What are the Stages Involved in HR Outsourcing?

What is the HR outsourcing process?

Selecting an HR outsourcing provider should be a collaborative effort involving decision-makers who understand your company’s goals and HR needs.

Having that understanding is key during the HR outsourcing process, which includes several steps that can help you and your team select the HR outsourcing partner that best meets your needs. These steps include:

1. Assess your HR needs: Do you need HCM (human capital management) software only, help with one or two daily HR processes, or a team of HR experts who will manage your HR on your behalf?
2. Research potential HR outsourcing providers: Review firms that operate in your state and offer the services you need.
3. Consider each provider’s HR technology options: Search for easy-to-use platforms that can be integrated with other systems.
4. Determine what type of client support is provided: Is support provided through a call center, or will you have access to a team of HR experts who can assist you on a variety of HR issues?
5. Request quotes: Ensure the quote clearly lists all HR services included.
6. Assess how each provider aligns with your company: Does the firm’s values align with your company’s values?

What are the stages involved in HR outsourcing?

After your company has completed the steps to find and select the right HR outsourcing provider, it’s time to finalize the contract. But before you do so, be sure you fully understand the services you are – and are not receiving – under the contract.

After the HR outsourcing contract is signed, the onboarding process begins.

Onboarding at a professional employer organization (PEO) such as G&A Partners typically takes about six weeks for a company with less than 100 employees. A larger company may take more time, depending on the complexity of services offered and the number of employees. Within the onboarding stage of the HR outsourcing process, the steps your provider takes will vary based on the services you’ve chosen.

Here is an overview of the client onboarding process at G&A Partners, a comprehensive HR outsourcing provider that operates under a unique arrangement known as co-employment:

Gathering data: A successful partnership between your company and your HR provider relies on strong communiciation. This begins with your company providing information that allows the HR firm to perform the services agreed upon. For example, you will likely need to provide basic employee information – name, email address, hourly rate or salary, job title, and worksite location – if an HR outsourcing company will be handling your payroll.

Working with a PEO requires you to enter into a co-employment agreement, which allows the PEO to handle HR administrative tasks on your behalf. You continue managing your employees, handling operations, and making business decisions. As part of this agreement, your current employees will complete new-hire paperwork during client onboarding.

You will also provide information that allows the HR outsourcing company to set up new accounts, prepare for payroll processing and reporting, and implement new technologies. Though this part of onboarding can feel daunting, a customer-focused provider like G&A will set interim deadlines and provide consistent support that will help the process run more smoothly.

Breakout conversations: At G&A, HR experts will host focused conversations specific to the services you’ve chosen – such as benefits, payroll, reporting, job position calibrations, time and labor management systems, and handbook or policy reviews. They will discuss options available to you and offer compliance guidance.

Training: Your HR outsourcing company will provide training for all employees who need access to specific systems. It’s important to consider at the beginning of this process which of your employees will need to communicate with the outsourcing firm so that those team members can receive full training.

Employee onboarding: The HR provider and your company will work together to verify that required employment paperwork has been completed and that employees are educated on the relationship between your company and the HR provider. This will help them to understand who to contact for specific HR and benefits needs.

Benefits enrollment: Employees will learn about and elect benefits if your company has chosen benefits plans through your HR outsourcing provider.

Payroll complete: The end of onboarding is usually signaled by the first complete payroll cycle administered by your HR outsourcing company. After this first payroll cycle, your provider may visit with you about what went well during onboarding, what needs to be improved, and where additional training might be needed.

How to implement HR outsourcing

The process of HR outsourcing is a much easier experience when there is a strong partnership and collaboration between the HR outsourcing firm and your business owners and leaders.

Here are steps that your company can take to help make the process successful:

• Designate a person in your company who will serve as a liaison with your HR provider.
• Ensure your employees know who to contact with questions and what specifically your HR provider can help them with.
• Clarify the roles and responsibilities for you and your provider.
• If you’re working with an HR partner that gets to know your business and needs, like G&A, schedule regular calls with to discuss your needs, challenges, and any updated goals. They can offer valuable insight on how to grow your business and deal with HR obstacles.

It’s also important to assess your HR provider each year. Things to consider:

• Are you pleased with the services provided?
• Has the provider been reliable, accurate, and easy to contact?
• Are your employees content with the current benefits options?
  

If your current HR provider isn’t meeting expectations, it may be time to consider a new partner. You can compare overall pricing but, it’s also important to look for a provider that offers the best overall value – the combination of cost and services that will place your organization in the best possible position for growth and success.