Trusting HR to a 3d party: Keys to the best approach

Fact: Human Resources certainly isn’t immune from the pressure to contain costs.

We’re not just talking about headcount or salaries, either.

HR administration is an area where many of your peers are looking to scale back – and some are turning to outsourcing some or all of their processes to do it.

So how to ensure you get the payoff you’re after from this move?

The folks at Hewitt Associates have some ideas.

Hewitt recently surveyed some of your peers who have started entrusting HR to a third party.

When it comes to the sign of a successful program, check out what percentage of your peers are using what measurements:

  • better service quality (81%)
  • more operational efficiencies (79%)
  • lower operating costs (70%)
  • greater employee satisfaction (65%), and
  • HR staff realignment or reduction (48%).

Of course, you may have to be prepared to fight for that payoff. There are some barriers to success, notes Hewitt.

Assuming companies have the budget for it, the No. 1 obstacle to outsourcing even part of HR is the perceived loss of control over key processes.

That’s something you’ll want to address from the start.

0 thoughts on “Trusting HR to a 3d party: Keys to the best approach”

  1. True, but there is no reason to waste your time doing the majority of the administration and compliance work that CAN be done off site. For example, how much does it add to the bottom line to do your own payroll or workers’ comp administration. Assuming you have a good provider, there can absolutely be a time and liability savings there.

  2. Outsourcing ensures compliance, reduces liability, and when considering the cost of doing business, saves costs. It does take work away from some HR generalists, but does create jobs for the firms providing the ourtsourcing.

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