Knowing When to Outsource Your HR Functions

Knowing When to Outsource Your HR Functions

Outsource Your HR Functions

The never ending pile of HR paperwork on your workstation only raises one question: will there ever be a better, cheaper way to get all of this done? A lot of HR professionals are stuck wondering at this, while a few have taken a giant leap towards HR outsourcing. In fact, it has proved to work for a lot of companies. Did you know that in a Conference Board study, around 51 percent of HR managers said that they achieved all objectives when they tried the outsourcing way, while the other 49 percent were actually unhappy with outsourcing arrangements. Want to know that major difference between these two groups? The Conference Board study underlined the differences which have been shown below: Outsourcing that yielded low satisfactory results were training and development, recruiting as well as employee communication. So why are these three good for outsourcing to a vendor? A lot of outsourcing partners face difficulty understanding the company culture which leads to unsatisfactory results.

Here’s what you need to do when deciding on whether to outsource the HR functions or not – you need to focus on the bottom line. Outsource functions that require a lot of paperwork, but little cognitive involvement. Time-consuming task is often a waste of HR talent. Companies that yielded highly satisfactory results and were able to save money involved outsourcing partners in the following tasks: Administration, Retirement plans, i.e. 401 (k), Pension and health benefits management. Now suppose, you have decided onto outsourcing transaction-heavy tasks, how are you going to determine which ones will be outsourced and how many of them? Companies that successfully outsourced started with one key function given to the vendor, and then moving on to the next once it was successfully accomplished providing satisfactory results.

HR Outsourcing Tips:

A lot of vendors out there will offer you packages at less prices to lure you into using many of their services. Instead, take some time to decide which functions will be outsourced, how and at what phase the next one will be given to the vendor. If things don’t work out, you’ll know why and how you can improve them gradually. Secondly, a lot of vendors will offer you a price based HR services for a certain number of employees. Ask them whether they’re willing to cut the price if you decide to go a little below that number.

Jay Raol

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