Making the decision to leverage an outsourced HR provider represents a strategic shift for your organization. While this choice can transform how you manage your human resources functions, selecting the right provider requires careful consideration.
Your choice will impact your employee life cycle experience from hire through retirement, making it essential to evaluate potential outsourced HR providers thoroughly.
“An employee is greatly affected by your company’s onboarding experience from day 1 of employment. HR’s onboarding program is key, as is day-to-day support with systems, communication, and service to leadership, managers and every employee in the organization. Ideally your HR function (whether outsourced ongoing or for a transition period) will create processes/practices that are efficient for all parties and empowering for managers.” Jill Pappenheimer, Partner, HR Consulting
The evolving landscape of HR
Today’s business environment demands more from HR than ever before. From navigating complex compliance requirements to enhancing employee experiences, the scope of HR responsibilities continues to expand. An outsourced HR provider can help you manage these challenges while allowing you to focus on your core business objectives.
“HR departments and their staff have been overloaded, and they are tired. The pandemic and shifting economic priorities have taken a toll on the workforce, which greatly impacts HR staff. Employers need more and more from their HR function, and frequently internal teams are not equipped to provide the wide breadth of needed services; hence, outsourcing can be a great option.” – Jill Pappenheimer, Partner, HR Consulting
7 key indicators of a strong HR provider
1. Service delivery model alignment
Your outsourced HR provider should offer a service model that matches your organization’s needs. Consider whether you need comprehensive HR support, or project support, or assistance with specific functions. Look for providers who can customize their approach to your requirements rather than forcing you into a predetermined package.
At BPM, we start with an assessment of our client’s HR function, along with a budget conversation to ensure specific needs are considered and affordable. Whether concerns are compliance-based or related to practice efficiency, ensuring we meet objectives is most important. We can cite examples of uncovering major gaps that saved organizations from unnecessary fines and potential legal action, as well as staff time through identifying efficiencies. “Awareness is key,” says Jill Pappenheimer, Partner, HR Consulting. “Our clients can’t effect change if they don’t know what the issues are.”
2. Technology integration capabilities
Modern HR demands sophisticated technological solutions. Your provider should offer robust platforms that streamline some of your most important HR functions, including:
- Human Capital Management/HRMS/HRIS
- Payroll processing
- Performance management
- Applicant Tracking System
Be sure to ask potential providers about their technology stack and how they plan to streamline and address practice inefficiencies.
3. Demonstrated track record
Seek a provider who can point to concrete successes with organizations similar to yours. Request case studies and references from clients in your industry or of comparable size. This information will help you verify their ability to deliver results in contexts relevant to your needs.
4. Strategic approach to partnership
The best outsourced HR providers act as strategic advisors, not just service providers. They should demonstrate an understanding of your industry’s challenges and opportunities, offering insights that help drive your business forward. Look for providers who ask thoughtful questions about your business goals and explain how their services align with these objectives.
5. Cultural alignment and adaptability
Your HR provider will influence your company culture, even if it is indirectly. Evaluate how well potential providers understand and respect your organizational values. They should demonstrate flexibility in adapting their approaches to preserve and enhance your company culture rather than disrupting it.
6. Compliance expertise and risk management
With constantly evolving employment laws and regulations, your HR provider must maintain a deep knowledge of compliance requirements. They should proactively identify potential risks and implement strategies to protect your organization.
“Our clients frequently find themselves reacting to compliance requirements after receiving an EDD notice or OSHA letter, rather than proactively addressing risks – an example being meal break requirements during employee time tracking,” says Jill Pappenheimer.
7. Financial considerations and value proposition
While cost matters, focus on value rather than price alone. Consider the return on investment through improved efficiency, reduced risk and access to better resources. Look for transparent pricing models that align with your budget while delivering meaningful value to your organization.
Making the right choice for your future
Selecting an outsourced HR provider represents a significant decision for your organization. Take time to evaluate potential providers against these criteria, keeping in mind that the right choice can dramatically improve your HR function’s effectiveness.
Working with BPM
BPM brings together the elements that define exceptional outsourced HR support. Our approach combines deep industry knowledge with customized solutions designed to meet your specific needs.
Benefits of leveraging BPM’s Outsourced HR Services
- Cost savings on HR operations
- Access to specialized expertise and best practices
- Scalability to meet changing business needs
- Reduced legal and compliance risks
- Enhanced employee experience through professional HR support
- More time for in-house HR to focus on strategic goals
By choosing BPM, you gain access to seasoned professionals who understand the complexities of modern HR challenges and can help your organization thrive in today’s competitive landscape. We know that every business has its own set of strengths and challenges, and that one size does not fit all.
To find out more about how BPM can help you navigate the HR outsourcing process, contact us.
