| Human Resource Outsourcing (HRO) is a term used | | | | an outsource firm will cost versus the cost for internal |
| to define those HR - related processes which | | | | employees. Consider factors other than annual salary |
| companies choose to outsource to a third party. Many | | | | such as office space, equipment, relocation and benefit |
| firms offer full services and act as a virtual HR | | | | costs. Once internal needs have been defined, shop |
| department or may offer al la carte services providing | | | | different outsourcing firms. An outsource firm should |
| as much or as little assistance as needed. Others may | | | | feel like an extension of the organization and be a |
| be highly specialized in one area. Although HR | | | | good fit with the organizations cultural. |
| Outsourcing is relatively new, more and more | | | | Questions to ask include; |
| companies are realizing the benefits of outsourcing at | | | | - How long have you been in business? |
| least part of their HR function. | | | | - How many years experience do your consultants |
| According to a study conducted by Fidelity | | | | have? |
| Investments which surveyed 264 large companies, 190 | | | | - Do your consultants have diverse industry |
| of those companies reported that they outsource at | | | | experience? |
| least one HR function. | | | | - Have your consultants worked outside the HR |
| There are several benefits to outsourcing all or part of | | | | profession? |
| the HR function. Outsourcing eliminates the | | | | - What educational level/certifications do your |
| time-consuming paper chase allowing HR to take on a | | | | consultants have? |
| strategic, rather than administrative role. For example, if | | | | - Will you interact directly with my employees or work |
| a company is going through a high volume of recruiting | | | | through me? |
| and also planning to relocate is the HR Director's time | | | | - Do you handle multi-state locations? |
| better spent reviewing thousands of resumes or | | | | - Is staff available onsite or is support limited to phone |
| working to negotiate and manage the move? In this | | | | and internet? |
| scenario, the company can easily outsource the | | | | - What type of technology offerings and support do |
| staffing and recruiting function to a third party, | | | | you provide? |
| maximizing the core competencies of both parties. | | | | - Who will I be working with? What is their |
| Another benefit to outsourcing is enhanced technology. | | | | background? |
| Many third party vendors either have their own | | | | - Have you worked with similar industries? |
| technology or work with alliances that bring state of | | | | - Is there an attorney on staff for legal support? |
| the art technology to a company, without the | | | | - May I have a list of references? |
| company having to make the time and dollar | | | | - What do you believe you can provide that internal |
| investment in building, purchasing or maintaining an | | | | staff can not? |
| internal system. | | | | - How do you charge? Is it a project fee or by the |
| Finally, outsourcing allows access to local subject | | | | hour? |
| matter experts when needed, especially when locating | | | | - Ask for a copy of the contract. |
| operations to a new state with a unique set of | | | | Outsourcing all or a portion of your HR function can |
| employment laws and regulations. | | | | bring great benefits to employees, the HR team and |
| A company that is considering outsourcing should | | | | the bottom line. The decision to outsource should be |
| conduct an internal analysis. Doing so helps set | | | | made with the same due diligence any other business |
| expectations, determine a budget and builds buy-in and | | | | deal would require to ensure the best fit and benefits |
| understanding of what outsourcing can bring to the | | | | for the organization. |
| organization. Conduct a cost/benefit analysis of what | | | | |