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5 Steps in Choosing the Right HR Outsourcing Partner

Posted by Monaghan, Christian at Thursday, 11/29/2012 12:18 pm
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2.8 from 24 votes
Read the full post on the SharedHR blog.

Choosing a partner to provide human resources outsourcing is no small consideration. At a time when nearly every major business process initiative is being scrutinized by boards and shareholders – you want to ensure your time and money are invested in a productive relationsip.

Keep in mind as you evaluate HRO partners that this will more than likely be a long-term relationship, and like other relationships it will evolve over time. It is very important that you learn as much as you can about a prospective HRO partner before you sign a contract.

Here are some areas to consider when evaluating a potential HRO partner.

1) Need for Expertise

Consider whether the HRO partner has vertical industry expertise. Would an HRO partner with lots of experience in the manufacturing sector but none in banking provide quality HRO services to a financial services client? Maybe, but the chances of a successful, long-term working relationship are much greater if the HRO partner fully understands the unique aspects of the client’s industry, including the labor pool, government regulations, union rules, and legal issues.

The same goes for experience with organizational size. If a large, global enterprise with 4,000 employees scattered around the country hires a partner that normally works with small and medium-sized clients, chances are the relationship will flounder. When you’re dealing with HR issues and functions, the number of employees in the organization is a major factor in the equation.

Make sure the HRO partner has depth and expertise specific to Human Resources Outsourcing. Ask questions about the HRO partner’s previous expertise. Have they previously handled benefits, payroll, employee training, employee relations, regulatory compliance and other HR functions?

2) Reliability Matters

Having a reliable HRO partner goes a long way towards ensuring that corporate goals are met. Therefore, you will want to look for an HRO partner that has a reputation for reliability. As you go through this process ask yourself, “Will the HRO partner likely respond promptly when problems arise? Will they deliver on all the promises laid out in the outsourcing agreement?”

Often you can get a sense of how reliable a potential HRO partner will be during the RFP process. It is also a good idea to solicit feedback from other clients and if possible meet the team of professionals that will actually provide the outsourced services. In addition, check with colleagues about experiences they’ve had with a particular partner and look for other information from sources such as online reference site, forums and discussion boards.

Read the full post on the SharedHR blog.

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