The Hidden Cost of HR Administration for SMBs, According to Ben Eubanks

In a recent LinkedIn post, Ben Eubanks highlights a significant, often overlooked financial drain on small and medium-sized businesses (SMBs): the time leaders spend on HR administration. Eubanks points out that many business leaders are unaware of the true cost associated with these tasks, which detracts from core business growth.

As Ben Eubanks notes:

“Spoiler alert: 53% of SMB leaders say their time spent on HR administration costs them $50,000+.”

This statistic underscores a critical issue facing many SMBs. Eubanks elaborates on this disconnect, suggesting that while revenue, expenses, and profits are closely monitored, the financial impact of diverting leadership attention to HR matters remains largely unquantified for many.

The Opportunity Cost of HR Administration

Ben Eubanks argues that the primary cost isn’t just the salary of the person performing HR tasks, but the lost opportunity for that leader to focus on strategic initiatives. Every moment spent on HR administration is a moment not spent on driving sales, innovating products, or improving operational efficiency.

According to Eubanks:

“Sure, they can tell you about revenue, expenses, and profits, but there’s a hidden cost that many of them overlook.”

This hidden cost, as Eubanks frames it, is the opportunity cost. When a business leader steps away from their core responsibilities to handle HR issues, the business’s forward momentum is inevitably slowed. This can manifest in missed market opportunities, delayed product development, or less effective customer engagement.

Quantifying the Drain

Eubanks emphasizes the need to quantify this hidden cost. He points to upcoming research, developed in partnership with Insperity, aimed at putting a dollar figure on the time business leaders spend on HR administration. This research, he suggests, will provide crucial insights for SMBs looking to optimize their operations and financial performance.

Ben Eubanks is set to discuss these findings in an upcoming webinar. He will be joined by Insperity subject matter experts Erin Lau and Chris Kane, CBPA, along with Errol Gorman, CEO of Ginisis Group. This collaborative effort aims to provide a multi-faceted perspective on the financial implications of HR administration for SMB leaders.

As Eubanks highlights the value of this discussion:

“We’re sharing some brand new research produced in partnership with Insperity at this upcoming webinar to quantify how much business leaders are costing the organization when they deal with HR admin work.”

The implication is clear: understanding and mitigating the time drain from HR administration can unlock significant financial benefits for SMBs. Eubanks’s insights serve as a call to action for leaders to re-evaluate how their time is allocated and to consider more efficient solutions for managing HR functions.

In Eubanks’s view, this is not just about efficiency; it’s about strategic financial management. By recognizing and addressing the hidden costs of HR administration, SMB leaders can free up valuable time and resources, ultimately driving greater business success.