Companies are moving towards HR outsourcing more than ever now, and this trend is expected to grow. HR outsourcing seems like a straightforward task at the surface. However, it is a multistep process that you have to go through when you hire a workforce solutions provider such as HR Options. Since large and small companies alike outsource their HR, the process and steps for both of them might be slightly different. However, the core steps of outsourcing are usually similar for all organizations. If you are a decision-maker or a manager planning on outsourcing HR, it pays to know its process. To help such decision-makers and managers, we have created this article to explain each step, so read on.
Step 1 Picking the HR services you want to avail
HR services providers allow you to outsource either specific functions of your HR or all the HR functions at once. Depending on each organization’s individual needs, the HR services each organization will outsource will be different. Usually, HR outsourcing firms charge on a per-employee basis based on how many HR functions you are outsourcing. So it is crucial to pick what HR functions you need to subcontract based on your budget. That is because the more functions you will outsource, the higher the cost will be. The best way to choose HR functions that you should subcontract immediately is by analyzing HR tasks. Once you know what HR roles are difficult for you and your team to manage, you can start by outsourcing them to avoid unnecessary costs. If your analysis shows that your organization is struggling with all the HR functions, it is an indicator that you will have to outsource most if not all the HR roles to an outsourcing firm.
Step 2 Selecting an HR outsourcing firm
You can’t just look up workforce solutions near me and hire the first result that pops up in the search results. After picking the HR functions to outsource, the next crucial step is to select the right HR outsourcing firm. While you can hire an HR firm from anywhere you want, it is still a good idea to hire a local HR company to outsource your HR functions. That is because local companies will be familiar with your state’s employment laws and will be able to handle compliance better. Not to mention you can quickly get a hold of the HR services provider if it is located nearby to hold a meeting or get a briefing. Next, you would want to select an HR company offering its services at a reasonable price and has a good reputation in your specific industry. Keep in mind that HR consultancy firms may specialize in handling HR of different industries, so it is essential to choose a consultancy firm with expertise in handling HR matters of your industry.
Step 3. Initiating the outsourcing process
Once you have selected a reputed HR services provider, you can start outsourcing your HR functions to them after completing the necessary paperwork and contracts. Ensure that the HR outsourcing company you have picked knows your requirements and expectations related to outsourcing. The HR company will evaluate the current status of your company’s HR functions before they can start taking over your HR functions step by step.
During this process, you will also have to keep your employees involved because HR outsourcing can significantly impact them. You will have to inform your workforce about how the outsourcing process will occur and how it will affect the work. Your HR outsourcing partners will guide you throughout the process, so if you have any quires, you can always contact your HR services provider online or hold a quick meeting.