Outsourcing Your HR? Follow These Five Steps when Choosing a Service Provider
Last month, we explained Why HR Outsourcing Can Make a Difference for Your Business in Lean Times. But as a business owner, taking the leap to outsource some or all of your Human Resources (HR) services can feel daunting. Common concerns include loss of control, the addition of process approval layers, and vast learning curves for outsourcing partners. There are also several outsourcing approaches available, which can make it challenging to determine which is the best fit for your company.
Having advised both SME and multinational clients through their HR outsourcing decisions, Accela Talent understands all of the considerations business owners must make before they take the step to initiate the outsourcing process. We’ve taken the liberty to share the five essential steps you should take to choose the right HR outsourcing service for your needs.
1. Determine Your Priorities
Before you begin your search for a provider, it's essential to get clear on your business’ priorities and values. What tenets from your organisation's culture and values must your outsource partner uphold? What specific HR tasks do you need help with? Which HR activities are part of your business’s core value chain, and therefore must remain in-house? Which activities are better to outsource to a strategic business partner so you can focus on activities core to your operations? For example, are you looking for help with recruitment, payroll, employee benefits, or compliance? Knowing your priorities will help you filter your options efficiently.
2. Think "Glocal"
When choosing an HR outsourcing service, it's essential to think "glocal," meaning equal parts global and local. While it may be tempting to select a service provider based solely on cost, it's important to consider the cultural and legal differences that may exist between your company and the service provider. An outsource partner that has international client experience but is also well-versed on local laws, regulations and cultural practices can help ensure compliance and avoid potential legal issues.
3. Ask for Referrals
It is a perfectly acceptable and encouraged practice to ask other business owners whether they outsource their HR processes, and gather as many service provider referrals as possible. Not only will there be a higher degree of credibility from the outset, but speaking to the referrer about their experience in detail will give you an idea of how each provider operates in practice, including their strengths and possible blind spots. Especially for organisations that require a high degree of discretion from their service partners, the referral process reinforces trust and ultimately helps you determine which outsourced service provider is the best fit for your company.
4. Start Small
Start by outsourcing a small project or set of processes and then expand to larger assignments as needed. Tasks such as updating an employee handbook, localising employment contracts or setting up an employee help desk are relatively low-risk endeavours that can test the waters before committing to a more extensive, long-term partnership.
5. Communicate Regularly
Clear and regular communication is vital when working with any outsource service. Once onboarding is complete, make sure to plan regular check-in meetings to discuss progress and address any concerns. These discussions will help ensure that the service meets your expectations, that any brewing issues are resolved promptly and that your outsource partner upholds your brand voice and values.
In conclusion, choosing the right HR outsource service for your small, medium, or satellite office of your large business can be a challenging task. For 10 years Accela Talent has been easing the burden for clients across many industries and of all sizes. Connect with us at [email protected] to discuss your HR challenges and see if outsourcing could be a fit for you.
