When you're running a small business, you don’t have time to study every contract with a magnifying glass. That’s exactly what some HR companies rely on.
We’ve spoken to too many businesses who’ve been locked into contracts they didn’t fully understand, paying for HR services that didn’t meet their needs, with no easy way out. So, let’s shine a light on what’s really going on behind some of those glossy HR sales pitches.
1. The Fine Print Trap
It’s easy to be swayed by a friendly voice and a good-looking offer, but always (ALWAYS!) read the fine print. Some contracts contain unexpected charges, rigid terms, or cancellation penalties you don’t spot until it’s too late.
A tip, if the paperwork is full of jargon or dodges your questions, take that as a red flag. A good HR provider will make things clear and transparent from the start.
2. The “Forget Clause” (AKA Auto-Renewals)
One of the most common complaints we hear? Businesses stuck in a contract because they didn’t cancel it in time. Many providers include a clause that automatically renews your contract unless you give notice months in advance (sometimes as much as six), usually quietly hidden in the T&Cs.
So, as soon as you sign anything, pop a reminder in your calendar, just in case there’s a sneaky auto-renewal clause buried in the fine print. That way, you won’t be caught off guard later.
3. Avoid Long-Term Lock-Ins
Small businesses change quickly. Team structures, goals, even the type of support you need can look very different a year from now. That’s why being tied into a 2- or 3-year HR contract can become more of a burden than a benefit.
We believe the sweet spot is a 12-month plan. It's enough time to make real progress, without boxing you in.
If a provider is pushing for anything longer, ask why. And if you’re not 100% confident it aligns with your long-term goals, walk away. Flexibility really does matter.
4. Supplier or Partner?
Here’s the difference: a supplier gives you a product or service and moves on. A partner works with you, understands your business, and adapts as your team grows.
Ask yourself, are they listening to what I need, or just selling me an “off the shelf” pre-packaged solution?
5. Work With People Who Work Ethically
Ethical HR support means fair terms, clear pricing, and honest communication. It means being treated with respect, not boxed into a contract you regret. They should:
- Keep contracts flexible and straightforward
- Automatic renewals are clear and communicated
- Explain every clause before you sign
- Only offer what your business actually needs
- Because HR should help you and your people grow, not hold you back!
Your HR provider should protect your business, not become a problem you need protecting from. Don’t be afraid to ask questions, push for clarity, and walk away if something feels off.
Feeling unsure about your current HR provider? Or looking for honest advice before you commit to one? Let’s have a no-pressure conversation.
At Dakota Blue Consulting, we keep things ethical, simple, and tailored to you. Get in touch today and see the difference for yourself.