Whether your business employs two people or several hundred, outsourcing will save your company money and enhance the employee/internal client experience.
Unfortunately, however, many entrepreneurs don’t have the time to educate themselves and/or research the appropriate providers.Consequently, they are ill-informed and will delegate these details to an administrative assistant who is no more knowledgeable then his/her superiors.
By securing the services of subject matter experts to handle the administrative HR functions of your business, you reduce your employee headcount, ensure that greater quality control mechanisms are in place and enhance the employee experience while also protecting the integrity of the data and improving the timeliness of the reporting.Moreover, by outsourcing tasks that have legal implications and/or could cause liability for your company, you shift that legal burden to a third party and eliminate compliance risks.It short, it’s a “win/win.”
While there’s an extensive amount of evidence to support the above stated facts, the purpose of this blog is to highlight those functions that can be outsourced and how you should go about choosing the right vendor/provider.
The key aspects to consider when selecting a vendor are listed below; the response to these inquiries will help you understand the culture of the vendors you are evaluating – which is a critical step in choosing the right HR Outsourcing partner for your company.Ideally, you want to find a company that will truly be your partner and learn your business, as well as your unique challenges and needs.
Interview and evaluate a service provider just as you would interview an employee; check references!
Ask for case studies and examples of success in achieve savings, efficiency and long-term strategic goals; what quantitative results can they show you!
Do the vendors have long-term client relationships? Did they deliver what they promised? How long have they been in business?Are they a member of the Chamber of Commerce?Check them out with the Chamber of Commerce!
Have they ever done a customer/client survey to identify their strengths and weaknesses? If so, what were the results?
How would they define the term “customer-centric?”
What resources do they devote to ensuring your needs are met, ongoing?
What is the background of the company executives?
What level of relevant experience does the Client Services team have?
Does the company devote time and money to keeping up with industry trends, news, legislative changes, etc?
Do you feel the company is a good fit with your working practices and culture?
Are you confident you can build a relationship of trust and commitment?
As for what human resources procedures and accountabilities that can be outsourced effectively, the list below is somewhat comprehensive; thus, you may determine that only some of these processes and responsibilities are appropriate for outsourcing.Although, without researching the pro’s and con’s, as well as the legal implications of each topic, it would be difficult to determine what the best option are for your respective organization.
HR strategy; a senior HR Consultant can help facilitate strategic planning
Recruitment Process Outsourcing (RPO) is one of the newest technologies to enter into this arena.This link can provide the reader with information on what RPO is and how it works.http://www.rpoassociation.org/index.php
Benefits Administration with employee one-on-one support, including insurance carrier interface and reconciliation; way too many small businesses still administer benefits with paper and pencil; however, there have been enormous technical advances in recent years to change one of the most laborious responsibilities of any HR team.One vendor that this Consultant has worked extensively with and would recommend to any organization is http://www.aboutus.org/BeneTrac.com
Payroll Processing and Administration Services – Payroll processing is one of the most common areas in which companies outsource; however, over the past decade, that function has expanded into the larger realm of Professional Employer Organizations; check out more about PEO’s at: http://www.napeo.org/
Compliance support, including COBRA, HIPAA, FMLA, FSA, EEO practices, Wage and Hour, I-9 etc.,If your company has chosen a PEO, these areas would/could be covered under your service agreement.If you aren’t enrolled in a PEO program, then I’d recommend contacting your insurance broker.Often times your insurance broker will take these responsibilities on at little or no cost to the employer.
Workers compensation support – whether your business is self insured, partially self insured or fully insured a third party administrator, outside adjusters, private investigators, case managers and/or cost containment organizations can help your company to save money and manage your claims.
Compensation structure review and implementation – HR Consulting firms
Development of employee exit processes and procedures - HR Consulting firms
Review and development of policies, procedures and handbooks - HR Consulting firms
Annual review of employee files - HR Consulting firms
Real time access to your data via our web-native HRIS, employee and manager self-service – HRIS, the abbreviation for Human Resources Information System, is a system that lets you keep track of all your employees and information about them. It is usually done in a database or, more often, in a series of inter-related databases.
Employee relations management and support center - HR Consulting firms
Customized management training – leadership development is necessary for all organizations - HR Consulting firms
Relocation assistance – If you hire or promote and relocation is necessary, a relocation assistance vendor will have negotiated reduced rate agreements in place with hotels, rental car companies, movers and airlines, as well as partnerships with placement firms that can assist a spouse in securing a new position - http://www.visionrelocation.com/pdf/OutsourcingCost-BenefitAnalysis.pdf
Advisory role on ADA , EEOC, FMLA, wage and hour issues, disciplinary procedures and termination - HR Consulting firm
For additional information, this Consultant would recommend that you review this website devoted to HR options for outsourcing: http://hroptions.wordpress.com/
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