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.
- 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.
Determine the Right HR Outsourcing Solution for Your Organization
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.
About McLean & Company
McLean & Company is an HR research and advisory firm providing practical solutions to human resources challenges via executable research, tools, diagnostics, and advisory services that have a clear and measurable impact on your business.
What Is a Blueprint?
A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your HR problems.
Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.
Need Extra Help?
Try Our Guided Implementations
Get the help you need in this 4-phase advisory process. You'll receive 10 touchpoints with our researchers, all included in your membership.
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.
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.