Business Owners Say People Management Tasks Drain Productivity

Important yet time-consuming employee-related issues, such as hiring, payroll and benefits, take up about a quarter of all work time, according to 31% of the small business owners who participated in a recent survey conducted by Oasis, a Paychex® Company. And while 39% said they “spend too much time on workforce-related issues”—especially for those business owners earning less than $500,000 in revenue and who had been operating for fewer than 10 years. Some 83% said they still regard the time spent on HR and workforce issues to be a good investment.

The survey also identified that most workforce-related decisions are made by the CEO or business owner (55%), or they are delegated to the relevant supervisor or manager (41%). Being in charge of a small business comes with a lot of time-consuming people management and HR administration that can drain productivity. Administering payroll, complying with employment regulations and offering competitive health benefits are specialized skills that require time and resources. These types of nonrevenue-producing tasks can be a distraction from the work that needs to get done in acquiring customers and growing the business.

Managing people isn’t a one-size-fits-all approach. What works for one employee won’t work for another. To improve people-management skills and increase efficiencies, consider several factors, including the personalities, the type of work expected to be performed, and the goals and expectations of the business. There are also opportunities to outsource specific tasks to a third party, such as a Professional Employer Organization (PEO).

Many owners who participated in the survey said they would consider seeking assistance from an outside resource for such things as “attracting quality employees to join our business” (49%), “improving productivity and efficiency” (34%), and “employee retention and engagement” (27%).

For which of the following business challenges would you seek assistance from an outside resource?

49% Attracting quality employees to join our business
34% Improving productivity and efficiency
27% Employee retention and engagement
18% Employing the right skills to drive business growth and profit
17% Developing employees to be able to contribute at higher levels
16% Keeping employees focused on what’s most important for the business
12% Making hard decisions to let employees go if performance standards aren’t met

If you are interested in learning more about this survey and the implications for your business, download a free copy of the white paper here.

Is it time for you to talk with Oasis? We’d welcome the chance to connect with you and conduct a free, no-obligation consultation. Contact us at 866-987-0428 or visit

Professional employer organization (PEO) services are sold and provided by Oasis Outsourcing, Inc. (Oasis) and its affiliates, which are registered and licensed to sell and provide PEO services, including in Florida. Oasis FL license numbers are Oasis Outsourcing, Inc., GL42; Oasis Outsourcing Admin Group, Inc., GL237; Oasis Outsourcing V, Inc., GL54; Oasis AHR, Inc., GL156; Staff One, Inc., EL194; Staff One of Oklahoma, LLC, EL456.

New Research: How Will These Workforce Challenges Impact Your Business?

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