When Considering HR BPO
The Human Resources executive should evaluate a number of factors when considering outsourcing human resources administrative functions:
Cost
- Reduce HR overhead cost
- Control HR cost within the annual budget
- Requires predictable HR costs even as workforce size fluctuates
- Avoid onerous upfront HR Technology expense
- Disconnected payroll and benefits systems, resulting in excessive benefits costs
Integration
- Using multiple service bureaus
- Frustrated with poor service
- Lack of Expertise
- Hidden fees and unpredictable costs
- Outgrowing current outsource solution
Human Resources Information
- Outgrown current system capabilities
- Failed HRIS project
- Evaluating new software investment
- Facing costly software upgrade
- Rapid deployment alternative
- Web-accessible solution
- Require simple data exchange with financial systems
Company Profile
- Human Resources executive become a strategic partner
- Additional expertise to transition HR teams from the tactical to the strategic.
- Growing or declining workforce
- Acquiring or divesting operating units
- Executive team willing to consider outsourcing alternatives
IT Capital Expense
- Invest IT budget, people and systems to support core business
- Avoid or limit capital investment in non-core business systems
- Lower cost solution for providing HRIS capabilities
- Reduce percentage of IT budget dedicated to an HRIS
Human Resources Strategy
- Focus HR staff on strategic issues, not transaction administration
- Cut administrative cost per employee
- Provide access to HR experts without carrying people and cost
- Enhance focus on people achieving the company's business objectives
- Reduce high transaction cost and volume due to high turnover or low payroll cost per employee
