Step-by-step Guide To HR Outsourcing

In today’s competitive job market, the Human Resources function of businesses of all sizes, across all industries has gained a place front and center at the boardroom table. In addition to the need to attract and retain top talent, the ever-changing regulatory environment requires strong HR performance to help ensure the organization is kept compliant. With all these factors at play, many businesses are moving toward HR outsourcing as a solution, and the benefits are palpable, including:

  • Expertise – Instead of relying on less experienced employees to handle critical human resources task, you’ll gain the expertise of high-level HR pros.
  • Efficiencies – If your managers are performing double-duty performing HR tasks, HR outsourcing can free them up to do what they’re better suited to do – manage the team.
  • Recruiting & Retention – HR outsourcing can have the net result of improving your company’s culture, employee engagement and satisfaction. All of this may result in stronger recruiting wins and a lift in retention rates.

Follow These Steps As You Make The Move To HR Outsourcing:

  1. Audit your needs internally first. Every company’s needs are different. Your first step in launching an HR outsourcing effort should be to take a step back and audit your needs. Where are your biggest weaknesses, challenges and bottlenecks? Where will you have challenges as you grow (even if you have a handle on an area now)? Where are your biggest risk exposures? How will your competitive edge be improved through HR functions? These and many others are questions that should be reviewed internally to determine the areas that HR outsourcing might improve your business operations.
  2. Search for the PEO (professional employer organization) that fits your needs. Not all HR outsourcing options are the same, and there is not a one-size-fits-all framework for choosing a PEO. By first understanding your own needs, you’ll be better equipped to find a reputable and experienced PEO to take on your human resources outsourcing needs. Ask for client and professional references. Once you’ve determined that the PEO offers the services you need at a price that fits within your budget, you’ll want to perform your own due diligence to ensure that you find a quality organization. You can check into the company history, check references with existing clients and confirm certifications with industry organizations such as NAPEO. NAPEO is an excellent educational and business resource for its members, providing seminars, conferences, online resources, a monthly magazine and more. It is also important to review third-party auditing results and insurance underwriters, if applicable.

    You may also look for answers to important questions such as:

      • What credentials do key personnel have as related to the HR functions they will be assisting you with?
      • What guarantees are provided to your company by the PEO?
      • Under what circumstances can you cancel your contract?
  3. Designate a point person or team to handle the transition to HR outsourcing. Even if your HR outsourcing initiative is only ala carte, there will be much coordination and communication flow needed to transition smoothly. By designating competent, empowered team members to act as liaisons with your PEO contact, you’ll shore up a more effective transition and an improved (more measurable) result.
  4. Create a timeline of milestones and metrics for the transition. Like with just about anything, a timeline ensures things move forward rather than stall or bottleneck on either side. In preparation for your HR outsourcing effort, set up a timeline of tasks that need to occur and what timeframe that falls within. This strategy will help create a smooth transition as well as provide metrics into the efforts both internally and externally.

Founded in 1996, Oasis, a Paychex® Company, is one of the nation’s largest professional employer organizations (PEO). Oasis provides a full range of HR outsourcing to companies both large and small across a wide range of industries. Contact us for your organization’s human resources needs including payroll, recruiting, onboarding, compliance, benefits and much more.

Get started today a free personalized consultation from Oasis.

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