HR outsourcing is becoming more meaningful to business. Besides providing advantages of cost and flexibility, the key benefit is that it enables the company to concentrate and focus its energy on the core business activities. HRO works well in all situations – for big companies with large spread where it can reduce operating costs, improve the HR efficiency, to small enterprise that get access to good HR capabilities, best practices & talent, which they otherwise may not be able to attract. The reasons for partnering with a HRO, are as numerous and wide ranging as the companies that use them. Some employ a HRO to be able to focus on their core business, others to achieve greater operating efficiencies, and for many others to reduce costs and improve bottom lines. Each of these reasons is valid, of course, and fortunately, companies can realize a multitude of benefits, and more, regardless of the reason they may have initially engaged a HRO. With the increase in the number of corporates interested in HRO, several HRO providers have come up staking expertise in this field. The challenge faced by all the companies interested in HRO is “How to identify Quality HRO Partners?”
For a company interested in outsourcing its HR activities, there are certain important things to be considered. The provider should reach, if not exceed, the company’s expectations. Be careful with the companies that offer the service for unbelievably low prices. HR service provider should have in depth HR experience over broad outsourcing expertise. Some of the important things to keep in mind are:
HRO partners should be flexible and open to aligning their service delivery to client requirement . One standard approach to any process may not work for companies in different domain. Also as per the requirements of the company the providers should extend a comprehensive set of services. A strategic HRO partner offering would include customized talent management services, such as, recruiting, performance management and employee development, as well as tactical HR support, in areas such as policies, planning, and compliance. A high-tech HRO partner may also provide state-of-the-art HR systems and automated tools to enhance the compatibility and effectiveness of a client company’s HR processes. Finally, and perhaps most importantly, a HRO partner should have a team of experienced and highly-trained service-oriented human resource professionals on staff and readily available to assist with its clients’ workforce needs that include
HRO partners should have 8-10 years of experience, strong customer references, and a consistent track record. A well experienced HRO Firm understands the possibilities and limitations of each service delivery option and works accordingly. As business grows specific HR requirements keep changing and thus the HRO partner should be able to understand the dynamics of the HR department and not expect the client to keep informing them all the changes. A well experienced HRO partner will also be aware of the threats and fluctuations that are liable to get into and know how to insulate from them. An experienced partner works as a strategic partner rather than a provider of services.
Make sure that HRO companies have qualified teams, robust internal systems and processes within their organization to meet their promise of delivery. The HRO partner should have proven
service records that benchmark their performance. Tactical, a la carte HR services may suit some businesses. But more dynamic businesses, that want to focus on growth while remaining agile to seize opportunities when they present themselves, will benefit more from a strategic integrated HRO partner, that provides the full breadth of HR and administrative services. Financial strength, infrastructure or size cannot alone benchmark your HRO partner’s performance. They should also have a proven record of helping the clients meet their objective of outsourcing.
An ideal partner should have large customer base spanned across a wide range of industries. This dilutes risk to companies during fluctuations in the market. Diversification includes the form of industry, size of the employee base, and geographic location. A large customer base also indicates the depth of the experience possessed by the company, and it’s ability to serve your business. Also, check about the company’s expertise from it’s local clients and evaluate their relationship with them.
You must monitor and review all the activities done by your HRO partner. In small companies managers can look after this but in larger corporations a system within the corporate structure must be developed to maintain all the records and monitor activities done by the HRO partner. An effective tracking, timely escalations & a robust trouble shooting mechanism can help companies deal effectively with the challenges of outsourcing . More progressive HRO partners can provide their client companies a strong time tracking & MI system that allows business owners to access real time information anywhere, anytime.
Finally, besides having a solid grasp of HRO industry trends to get fruitful results, your company needs to give enough time for choosing a quality HRO partner. When a HRO partner assumes responsibility for your company’s human resources, they must become a consultative partner that can help you meet your growth objectives.« blogposts