TriNet, a leading cloud-based provider of HR services, today announced results of its Small Business Confidence Survey. The survey explores the opinions of U.S. small business owners with respect to issues such as their outlook on the state of their companies and on federal and state legislation. According to the survey, conducted by Harris Poll on behalf of TriNet, 81%[1] of respondents reported that they, as business owners, primarily handle core HR functions at their company. Only 2%[2] rely on outsourced HR consultants and firms.

In connection with the fact that only 2% of business owners outsource HR matters, the survey also found that:

• 23%[3] of business owners lost staff to a competitor because they couldn't match their benefits and/or compensation. Similarly, 22%[4] were not able to hire quality talent because they couldn't match their competitors' benefits and/or compensation.
• About a third (34%)[5] of small business owners reported payroll errors, including: late disbursement of checks/direct deposit (13%)[6]; faulty record keeping (12%)[7]; withholding an incorrect amount for taxes (8%)[8]; overpayment of employees (8%)[9]; underpayment of employees (5%)[10].
• 15%[11] of respondents said their company lost money because of inadequately tracking expenses, while the same percentage reported their staff had expensed items they shouldn't have.
• Subsequently, 30%[12] agreed that they are nervous about managing HR issues for their business.

A large percentage of small business owners are processing payroll themselves, meaning they are still spending their own people hours. According to the 2014 Small Business Taxation Survey[13] from The National Small Business Association (NSBA), some entrepreneurs spend the equivalent of 3 weeks a year dealing with payroll taxes. Eleven percent of those surveyed spend over 10 hours every month working on payroll taxes, while 43% spend between 3 and 10 hours a month. Additionally, when payroll mistakes occur, business owners might have an issue with the IRS and be forced to seek financial or legal restitution.

Supporting Quotes 

Burton Goldfield, President and CEO, TriNet:

"HR regulations are changing much more rapidly than they did in the past. This means it's harder to stay on top of the latest rules and easier to make mistakes that can cost a company financially and legally. Even when business owners have dedicated internal HR staff, it can be hard for them to take care of the day-to-day needs of employees while also keeping on top of the latest regulations. That's why it's our goal to help business owners manage HR matters, so their time can be freed to focus on building their businesses."