Knowing these pitfalls is key to avoiding them – and to achieving outsourced HR success.
HR outsourcing can be hugely beneficial to your organization. It can also be tough to get right. Here are some the biggest challenges organizations face when outsourcing some or all of their human resources:
1. “Our outsourced HR sold themselves as a one-stop shop, but there are things they don’t handle.”
Fully outsourced HR handles all HR functions for you. PEOs, staffing services and recruiters, payroll and benefits companies/software, and most consultants offer only some slices of the HR pie.
If you outsource HR, do your homework and know precisely what you’re buying. Start by mapping a prospective vendor’s services to the entire scope of HR functions. Are you clear on what you’re getting versus what you’ll handle in-house (or outsource to another provider)? This is especially essential if hiring a consultant, as they often offer most but not all elements of HR. Companies sometimes fail to realize this until there’s payroll to run and no one to do it, or when they realize no one is designated to onboard new employees – dire situations that research and reconnaissance can help you sidestep.
2. “Our outsourced HR organization isn’t blending into our culture.”
If an HR representative enters a laidback workplace wearing a business suit and tries to usher in a strict environment, it will not work. This is equally true if the scenario’s flipped.
In short, when an HR representative doesn’t blend into existing company culture, disconnect ensues. Policies commonly will not blend and staff will feel uncomfortable talking to HR. It’s the responsibility of the outsourced HR provider – not the client – to keep this from happening. myHR Partner has proprietary processes in place to help us understand and blend into our clients’ cultures.
3. There’s only one person assigned to our company. When they’re out, our HR is on-hold.”
Several myHR Partner clients came to us after frightening scenarios when their outsourced HR consultant was out on unexpected and/or extended leave.
HR consultants in particular are often one-person operations. This poses a challenge and a risk to your business when they’re unavailable. myHR Partner deliberately protects against this. With us, three HR professionals routinely handle your business.
4. “They’re giving us one-sized compliance advice that doesn’t work for our structure, culture, and/or needs.”
Your organization is one-of-a-kind. To unleash benefits, more complex and strategic aspects of its HR must be executed with similar nuance.
It’s why myHR Partner shuns one-sized-fits-all HR. We customize plans and pricing for each client that align with their exact culture, needs, and objectives. When vetting outsourced HR vendors, ask for case studies that attest to the provider’s ability to customize the same service across a variety of different businesses and use cases.
5. “They didn’t explain how much involvement they’d need from my staff and me.”
Businesses that outsource with PEOs in particular are often surprised when tasks still fall on (or require involvement from) their own internal team. This can quickly undo your reasons for outsourcing HR in the first place!
When shopping outsourced HR options, ask what involvement the provider needs and expects from your company – and the related time commitment and workflow. Fully outsourced HR, by definition, will demand the least. Your company’s leadership is still at the helm of high-level decisions and direction, but day-to-day functions land on our desks, not yours.
6. “Pricing is based on a percentage of my staff’s salaries – yet this isn’t reflected in the work they’re delivering.”
PEO fees are tied to your employees’ salaries (pay an employee more, you have to pay your PEO more). This can deter PEO clients from creating a new role or bringing on a well-paid hire. Even more, it means that PEO rate fluctuations often have no connection to the quality or scope of work they’re providing.
myHR Partner doesn’t make money when you hire and we have no financial stake in your people. The opposite, in fact: With us, you only ever pay for our time, at a rate commensurate to the services you’re receiving.
7. “I pay the same rate for their basic administrative work as I do when they are handling complex HR initiatives.”
myHR Partner clients love our win-win rate structure:
We carefully assemble a team of staff three members (an HR director, HR manager, an HR generalist) with the right HR acumen for your need, industry, stage of growth, and workplace culture. We do this to make sure you get the most out of your investment at a cost that’s in reach for your small and mid-sized organization or private foundation.
8. “Their staff has some certifications, but their knowledge seems limited.”
Given the complexity of human resources and what’s at stake, myHR Partner believes that HR should be performed exclusively by professionals with, at minimum, an HR degree from an accredited college or university or a certification through the Society for Human Resource Management or the HR Certification Institute®. When vetting providers, request educational credentials and review them carefully.
9. “They keep turning over staff and I have to start all over getting to know someone.”
Service provider staff turnover is a hassle and a liability – and all too common on today’s professional landscape. At myHR Partner, we do everything in our power to protect our clients (and our own internal team) against a rotating door of new employees. Thanks to ongoing intentional efforts, myHR Partner has one of the lowest turnover rates in our industry, resulting in an unusually high degree of consistency for our valued clients.
10. “They’re not taking the time to get to know my staff.”
HR is personal. HR professionals have access to information about employee pay, life and health events, and performance history. It’s a professional relationship that works best when there’s trust, respect, and some familiarity between HR representatives and the company employees they serve – things that are often lost when HR is outsourced.
myHR Partner goes the extra mile to establish a rapport with our clients’ teams. These personal connections are invaluable when it comes time to navigate employee scenarios that benefit from familiarity and a human touch.
To learn more about how to successfully navigate the challenges of outsourcing HR, check out our Indispensable HR Outsourcing Buyer’s Guide.