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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Contributors
- 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.
1. Identify HR pain points
Identify key stakeholders, assess current and target HR performance levels, and calculate costs of operating HR functions in-house.
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
