Unlock this Research

Enter your business email to get instant access to the full research.

Determine the Right HR Outsourcing Solution

Do more with the HR department by outsourcing HR activities to free up time for strategic projects and in-house upskilling.

  • HR departments are often faced with limited time, money, and skills; outsourcing is an option to help HR best use resources and improve service levels.
  • HR outsourcing is challenging in itself and needs careful management in order to ensure that expectations are met and the investment is a valuable one.

Executive Summary

Critical Insight

  • The performance of the HR department can be elevated by outsourcing tactical activities to an HRO provider, freeing up resources to focus on strategic projects and in-house upskilling as required.

Impact & Result

  • Investigate pain points in the current HR processes and requirements to determine what is driving the need to outsource HR activities.
  • Use a defined vendor selection process including a request for proposal (RFP) process to solicit proposals for HR outsourcing, and form a proposal evaluation committee to objectively evaluate vendor RFP responses.
  • Proactively prepare the vendor for a successful and collaborative relationship by being clear about expectations and providing them with essential organizational information required to customize service delivery.

Research & Tools

1. Identify HR pain points

Identify key stakeholders, assess current and target HR performance levels, and calculate costs of operating HR functions in-house.

2. Assess HRO appropriateness

Compare current state against target state for each HR function to identify which activities to outsource and determine the right type of HRO solution to achieve set goals.

3. Conduct HRO market research and issue an RFP

Create an HRO vendor evaluation committee, selection process, and evaluation criteria, and then issue an RFI and/or RFP.

4. Select a vendor and prepare to manage the relationship

Gain executive sign-off and negotiate the contract on the final vendor decision, and then prepare the organization and the vendor for the partnership.

Determine the Right HR Outsourcing Solution enlarged preview