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 The
Organizations Decision:
If you have made the business case to outsource or
partially outsource, it is important to set clear expectations for
the outsourcing process, especially in the following areas:
-
Quality of
service delivery
-
Direct and
indirect impact on employees
-
The
provider's ability to handle the organizations needs
By outsourcing
administrative services whose primary business is delivering such
services, in-house HR professionals can pursue more strategic HR
functions, referred to as "focusing on the core", eliminating
all the transactional work.
How to Choose
a Vendor?
There are a variety of service providers who are able to handle
everything from a single task, like payroll, to a complete HR
function. However,
vendors must be chosen carefully as the lowest bidder may offer
substandard services. The following checklist is a sound guide to
making a decision:
-
How long has
the vendor been in business? Do they appear stable?
-
What kind of
quantitative results has the vendor delivered before?
-
Does the
vendor carry insurance coverage such as Professional Liability
Insurance and Errors and Omissions?
-
How
substantial are the vendor’s tools, technology, and systems for
constantly sharpening their practices?
-
How does the
vendors pricing and terms stack up? Can the vendor show a
satisfactory “return on investment”?
-
Do the
vendor’s services meet professional quality standards?
-
Does the
vendor offer a warranty?
-
Do the
vendor’s provide references?
As human resource
management grows more complex, the option for responding to the
challenge fortunately continues to broaden and becomes more
creative.
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