The Scariest Things Prospects Can Say and How to Respond

Quick look: It’s Halloween, and while candy and costumes are fun, nothing is scarier than a prospect sending shivers down your spine with spooky concerns about HR solutions. From frightful misconceptions about outsourcing to eerie concerns about costs and control, here are some of the scariest things small and medium-sized businesses (SMBs) can say to a broker and how to respond with confidence.

Halloween is prime time for ghost stories, but for brokers, few tales are more terrifying than a prospect believing a common misconception about HR outsourcing. Whether it’s a business owner convinced they’re not a good fit for PEO or one who fears losing control, these myths can make even the most seasoned brokers tremble.

The good news? With the right responses, you can turn these frightful misunderstandings into opportunities to educate, build trust, and show the real value of a professional employer organization (PEO) partnership.

Below, explore five common doubts about the PEO model and how to respond in a way that informs and empowers clients to make the best decision for their business.

Enter at your own risk…

1. “We already have an HR person.”

Some prospects think having an in-house HR generalist or manager means they wouldn’t benefit from partnering with a PEO. However, even the most talented HR professionals can feel stretched thin trying to handle everything from payroll and compliance to benefits and employee relations, especially in a small business setting. In fact, studies show that HR staff experience higher burnout and turnover than other fields.

How to respond:

Emphasize that PEOs don’t replace HR staff, they complement and enable them to streamline workflows and work on bigger-picture initiatives. A PEO partnership frees internal HR teams to focus on people strategy instead of paperwork. While the PEO manages the administrative and regulatory details, internal staff can concentrate on truly impactful work, like recruitment, retention, and culture.

2. “We can’t afford a PEO.”

This fear is one of the most prevalent, and the most misleading.

Many SMBs assume that PEO services are expensive or out of reach. In reality, the opposite is often true: by pooling customers together, PEOs may negotiate more competitive benefits rates, and their compliance experts help companies avoid costly legal risks.

How to respond:

PEOs can actually save businesses money by preventing costly penalties and offering access to large-group benefits that SMBs may not otherwise be able to afford. Through a PEO, small businesses can provide Fortune 500-level healthcare and retirement plans, often at better rates.

Additionally, you can help clients understand that the cost of not having a PEO, in the form of HR inefficiencies, fines, or turnover, can be much higher than the monthly service fee.

3. “I don’t trust HR technology.”

As HR technology continues to evolve, some business leaders are understandably hesitant to embrace digital platforms and automation. They may fear data breaches and impersonal employee or candidate experiences.

How to respond:

You can help prospects see that modern HR technology enhances, not replaces, humans. PEOs offer secure, user-friendly platforms for payroll, benefits, and compliance management, allowing business leaders and employees to access critical information easily and safely. Additionally, by partnering with a PEO, SMBs gain access to expert-level security measures and oversight, ensuring sensitive data stays protected.

Modern recruiting technology can even cut down on unintentional bias during the hiring process, while humans remain in control of critical decisions.

4. “We’re happy with our current setup.”

Change can be scary, especially when things seem to be running satisfactorily. But inefficiencies, missed savings, or unseen compliance risks often lurk under the mask of the status quo.

How to respond:

Encourage prospects to compare their current HR processes with what’s possible through a PEO partnership. You can ask questions like:

• How much time does your team spend on HR administration each week?
• Are you confident you’re compliant with every federal, state, and local regulation?
• Do you know if your benefits package is competitive in your industry?

Once SMB leaders see the gaps, the value of a PEO becomes clearer, and they begin to understand how the partnership can transform “fine” into “fantastic.”

5. “We’ve tried outsourcing before, and it didn’t work.”

A past bad experience with another HR provider can haunt a prospect for years. But not all PEOs are alike, and the right one can turn a previous fright into a fresh start.

How to respond:

Acknowledge their past frustration and explain that PEO providers vary widely in quality, expertise, and service approach. For example, while some big-box PEOs may leave customers on hold, others, like ExtensisHR, offer boutique-style service backed by enterprise-level resources. This means clients receive dedicated HR, payroll, and benefits specialists who fully understand their business operations, rather than dealing with a call center queue.

Remind prospects that partnering with a broker and a trusted PEO means they’re not embarking on the journey alone; they’ll have a team invested in their long-term success.

Partnering with ExtensisHR is all treats and no tricks

At ExtensisHR, we believe HR shouldn’t be scary; it should be strategic, supportive, and stress-free. Our broker partners can rest assured knowing their clients are supported by a team that delivers personalized service, advanced technology, and tangible results.

This spooky season, you can help your prospects’ HR outsourcing misconceptions go poof, disappear by explaining how a trusted PEO like ExtensisHR can simplify their HR function and give them a competitive edge.

Here’s a closer look at what sets ExtensisHR apart from other PEOs:

• Boutique-level service: Our three-tiered approach to customer service included dedicated Account Managers, HR Business Partners, and Payroll Specialists, plus an added layer of employee-level support from our Employee Solution Center.
• Enterprise-level capabilities: Access to top-tier benefits, cutting-edge HR technology, and comprehensive compliance expertise.
• Complimentary recruiting: Our PEO customers receive full-cycle recruiting services at no additional cost.
• Broker-friendly philosophy: ExtensisHR is equally focused on helping your clients succeed and you grow your book of business.

Together, we can help SMBs realize their full potential, stay protected, and remain focused on growth.

ExtensisHR is here to make your clients’ HR pain points disappear for good. Learn more about our PEO solution or contact us today to discuss a partnership.