Picking a HR Outsourcing Company

When selecting the companies to administer your HR outsourcing services it’s important to make sure your company selects a provider that will be able to exceed expectations. Be weary of companies that are offering drastically lower prices than most other providers. Most companies however, find the most value by servicing a provider that has in-depth HR experience over broad outsourcing expertise. According the Hewitt survey, 82% of companies sought third party administrators that had in-depth HR experience. More often than not, companies that have in-depth HR experience are more costly than companies with broad outsourcing expertise.

After selecting the outsourcing provider that you will be using, the next challenge is establishing an organization in-house to monitor the performance of the HR services. In smaller companies the company manager can do this, but in larger corporations an organization within the corporate structure may need to be established to make sure the HR service delivery is offering value. HRO is beginning to take on a more strategic role with many of their services extending far beyond just payroll services. They have expertise to decide on strategic direction for companies as long as a retained in-house HR director is overseeing the process. Picking a HRO is a long process but you and your company should have a solid grasp of your company’s needs and HRO industry trends.

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