seem like the most natural and cost-effective choice. I get it. Even from the early days of my career in helping build Xerox’s outsourcing service, I saw firsthand how businesses clung to traditional approaches, even when it wasn’t serving them best. But here’s the reality: as small businesses grow, HR becomes increasingly complex, time-consuming, and frankly, a minefield of potential risks!
All too often, a simple misstep by a business owner or employee brings an unwanted surprise, exposing the business to serious liability that can be costly and time-consuming. And despite many clear advantages of outsourcing HR, small business owners can have reservations. I think I’ve heard them all.
In this article, I’ll address some of the most common objections to outsourcing HR and explain how a specialized HR firm like Focus HR addresses those concerns while adding real value to your business.
This isn’t just theory; it’s based on my experience working with hundreds of small businesses, from startups to established players.
“I have a limited budget for HR and can’t afford outsourcing.”
Think handling HR in-house is saving you money? Think again. The hidden costs of inefficiency and compliance risks can be substantial. A study found that 70% of small businesses—1.5 million companies—tackle HR on an ad-hoc basis, resulting in an average of $18,800 in lost productivity annually. Nationally, that’s a staggering $27 billion drain on small businesses.
Outsourcing transforms that expense into a strategic investment, ensuring HR expertise while freeing you to focus on what you do best.
“I’m worried about losing control over HR functions.”
That’s a valid concern. But when you think about it, how much control do you really have over in-house HR staff that you depend on for payroll or other critical HR operations? I’ve heard numerous stories over the years where HR/Payroll staff suddenly got sick or critically ill (with payroll due); decided to share confidential information (undermining the business owner and creating a liability issue), or where the HR staff member simply left the business unexpectedly (leaving the owner scrambling to handle things). These occurrences happen more than you might think.
Also consider this: you wouldn’t try to build a house entirely on your own, right? You’d hire electricians, plumbers, and contractors – experts in their fields. Outsourcing HR is similar. You’re still the architect, setting the overall design, but you’re bringing in specialists to handle the intricate details, ensuring everything is up to code and running smoothly, freeing you to focus on the big picture.
The truth is, our clients often feel like they gain more control—not less—when they outsource HR. Why? Because they’re no longer flying blind. Instead, they have a team of experts who help them see around corners to steer clear of costly mistakes, all the while freeing them from tedious HR tasks.
But here’s the real game-changer: flexibility. Managing HR in-house or locking into long-term contracts can feel like trying to steer a ship with an anchor down. It’s tough to pivot when your business needs to change. Letting an employee go is never easy, and being locked into rigid agreements can make it even harder. With outsourced HR, you get the freedom to adapt, scale, and adjust without unnecessary baggage. Business moves fast—your HR strategy should, too.
“I prefer the personal touch of handling HR in-house.”
I understand. That personal connection is vital. A reputable HR partner understands this as well. At Focus HR, we assign each client a dedicated HR manager who acts as an extension of your team, ensuring your unique needs are met. They become your point of contact, building a relationship with you and your employees. Also consider the flip side of the “personal touch.” In-house HR staff can often develop “chummy” relationships and more easily side with employees, losing their objectivity and ability to truly represent the best interests of the business and its owner.
“My bookkeeper/accountant handles all of that.”
This is a common scenario. While some aspects of HR, like payroll, might overlap with accounting, they are distinct disciplines. A good accountant is an expert in finance, but that doesn’t necessarily make them an HR specialist. HR encompasses a much broader range of issues, including compliance with ever-changing employment laws, benefits administration, employee relations, and risk management. Relying solely on your accountant for HR can leave gaps in crucial areas and expose your business to potential liabilities.
Think of it this way: you wouldn’t ask your family doctor to perform heart surgery, even though they’re both medical professionals. The same principle applies to accounting and HR.
“An outsourced firm won’t understand my company culture.”
This is a common concern, and it’s one we take very seriously at Focus HR. A strong HR outsourcing provider, like us, takes the time to truly understand your business’s values and culture. We work closely with clients to align HR strategies with their organizational mission, ensuring seamless integration. It’s not a one-size-fits-all approach.
Plus, we’re local and really become an available part of your team. We’re not a big box provider that’s going to put you on hold or place you in a ticketing system; we’re present, accessible, and invested in your success.
“I don’t want to commit to a long-term contract.”
Flexibility is important for any small business. That’s why we offer customizable HR solutions without any rigid, long-term contracts. We have to earn our keep every 30 days. We want to earn your trust, not lock you into something that might not work for you down the road.
“I need HR solutions that can adapt to my changing needs.”
Our HR outsourcing services are scalable, meaning they can evolve as your business grows and your HR needs shift. We can scale up or down as needed, ensuring you always have the right level of support. That’s a far more difficult task when handling HR in-house.
“I think I can handle HR myself; I don’t need to outsource.”
I hear you. But think about it: You’re a master craftsman, but you’re spending half your time sharpening your tools instead of building. HR is important, but it’s often not the core of your business. 45% of small business owners admit they lose a full day (or more!) every week to HR admin. Is that really the best use of your time and resources? Outsourcing is like hiring someone to sharpen those tools for you, so you can get back to what you do best: building your business!
“I’m hesitant to try something new and unfamiliar.”
For sure. Change can be very daunting. However, not evolving your HR structure to better serve you and your employees can inhibit your growth and expose you to unnecessary risk. The great news is that outsourcing HR is a proven approach for gaining efficiency and ensuring compliance. Our clients frequently tell us they wish they had made the switch sooner. We aim to make the transition as smooth as possible.
“I already have someone in-house who handles HR.”
That’s great! But let me ask you: Is that person a dedicated HR professional, or is HR just one of many hats they wear? Often, HR falls to office managers or finance staff who, while valuable members of your team, may lack specialized HR training. It’s like asking your accountant to rewire your office – they could probably do it, but is it the best use of their skills, and are you sure you won’t end up with a blown fuse? Outsourcing lets your team focus on their core competencies, while ensuring HR is handled by experts, minimizing the risk of costly mistakes.
If you do have a truly dedicated HR professional, are they focused on the strategic aspects of HR (finding, developing and retaining top talent) or spending their time in the quagmire of administrative HR (payroll, compliance, benefits and 401k administration, etc.)? With salaries that strong HR professionals command these days, is your in-house HR professional delivering the kind of strategic value you need and doing the kind of work they’re passionate about?
“I’m worried about the hassle of transitioning to an outsourced provider.”
I definitely get that. Change can feel overwhelming, and we hear this a lot. Often, people’s past experiences with switching providers have been frustrating – an onerous and convoluted conversion process, lack of communication, extensive paperwork, inexperienced conversion personnel and ultimately – unmet expectations. At Focus HR, we take meticulous steps to help ensure a more seamless, friction-free transition experience. Think of it less like a complicated renovation and more like a simple software upgrade.
We’re different. We’re agile and small enough to care, but big enough to handle all your needs.
We offer personalized service, so you’re not left on hold or feeling ignored. We have a clear, step-by-step onboarding process – our “5 Quick, Easy Steps” – that guides you through the entire transition, minimizing disruption to your operations. We handle the heavy lifting, so you can focus on running your business.
We’re also a local, Tucson-based business, so we can be there for you when you really need us. We’re here to make the switch a breeze, not a burden.
Learn more about how we make the switch a breeze >
“My employees might not like the idea of outsourcing HR.”
This is understandable. Change can be unsettling. However, employees often appreciate a more professional HR experience. They provide a robust and easy to navigate platform, making it easier for them to access information, request time off and manage their benefits. Payroll is streamlined, leading to more accurate and timely payments. They always get a friendly welcome when they drop by or call our office. Overall, we focus on creating a positive employee experience, ensuring fair policies, and providing resources for their development. We communicate these benefits clearly, so employees see outsourcing as a positive change, not a threat.
“I don’t know if I can trust an external firm with my HR needs.”
Trust is certainly critical in a relationship, especially when it comes to something as sensitive as HR. It’s not something we expect you to give us overnight; it’s something we earn. In business for 21 years, Focus HR has built a strong reputation for helping small businesses like yours successfully navigate the complexities of HR. We encourage you to explore our case studies and testimonials. We believe our track record speaks for itself. We’re confident that once you see the results we’ve delivered for other businesses like yours, you’ll feel more comfortable entrusting us with your HR needs.
“I had a bad experience with outsourcing in the past.”
I’m sorry to hear that, but not surprised. It’s a story I’ve heard repeated too many times. All too often those bad experiences come from dealing with big-box payroll providers. At Focus HR, we believe in personalized service. We get to know your business inside and out. We assign you a dedicated HR manager who becomes a true partner, someone you can call directly with questions or concerns. We tailor our solutions to your specific needs, whether it’s payroll, benefits, or compliance. It’s not a one-size-fits-all approach; it’s about building a relationship and providing the support you need, locally, right here in Arizona.
Ready to Explore the Benefits of Outsourcing HR?
If you’ve had any of these objections, I understand your concerns—but I also know that the right HR partner can help your business thrive.
Download our free guide, Mitigate Risk and Unlock Growth: A Small Business Guide to HR Outsourcing, to learn more about how outsourcing HR can work for your business.
