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How Should You Prepare for HR Outsourcing?

CoAdvantage-If you are considering outsourcing some or all HR functions, or are considering expanding your outsourcing, do yourself a big favor and do some prep beforehand. This preparation does not have to be extensive or onerous – most reputable HR partners or Professional Employer Organizations (PEOs) are very good at picking up from almost situation – but if you can approach the initial conversations with a clear understanding of your needs, goals, strengths, and weaknesses, you can set the stage for success. This means you can help your partner to be more successful from the get-go and start reaping the rewards of outsourcing sooner. 

1: Identify your goals as an employer

Start by articulating what you’d like to get out of the outsourcing relationship. Most organizations turn to outsourcing as a means of saving time and money, but it may be worth digging into your goals a little deeper. Beyond time and cost savings, your business might be changing (through a merger or by expanding into new markets) that require new HR knowledge or skillsets, or perhaps there are other specific HR-related issues you need to resolve. Being able to clearly communicate your objectives will allow your HR partner to put together a package of services that will be sure to meet your needs.

2: Identify any specific employment issues you want to address

You might prepare for outsourcing HR by taking stock of your employee situation. For example, consider how much time and money you spend on recruitment currently. Then, look at your turnover rate. Check if there are specific issues you’re facing, like labor shortages or skill deficits. Already knowing this kind of information can help you better understand and contextualize what an HR partner can actually do for you. It can also help you to choose a partner, because not all HR organizations offer the same suite of services. Knowing the areas where you need help can ensure you select a partner or PEO who can be maximally successful for you.

3: Identify any regulatory or compliance issues specific to your business or that you’re struggling with

This is sort of a subset of #2, but it’s worth noting on its own. Labor law is one of the thorniest areas of HR activity for employers, especially for small and midsize business owners who may struggle to stay on top of these issues. It can help to identify the markets in which you operate and understand if they bear unique regulatory requirements.

For example, if you operate in an industry or region with strict safety regulations, you want to work with an HR partner or PEO that has dedicated experience in that area. Similarly, if you work with a lot of foreign workers under the H-1B visa program, you definitely need a partner with experience in that area.

4: Consider your future plans

A good HR partner should help to position your organization for future growth. Beyond your immediate objectives, think also about your larger business objectives. If you think you might want to expand into new markets, new product lines, grow significantly, adjust your business model, or anything else, it may affect planning for hiring, compliance, and employee relations. Here too, a little preparation can help you choose the right HR partner and help that partner tailor to their services to set the stage for success for you.

CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with HR administration, benefits, payroll, and compliance. To learn more about CoAdvantage’s ability to create a strategic HR function in your business that drives business growth potential, contact us today.