Human ResourcesKnowing When to Outsource Your HR Functions

How many times have you gone to work every morning only to see those piles of HR paperwork starting to form mountains on your workstation? Are you wondering if there is even a cheaper and better way to get all things done?

Now more than ever, many HR professionals cannot help but wonder about this question. And then there are those who have decided to finally take that giant leap to outsourcing their HR work. Well, you might be surprised how taking this radical step has actually work great for many companies out there.

In fact during a Conference Board study, about 51% of HR managers claimed that there were able to achieve all their objectives when they decided to outsource their HR work, while the remaining 49% felt unhappy with such outsourcing arrangements. What is the major difference between those that outsourced their HR work, and those that didn’t?

The study by Conference Board has revealed that the outsourcing which yielded the lower satisfactory results were development and training, recruitment, and employee communication.

So, why is outsourcing these three aspects to a vendor a not so good option? Many outsourcing partners usually find it hard to understand the culture of the company, and this is what can lead to somewhat unsatisfactory results.

There is actually one thing you can do whenever you decide whether or not you should be outsourcing your HR functions. More than anything else, you have to focus on your bottom line. You can try to outsource those functions which call for lots of paperwork but only little cognitive involvement. Tasks that are quite time consuming are usually a waste of HR talent.

The companies which yielded the high satisfactory results and saved money involved their outsourcing partners in tasks such as administration, health benefits and pension management, and retirement plans.

Now, assuming that you have decided to outsource your transaction heavy tasks, how will you be able to determine the ones that you will outsource, and how many are you going to outsource in the first place?

Companies which have successfully outsourced their HR functions with a single key function given to their chosen vendor, and they moved to the next once after successfully accomplishing and providing satisfactory results.

Tips for HR Outsourcing

Most of the vendors out there are going to offer you with packages at lesser price just to lure you into using the services they provide. Instead of settling for the first one that comes your way, take time in deciding which specific functions you will outsource, how and at what certain phase you will give the next one to your chosen vendor. In case things fail to work out, you will be able to know why it happened, and how you will be able to improve them little by little.

There are also some vendors which will you a price according to the HR services for a particular number of employees. You should ask them whether they will want to cut the price should you decide to go a bit under this number.