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Your HR department will be heavily involved in several corporate projects over the next few years, but your staff is so tied up with administrative work that you’re not sure how you will swing it. You may end up outsourcing one or more functions so that your department can focus on strategic work. What HR functions are most frequently outsourced and how should you go about selecting an outsourcing provider |
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Answer: |
Outsourcing HR functions has been gaining momentum, as more and more companies are beginning to realize benefits, such as cost savings and the delivery of new services for employees. The most commonly outsourced HR functions include:
- outplacement services;
- employee assistance programs;
- defined contribution or 401(k) plans;
- COBRA administration; and
- defined benefit (pension) plans.
Other areas that are expanding in terms of outsourcing include:
- leave management;
- learning and development;
- payroll;
- recruiting;
- health and welfare; and
- global mobility.
Selection criteria. When selecting an outsourcing provider, companies say the following criteria are important:
- demonstrated HR process expertise;
- prior experience/track record;
- service level agreements in contracts;
- cost saving guarantees in contracts; and
- leading-edge technology.
Source: Hewitt Associates, 100 Half Day Road, Lincolnshire, IL 60069. |
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