No one opens a restaurant or a hair salon or a bakery with dreams of keeping up with government regulations. You want to focus on your passion. You want to focus on your customers. Everything else is a distraction.  Yet these “distractions” can bring your dreams crashing down, which is why you might feel overwhelmed trying to keep up with all the aspects of your business. 

Read on to explore the top five HR pain points that are driving small businesses to outsource HR functions.


1.    Compliance with Laws and Regulations. Complying with federal mandates is getting more confusing each year. Here are some examples of penalties your business is subject to when failing to adhere to federal guidelines.  

  • The maximum penalty for failing to file Form 5500 (which must be filed annually for most ERISA plans) is $2,259 per day that the filing is late.

  • Violations of the Fair Labor Standards Act (FLSA) range from $1,151 to $127,710 depending on the offense.

  • Failure to correct a violation for which a citation has been issued under section 9(a) of the OSH Act within the period permitted for the correction results in a $14,502 penalty per day.

  • The maximum penalty for failing to provide the Summary of Benefits and Coverage (SBC) is $1,190 per failure.

  • For 401(k) plans with automatic contribution arrangements, the penalty for failure to provide the required ERISA § 514(e) preemption notice to participants is $1,788 per day.

  • Penalties for failure to meet applicable filing requirements of the Multiple Employer Welfare Arrangement (MEWA), which include annual Form M-1 filings and filings upon origination, are $1,644 per day.

  • Violating the Employee Polygraph Protection Act (EPPA) is punishable by a maximum penalty of $23,011.

This is not an all-inclusive list and does not include individual state laws, with which you must also comply. 

If you think, “Oh, this won’t happen to me,” you might be right. But what if you’re not? It’s not that the government is going to come looking for violations. It’s your employees who will report you. In the age of the internet, employees constantly post to huge forums like Reddit with their concerns. There are attorneys who constantly monitor these forums, eager to take on new clients. Unfortunately, not knowing the law doesn’t excuse your business from it. It’s nearly impossible to keep up with it all. That’s why having an experienced team on YOUR side is the best protection.  


2.    Inability to Hire Enough Staff. The staffing problem is plaguing small businesses across the country.  How can you compete for talent in today’s environment? How can you welcome talent pools that you might have overlooked? How can you offer something that big companies can’t? 

HR consulting experts know how to win the war for talent with more than just financial compensation. When you outsource HR for your small business, you’ll have a team on your side that includes access to hiring gurus armed with the latest data and recruiting techniques. 


3.    Expense of Hiring Your Own Internal HR team. Many small businesses know they need HR help, but a quick look at current salaries for in-house staff makes it unaffordable. 

  • HR Manager: $69,373

  • HR Director: $96,976

  • Payroll Manager: $70,184

  • Benefits Manager: $78,031

This is the old way to do HR. The way small businesses create HR “departments” in 2022 is by outsourcing. Why? Because as a small business you don’t necessarily need full-time staff. By sharing access to these highly-educated professionals with other small businesses, you get the HR team you need at a fraction of the cost.

 HR Consulting from experienced providers like Asure are proactive in monitoring and identifying changes and potential challenges. You gain protection and learn common pitfalls to avoid. 


4.    Failure to Get Peak Performance From Your Workers. Are all your workers giving you their absolute best? It’s very hard for small business owners to make their customers happy while also continuing to motivate their employees. 

 An outsourced HR team will set you up for success with your employees. You’ll witness a higher commitment and increased engagement from the folks you’re paying to help you. At Asure, our policies, programs, and advanced technology are designed to educate and inspire your employees. It’s hard to find time to set up proper training programs when you feel you’re always putting out fires. This is exactly how an outsourced HR solution helps you. Uncomfortable with giving honest performance reviews? Or perhaps your intentions aren’t being heard correctly by your workers. Lean on the expertise of experienced HR professionals while you focus on growing your business.  


5.    Turnover Costs Due to Workers Leaving. Workers leave for a multitude of reasons. Here are some of the top reasons they give: 

  • Pay not keeping up with industry standards

  • Toxic co-workers

  • Inadequate rewards and recognition for excellence

  • Lack of flexibility with scheduling / work-life balance

  • Lack of career advancement opportunities

All of these challenges can be alleviated with an outsourced HR team on your side. An outsourced HR professional can help you with:

  • Employee performance reviews

  • Recognition programs to make employees feel appreciated

  • Smart scheduling based on data that gives employees flexibility while giving you exactly the staff you need on any given day and time

Visit this page here to learn more about outsourcing your HR to Asure and their affordable HR Consulting Services. Or contact us for a personalized consultation: Asure HR Support.

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