The Website and Blog of HR Author and Speaker Lori Kleiman

Human Resources Outsourcing Successes

Allow the HR function to be strategic by outsourcing appropriately.

All strategic human resource functions outsource; without the use of service providers HR would be stuck in administration all day. Aligning with the right vendor will ensure accurate processing of employee services, while freeing up the time of the human resources team to focus on the strategic mission of the organization. HR outsources to payroll processing companies, benefit advisors, and retirement investment companies at a minimum. In a past blog, we discussed how outsourcing can be used as effective tool in small business. In today’s environment, we find that a vast majority of human resources administration can be outsourced, and should be embraced by all HR professionals – and especially those in business who handle HR as a larger part of their business responsibility.

I hear from HR departments of one that they don’t want to outsource too much because they are afraid the outsourcing will put them out of a job. But is that really possible? Human Resources should be the member of the team that ensures the deployment of the most valuable resource of the organization – its people. Outsourcing should be a very strategic decision utilized by HR to ensure they have the time needed to adequately participate in the business. A human resources leader should strategically choose what you going to outsource and what your going to keep in house, and ensure they have selected the right partner to carry on the function. Essentially, you should think of outsourcing human resource activities that can be done by following an agreed upon process. For instance, employee benefit enrollment and notification of your state that a new employee has been hired are perfect functions for outsourcing.

Bringing talent into the organization is a critical function of human resources, at the same time it can be effectively outsourced at time. Understanding culture and fit with a specific manager is a critical strategic opportunity for human resources to drive the organization. However, for clerical or very specialized positions, external recruiting partners can save a great deal of time and quickly and efficiently fill positions.

For instance, a few years ago I received a call from a client in Houston, who said that they were in need of hiring a Polymer scientist with a PHD who will live in Baton Rouge, Louisiana. I was in Chicago, and they were in Houston. But I certainly didn’t know where to tap into a candidate pool with this skill set. I could have accepted the job and billed by the hour, but I know it is equally important to do what you do best – and pass on the rest! Instead, I recommended a great recruiter and managed the HR outsourcing process as the in house human resource function to review candidates and ensure the culture fit before the interview stage.
Allow the HR function to be strategic by outsourcing appropriately. This will allow your HR function the time to participate in a strategic way to drive the goals of your organization forward.

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