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Outsourcing your HR, Payroll and Benefits Requirements – What to Expect From Your Provider

By November 25, 2014March 18th, 2015No Comments

As the senior manager of a private company, the subject of HR and talent management are never far from your mind. The increasing complexity of HR compliance and regulatory issues as well as the Affordable Care Act and ongoing healthcare reform changes have made life tough for all leadership teams. The solution is often to seek outside help and to outsource or contract part of the problem to various service providers. But how do you choose the most relevant provider? How do you ensure the HR issues that your company is exposed to are actually covered by your service provider? We believe the best way forward is to identify an integrated HR outsourced solution. To guide you we have outlined below some of the key attributes you should demand.

Key Attributes

1. Integration
We believe it is imperative that the HR service provider also provides the payroll service. Payroll drives everything when it comes to HR. Employers hire/fire and make changes through the payroll. Integration allows your vendor to supply a holistic service, ensuring that changes to payroll are reflected in other areas such as benefits and HR records.

2. Licensed Broker
The HR Service Provider should also be a licensed broker to ensure a best in class benefits package, relevant to your industry, is delivered. Some industries require more benefits than others and knowing what levels of contribution and what types of benefits to provide as an employer is imperative for the HR Service Provider to assist the employer in making those decisions.

Being a licensed broker your service partner can manage the entire process for Open Enrollment and the hiring of all new employees thus ensuring the a compelling onboarding message is crafted and delivered to those employees. In addition, your vendor should provide the “call-center” support to the employer and their employees to assist with the various questions and or concerns that are likely to come forward.

3. Service Expectations
“Service” is a tired word. Look for evidence that your vendor actually embraces a “service culture”. Most service providers in America today provide a very mediocre service level to clients. When choosing an integrated HR Service Provider it is imperative to choose one that is committed to serving your employees at the highest level. There is nothing more near and dear to an employee than their benefits and payroll. Your employees need to access one voice, one contact and know they will be dealt with in a professional and timely manner. Seek testimonials that provide that evidence.

4. HR Compliance
HR compliance and regulatory issues are complex. You need to access real HR expertise, not just payroll expertise or comprehensive benefits knowledge. You need a trusted advisor who can answer those difficult personnel issues with clarity and with actions you can actually execute not just various options.

5. ROI
The cost to you should generate an obvious ROI. Sometimes it’s hard to put a cost on risk exposure but your provider should be able to articulate an ROI specific to your situation.

6. Understanding What’s Not Included
What’s not covered – Finally you should realize that outsourcing your HR, payroll and benefits requirements doesn’t absolve you from your HR statutory, operational and governance responsibilities. It is essential that you keep HR expertise within your own team to manage the relationship with your new HR service partner. You should expect your service provider to be clear on what they won’t do for you as well as what they will do.

You have choices when appointing external HR service providers. Be careful when selecting the vendor that best fits your needs. We believe integration and world-class service levels are the key to addressing the risks that HR issues pose today and should be demanded from your service provider.