Nearly one out of two (45%) small business owners spend roughly one day a week or more on administrative human resources (HR) issues, according to a study of nearly 300 U.S. businesses conducted by Oasis, A Paychex Company, a leading Professional Employer Organization and HR solutions firm. Further, 35% of owners and managers of businesses that have been in operation for 10 or fewer years spend six to 10 hours a week, and this goes up to 37% for businesses employing between 20 to 49 people.

The study also asked business owners what they dislike about managing people. The top two dislikes of managing people in small businesses are, "employees having personal issues that can conflict with work" (41%) and managers feeling "the quality of the work is not always up to par" (23%). "Personal issues" were a greater source of aggravation at companies employing 20 people or more (54%) and with revenues between $500,000 and $999,999 (51%). Only 7% of small business owners reported they did not have any "dislikes" about managing employees.

What do you dislike most about managing people?

"Being in charge of a small business comes with a lot of paperwork that can be a distraction from the work that needs to get done in growing the business," said Dolores Calicchio, EVP/CHRO at Oasis. "Administering payroll, complying with local, state and federal regulations, and offering competitive compensation and benefits are specialized skills that require time and resources—assets that most owners find to be in short supply."

"As the survey results indicate, managing people involves complicated administration," Calicchio said. "Yet it's these very same assets—the people in the organization—that create unique customer experiences and an engaging culture where employees want to show up and do their best. Completing the necessary workforce-related administration is mandatory, but who manages it can be optional. This is where Oasis can step in as an outsourced HR administration partner for small businesses."