Service-based businesses face recruitment, selection, and retention challenges.
This article takes a deeper dive into the challenges of hiring and managing team members, particularly administrative staff, and offers practical strategies to help small business owners overcome them. While examples from home care agencies illustrate the stakes, the insights apply across all service-based industries — from plumbing contractors to digital marketing firms.
Why Administrative Staff Matter More Than You Think
Owners often focus heavily on hiring client-facing roles, such as caregivers in home care, technicians in HVAC companies, or stylists in salons. Yet it’s the administrative team that keeps the business moving forward. They manage scheduling, handle client inquiries, process compliance paperwork, and keep the books. When administrative support falters, the entire business feels the impact.
For example, in a home care agency, the scheduler may be the most critical administrative role. They coordinate dozens of caregivers, align them with client needs, and respond to last-minute call-outs. A single error can leave a client without care, triggering not just inconvenience but potential safety risks. Similarly, in a plumbing business, an unorganized dispatcher can cause technicians to waste hours crisscrossing town, leading to frustrated customers and lost revenue.
The challenge for small business owners is twofold: hiring the right people and then managing them effectively in a way that supports growth without overburdening the budget.
Common Challenges in Hiring and Managing Administrative Teams
1. Attracting Qualified Candidates
- Limited brand recognition: Small businesses often lose candidates to larger companies with stronger reputations and deeper pockets.
- Broad job descriptions: Vague postings like “office administrator” may attract the wrong pool of candidates. A home care agency needs a scheduler with high-stress tolerance; a digital agency may need a project coordinator who thrives on deadlines.
- Recruiting costs: Paid job boards and ads add up quickly, yet results aren’t guaranteed.
Example: A boutique law firm might advertise for an “administrative assistant” but really needs someone skilled in legal document preparation. Without clarity, the firm risks wasting time on interviews with unqualified applicants.
2. Screening and Selection
- Limited HR expertise: Small owners may not know how to evaluate candidates beyond the résumé.
- Time drain: Reviewing applications and conducting interviews steals time from revenue-generating work.
- Risk of bad hires: When desperate, owners often “settle,” leading to mismatches that hurt long-term stability.
Example: A wellness clinic hires a receptionist based on personality alone, only to discover the person struggles with insurance paperwork, causing billing errors and cash flow delays.
3. Onboarding and Training
- No standardized program: Training is often done “on the fly,” leaving gaps in knowledge.
- Technology learning curve: New hires may face multiple systems — CRMs, payroll tools, compliance platforms — with little guidance.
- Owner dependence: Too often, the business owner becomes the default trainer, pulling them further away from growth activities.
Example: A marketing firm hires a project coordinator but offers no written SOPs. Each task requires handholding from the owner, preventing both from working efficiently.
4. Managing Performance
- Vague expectations: Without clear KPIs, it’s hard to measure productivity for roles like schedulers or intake coordinators.
- Conflict management: Admin staff often mediate between clients, field employees, and ownership, making their job emotionally taxing.
- Accountability struggles: Owners sometimes avoid difficult conversations, allowing underperformance to persist.
Example: In a salon, the front desk coordinator is responsible for upselling products, but without clear goals or tracking, the opportunity for added revenue is lost.
5. Retention and Turnover
- Few career paths: Small businesses often lack advancement opportunities.
- Burnout risk: Admin roles carry heavy emotional labor, especially in service businesses that deal with clients in crisis.
- Compensation limits: Budgets may not stretch to match competitor pay or benefits.
Example: In a veterinary clinic, the receptionist handles emotional pet owners daily. Without recognition or support, turnover is high, forcing the clinic into a costly cycle of recruiting and retraining.
6. Legal and Compliance Risks
- Payroll and tax errors: Even small mistakes in overtime or classification can lead to fines.
- Documentation gaps: Missing paperwork in regulated industries, like home care or finance, can put licenses at risk.
- Employee misclassification: Confusing contractors with W-2 employees creates legal exposure.
7. Building a Positive Culture
- Small team dynamics: With just a handful of people, one negative voice can poison morale.
- Leadership style issues: Owners who micromanage create stress; those who disengage breed inconsistency.
- Recognition gaps: Admin staff rarely receive the praise given to client-facing employees.
8. Scaling the Team
- When to hire: Owners struggle to know when the workload truly justifies another admin.
- Delegation issues: Owners often hold onto tasks far too long, slowing business growth.
- Cost-benefit uncertainty: It’s hard to measure whether hiring another administrator will yield a return on investment.
Example: A small IT services firm hesitates to hire a dispatcher. As a result, highly paid technicians spend hours managing their own schedules instead of billing client hours.
Strategies for Overcoming These Challenges
Attracting Qualified Candidates
- Write clear, detailed job descriptions that outline daily tasks.
- Emphasize mission and culture to appeal to value-driven candidates.
- Use industry-specific job boards (e.g., myCNAjobs for home care, legal job boards for law firms).
- Promote non-salary perks such as flexible schedules and professional development.
- Build an employer brand with staff testimonials and social media highlights.
Screening and Selection
- Use structured interview questions focused on behavior and problem-solving.
- Include skills tests or short trial projects.
- Look for values alignment, not just technical ability.
- Consider “working interviews” — a paid half-day trial.
- Involve other staff in the hiring process for cultural perspective.
Onboarding and Training
- Create training checklists for consistency.
- Document workflows in Google Drive or SOP manuals.
- Assign peer mentors to new hires.
- Use online microlearning modules for compliance-heavy roles.
- Train one person thoroughly, then empower them to train the next.
Managing Performance
- Set measurable KPIs (e.g., average call response time, scheduling accuracy, upsell percentages).
- Hold weekly check-ins to review goals and obstacles.
- Use simple dashboards or spreadsheets to track progress.
- Provide balanced feedback, mixing accountability with empathy.
- Encourage two-way feedback so staff can identify systemic issues.
Retention and Turnover
- Recognize contributions regularly, both publicly and privately.
- Create career pathways, even if modest (e.g., coordinator → senior coordinator → operations manager).
- Cross-train staff to keep work interesting and ensure coverage.
- Offer flexible scheduling or remote options to reduce burnout.
- Conduct exit interviews to learn from departures.
Legal and Compliance Risks
- Outsource HR functions such as payroll to a PEO or trusted provider.
- Subscribe to industry newsletters and HR associations to stay current.
- Conduct quarterly audits of employee records.
- Maintain signed handbooks and written policies.
Building a Positive Culture
- Share business goals openly to foster ownership.
- Encourage peer-to-peer recognition programs.
- Celebrate small wins that keep morale high.
- Create inclusive spaces where all voices are heard.
- Schedule low-cost team-building activities like potlucks or morning coffee.
Scaling the Team
- Define “hire triggers,” such as one scheduler per 30+ caregivers.
- Automate repetitive tasks before adding headcount.
- Delegate strategically by listing owner-only tasks and assigning the rest.
- Outsource non-core roles like bookkeeping or marketing before hiring full-time.
- Start with part-time or contract roles to test the waters.
The Consultant’s Perspective
For service-based businesses, administrative hires are not just “support staff” — they’re strategic assets. They allow the owner to step away from daily firefighting and focus on growth. A home care agency with a strong scheduler, a plumbing company with a reliable dispatcher, or a digital marketing firm with a skilled project coordinator can all operate more smoothly, serve more clients, and scale with confidence.
The key is to approach hiring and management with intention rather than desperation. With clear processes, recognition, and a plan for scaling, small businesses can turn their administrative teams into a true engine for growth.
Final Thought
Hiring and managing a team is never easy, especially for small businesses competing against larger employers. But with the right strategies in place, owners can overcome these challenges and build teams that support long-term stability and growth.
If you’re struggling with hiring or managing your team, step back and ask: Which of these challenges is costing me the most right now? Address that first, then build systems that will support your next stage of growth.
