Human Resource Outsourcing (or HRO) providers help handle HR tasks, payroll, benefits, trainings, and compliance, based on your needs. Ideally, this set-up is efficient, flexible, and scalable.
Choosing or switching HRO partners is no small consideration. At a time when nearly every major business process initiative is being scrutinized by boards and shareholders, you want to ensure your time and money are invested in a productive relationship.
How do you know if you should reconsider your HRO choice?
1. It’s been a while since you’ve evaluated your partnership
It’s important to periodically evaluate whether your business partnerships and the services you utilize are helping propel you closer to your goals, or holding you back. If you haven’t evaluated your HRO relationship in a while, now’s the time.
2. Your team’s morale is suffering/employees complain constantly about processes
If your HRO is distant and difficult to contact, your employees are left feeling frustrated and unimportant to the company. Processes should be streamlined; accessing basic paperwork and data should not be a hassle. A good HRO should be instantly accessible, not unreachable.
3. Your administrative burden is not lessened/they create more paperwork than they save
A good HRO should improve compliance and accuracy and leverage technology to streamline tasks and costs. Conversely, poorly managed HROs deliver lackluster results at best, and fail to communicate. This leaves you to do the tasks that you outsourced in the first place. If they’re creating more problems than they solve, it is time to switch providers.
4. They’re difficult to reach/poor customer service
Good, responsive customer service is essential when you run into any HR issues. There is nothing worse than having urgent issues ignored. An HRO should act as an extension of your operations. Customer service should respond quickly to questions and resolve any problems. At Solid, our customer service team is so beloved they get invited to BBQs.
5. You’re Human Resource Outsourcing provider is out of sync with your internal organization
A good HRO should complement your team, not override, railroad, or stifle them. To help avoid this problem, try to hire outsourced human resource personnel who can formulate a method in integrating and including the present employees and workforce more peacefully without any discrimination.
6. They’re not proactively keeping you compliant
You don’t want to be on the defensive all the time. Staying on top of compliance issues is one value a great HRO can provide. HR compliance is easy to overlook, especially if you’re a busy business owner and don’t have the right expertise on your team. Rest easy knowing the experts of employment have your back.
7. They’re behind the technology curve
Technology is quickly changing the fundamental nature of businesses, human resources included. This market is driven by advancement in technologies and the optimization of data. Improved technology can make a good impression on applicants and long-time employees alike. If your current HRO is using old and outdated programs, it may be time to look at some of the other options out there.
8. You’re Human Resource Outsourcing provider is not clear/concerned about your costs
Outsourcing your human resources operations should save you money in the long run, both in terms of infrastructure and maintaining a large employee pool. Your HRO should work with you to keep costs down. If they’re charging you hidden fees, using shady pricing techniques, and not customizing to save you money, there is a problem.
9. They sold and disappeared
Do you feel like just a number? Did they close the deal and run? Your HRO should become an essential part of your team after you make the selection and sign your contract. If it seems like they disappeared after you purchased the service, maybe they’re not the right HRO for you.
Conclusion
Take your time and be strategic about this consideration. It can be cost-effective but choosing a poor partner can introduce new risks to your organization. Some may be related to compliance and taxes while others can be as simple as HR processes that frustrate employees and increase turnover.
If you’re ready to connect with a Human Resource Outsourcing firm that will help you grow your business, contact our team at Solid Business Solutions.
