Outsourcing human resources - The last craft

1. OUTSOURCING HUMAN
RESOURCES
“The Last Craft”

2. Why this new phenomenon?
Why is HR the “last craft”
Outsourcing HR since the 70’s
Revisited with organisational restructures
“Core business” arguments

3. Common inclusions
Payroll, recruitment, legal representation,
occupational health services, HRIS,
psychometric testing, learning &
development activities, employee
assistance programs, superannuation etc…

4. Not-So-Common inclusions
HR Strategy & design work
HR Audits and due diligence
Complete HR infrastructure

5. Why bother?
Access to better practices
Access to better research
Access to better resources
Price, profit and expenses
Culture

6. How do you outsource HR?
Determine what is and isn’t acceptable
(both current and future)
Set goals and benchmarks
Evaluate providers

7. Determine what is and isn’t
acceptable?
Current state of HR in the business
Desired services
Determining what is in scope
Metrics
Outcomes (financial and other)

8. Outsource Company
credentials
Track record
Referees
Research
Infrastructure
Licences and insurance

9. Tenders
Simplicity
Identical information
Service level agreements

10. Communications Strategy
Variable audiences
Reasoning
Timing
Transition
Expectations of everyone affected

11. Building the “new” HR
relationship
Personable
Reliable
Expert
Advanced

12. Building the “new” HR
relationship
The responsibility of the provider
The responsibility of the company
The responsibility of the line manager

13. What does success look like?
To the provider
To the company
To line manager

14. What if it goes wrong?
Service level agreements
Insourcing
Changing providers

15. The future of HR Outsourcing
Gradual acceptance
Increased elements in scope
Globalisation spread of concept

16. Thank you