You were having a nice day until your boss called you into a meeting and told you "it's time we look into outsourcing our benefits, payroll, and other HR functions. I know we've done it in house for 50 years, but it's time for a change."
"Get whatever resources you need, set up teams, and get back to the management steering committee in two to three months with your recommendation." Great... now what do you do. The purpose of this section is to share ideas about this process. Of course, there are a great number of good consultants that can help you, but it doesn't hurt to get some insight before you start. Plus, as with the rest of HRWisdom.com, this is a place to share experiences that might help others.
Areas I'll cover are:
1. Understand your current systems, costs, staffing, legal requirements, legacy issues, hidden special benefit processing, data issues, culture, resistance by those who's job could be affected, and other points.
2. Should we bundle (use a single source vendor or perhaps several vendors with a bundled look or multi vendors that you manage yourself)?
3. The decision process. How do we do this? How do we measure each of the options? How about getting good cost numbers? Reference checks...are they valuable? Making the presentation to management. Other fun things.
4. Implementation of whatever you decide. How long should it take? What are the risk. What should we do
5. Ongoing expectations and managing the vendor
(definitely look at related sites like partnering with the vendor).
It's time we look into outsourcing our benefits, payroll, and other HR functions. Here's some learnings to help you with this process.....Can't decide, look below at the 8 ball and ask it.