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Determine the Right HR Outsourcing Solution for Your Organization

Do more with your HR department by doing less in-house. Outsourcing HR activities frees up time for strategic projects and in-house upskilling.

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  • Tom Darrow, Founder and Principal, Talent Connection LLC
  • Shanil Kaderal, Chief Strategy Officer, Pierpoint International
  • Deanna Schuerbeke, Director HR Global Customer Service & Operations
  • Jacque Vilet, President, Vilet International

Three additional Human Resources and Leadership professionals contributed information to assist with the development of this blueprint. Due to the sensitivity of the information, these contributors requested confidentiality.

  • HR departments are often faced with limited time, money, and skills; outsourcing is an option to help HR best use resources and improve service levels.
  • HR outsourcing is challenging in itself and needs careful management in order to ensure that expectations are met and the investment is a valuable one.
  • HR outsourcing can result in employee demoralization and negatively impact the organizational culture and level of productivity.

Our Advice

Critical Insight

  • The performance of your HR department can be elevated by outsourcing tactical activities to an HRO provider, freeing up resources to focus on strategic projects and in-house upskilling as required.

Impact and Result

  • Investigate pain points in the current HR processes and requirements to determine what is driving the need to outsource.
  • Use a defined vendor selection process including a request for proposal (RFP) process to solicit proposals for HR outsourcing, and form a proposal evaluation committee to objectively evaluate vendor RFP responses.
  • Proactively prepare the vendor for a successful and collaborative relationship by being clear about expectations and providing them with essential organizational information required to customize service delivery.

Research & Tools

2. Assess HRO appropriateness

Compare current state against target state for each HR function to identify which activities to outsource and determine the right type of HRO solution to achieve set goals.

3. Conduct HRO market research and issue an RFP

Create an HRO vendor evaluation committee, selection process, and evaluation criteria, and then issue an RFI and/or RFP.

4. Select a vendor and prepare to manage the relationship

Gain executive sign-off and negotiate the contract on your final vendor decision, and then prepare the organization and the vendor for the partnership.

Guided Implementations

This guided implementation is a ten call advisory process.

Guided Implementation #1 - Identify HR pain points

Call #1 - Discuss the stakeholders to include and how to use the HR Outsourcing Assessment Tool.

Guided Implementation #2 - Assess HRO appropriateness

Call #1 - Review current state against target state for each HR function.
Call #2 - Identify which HR functions to keep in-house, which to outsource, and when to consider consulting solutions.
Call #3 - Determine the right type of HRO solution and set goals for an HRO provider to address.

Guided Implementation #3 - Conduct HRO market research and issue an RFP

Call #1 - Determine the stakeholders involved in the vendor evaluation committee and discuss HRO market research options.
Call #2 - Review RFI responses (optional) and vendor shortlist and discuss vendor evaluation criteria.
Call #3 - Review the customized Request for Proposal Template.

Guided Implementation #4 - Select a vendor and prepare to manage the relationship

Call #1 - Evaluate vendors against criteria and how to make the vendor decision.
Call #2 - Prepare to manage the vendor relationship.
Call #3 - Discuss how to improve in-house HR performance and capability.