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Common Objections for HR Outsourcing

Mar 30 2016, by PEOPLE in Sales

Agents know how absolutely beneficial HR outsourcing can be for most business owners, no matter what the business is. Unfortunately, business owners and employers don’t always know this and they can even be skeptical at first. But it’s your goal as an agent to give them the information they need and address their concerns. Here are some common objections for HR outsourcing that you’ll run into, or have already run into, and some ideas for addressing them.

The first and most common objection from clients is “My company is too small to need HR outsourcing.” To be honest, it makes sense that business owners and employers tend to think this way. If you don’t have many employees or a ton of customers, why would you need to outsource anything? But agents know that small businesses need help with HR problems just as much as the big guys. This is especially true for small businesses that are growing or want to grow. A good way for agents to approach this is to bring up whether or not your potential client really should be spending all this money to hire an internal staff to handle the many, many HR related aspects of being an employer. In many cases, HR outsourcing is a much more financially viable option for small businesses but still has the power and experience to deal with payroll, employee benefits, workplace safety, and laws and regulations.

Another very common objection for HR outsourcing sounds something like “The way we take care of HR functions works just fine for us.” Agents should understand going in that their potential clients likely won’t be super excited about a proposed change. Not many people, business owners, employers, or otherwise necessarily like change. But remind your clients that sticking to old methods when there are new, more efficient, and more cost effective methods out there goes against the very concept of business itself. Consider posing the situation like so…if your client isn’t a lawyer, then they would hire an attorney for help with legal matters. Since they’re also likely not an HR expert, why wouldn’t it make sense to choose someone who is?

You have also probably heard “HR outsourcing means I lose control of my business” many times. Naturally, business owners and employers feel very protective of their company. But this often means that they think keeping all HR functions within the company is the better choice. They don’t want to feel like they’re giving up control of their business if they outsource HR. If a potential client comes at you with this objection, make sure that they know that the HR outsourcing provider is there to assist, not to take over. In fact, businesses that do outsource HR have the same amount of control as they always did. The difference is that they’re not caught up in the stress of keeping track of all the various HR functions on top of running the business.

Tackle each objection one by one by logically explaining the benefits of HR outsourcing, and your client will quickly see that they have nothing to fear.