2012-02-13

The pros and cons to outsourcing your HR functions

Michelle Ganuelas

Outsourcing your HR can benefit your company tremendously but like any project, there may be some concerns that linger before you come to a decision.  Some common concerns are: “Is there a chance of misplaced loyalty?” Or “Will we will lose control over their company if we outsource?” Or, “Will we be charged with hidden fees?”


How can we eliminate these concerns?


It can be hard to put full trust into an outsider coming into your organization to make some major changes.  There may be some concerns that similar efforts may not go into a job, like the efforts of your full time employee.  Your outsourcing providers’ main priority should be to maintain a strong relationship and loyalty with you.  Not only will this will bring them continued business, increased reliability and a solid reputation, but it will give you confidence in your choice of vendor.  Always make sure to do your due diligence when shortlisting your outsourcing clients.  As a best practice, you should thoroughly research HR outsourcing providers and especially look for specific case studies and testimonials from previous and current clients.  As a decision maker, this gives you the ability to dig deeper into the experience and customer service that the clients received.


Losing a little bit of control to your outsourcing provider isn’t a negative thing when you are implementing an organizational change.  Trust that you decided to commission the right organization to partner with.  Have good faith that they are industry leaders in HR Outsourcing and are also exceptionally good at what they do; as a business owner or manager, this should free up your time to focus on the success and profitability of the organization.  You should let the professionals do what they are good at; also you must maintain open communication lines throughout the progression of your project plan.


To avoid paying more than you’ve bargained for is simple.  Go through the contract with a fine toothed comb; avoid settling for the first draft of the contract; with your provider, go back and forth as many times as needed to ensure that the contract suits your organizational needs and goals long term.  Review the cost of the project and all details noted of the service.  Avoid any complications down the road - it’s up to you to go through any contract in its entirety.


About Michelle Ganuelas - HR Project Consultant - Talent Management Solutions

Michelle is a HR Project Consultant with a strong background in operations and talent management. She has experience in HR Consulting, HR Outsourcing, Leadership Development, Team Effectiveness, Business Development, Training and Systems Implementation.  Michelle has over 8 years of human capital experience with a Master’s focus on Organizational Change and Development.   Michelle manages HR Partner On Demand and the HR Help Line at Drake and collaborates closely with clients to enhance and improve organizational effectiveness, performance and profitability.

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Under this title – and as part of my theme that People matter critically when pursuing a Customer-Focus strategy - I published two prior blog posts.

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In my previous blog entries I have argued about the validity of the People > Service > Profit idea, the importance of Hiring Right and the fact that often good people are stopped by bad processes or bad management.

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