9 August 2013
HR Outsourcing
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Best Practices to Consider While Outsourcing Your HR

Organizations often face many challenges and issues while outsourcing their HR functions to a third party vendor. There are many ways in which an organization can overcome these challenges and issues.

HR outsourcing is a growing trend amongst organizations today, and some of the most commonly outsourced HR functions include recruitment, payroll and training. Organizations generally do not outsource their entire HR team to human resource outsourcing companies, for retaining control over functions such as reward management, grievance handling and discipline are considered important.

Although there are many benefits to HR outsourcing strategies, organizations also have to face a lot of challenges and issues in the process.

However, there are seven simple steps which can help companies overcome these challenges without difficulties. Discussed below are HR outsourcing best practices in detail:

HR Outsourcing Best Practices

Recognizing the need

The first step to meet any challenge you may face while outsourcing HR functions is to recognize the need of your organization. You first need to analyze and recognize what needs to be changed in your organization in terms of HR functions. The requirements of functions you outsource to human resource outsourcing companies should then be drafted keeping in mind the needs of your organization.

Work before outsourcing

One of the biggest mistake that organizations tend to make is to take the decision of outsourcing their HR functions to human resource outsourcing companies only on financial grounds. Organizations often simply outsource the HR functions without fully weighing the advantages and disadvantages of the same. It is important for an organization to understand the extra value outsourcing can bring in before outsourcing its HR functions.

Choosing the outsourcing partner

One of the important HR outsourcing best practices is to choose the right outsourcing partner for your organization. Outsourcing needs may differ from company to company, large-scale to small-scale. The outsourcing vendor you choose should be in accordance to the service level required by your organization.

Choosing an outsourcing partner among the many human resource outsourcing companies depends on the qualifications of vendor, experience, technology available with them and how well it can blend in with your organization’s culture as well.

Service level agreements

You should have a formal contract and service level agreement in which the terms and conditions, responsibilities, time scales and measurement criteria are clearly defined.

Open communication

Your outsourcing plan should be openly communicated to the employees as well as the in-line managers in order to define their roles in the process. Similarly, there should be open communication with your HR outsourcing partner, making it easier for them to understand your business and communicate any difficulties or changes necessary.

Commencing the outsourcing arrangement

Initiating the outsourcing arrangement involves establishing a working partnership team, agreeing to transitional arrangements and defining the communication channels. Documents related to company policies and procedures should be amended to appropriateness. It is important to ensure that these documents are up to date, they meet legislative and best-practice requirements along with reflecting the new working arrangements.

Timely review of ongoing service

One HR outsourcing strategy that organizations must adapt is regular reviewing of the services provided by the outsourcing vendor. The regular reviewing system will help ensure that the services provided are in synchronization with your business goals and that they are meeting expectations of all involved.

On a concluding note, organizations can easily overcome the challenges and issues of HR outsourcing if they follow these seven HR outsourcing best practices.

Our experts at Rishabh BPO can guide you through the same and help you grow as a business. Call us at 1-877-RISHABH (1-877-747-4224) or fill in the contact form.

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