HR Strategic Partnerships How to Successfully Align with External Providers

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HR Strategic PartnershipsHow to Successfully
Align with External Providers

• Presented to HRMA Members
• March 23, 2006

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On Our Agenda

• Charlotte Mack King
• Current Trends HR Functions Outsourced
• Obstacles to Choosing Partners
• Reasons for Benefits of HRO
• Jane Rawson
• Due Diligence
• Factors in Considering HRO Partners
• Debbie Prichard
• Managing HRO Partners
• The Future of HR Partnerships

Q A
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Current Trends

• THEN
• Personnel
• HR as service provider
• Short-term cost savings
• Major corporations
• Few vendors, services
• Process/task driven
• Benefits, Payroll, T D

• NOW
• Human Resources
• Employee Self-Service Model
• Strategic services fit long range plan
• Mid-size small cos
• More vendors
• Wide range, customized
• Results driven, ROI

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What Areas Can Be Outsourced to External
Partners?

• PRE-EMPLOYMENT / RELOCATION
• Recruitment/Staffing
• Temporary Staffing
• Background Checking
• Domestic Relocation
• Partner Relocation/Career Transition

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More Specialities Being Outsourced

• BENEFIT ADMINISTRATION PROGRAMS
• Risk Management
• Flex Spending Account Administration
• Health Care Benefits Administration
• Pension Benefits Administration
• Retirement Benefits Administration
• Retirement Planning
• Employee Assistance Programs
• Work/Life Balance Programs

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Outsourcing Areas

• STRATEGY AND TECHNOLOGY
• Strategic Business Planning
• HR Strategy
• Succession Planning
• HRIS Systems
• Employee Call Centers
• COMPENSATION
• Payroll Administration
• Compensation Planning/Surveys
• Incentive Planning

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Outsourcing Areas

• PERFORMANCE
• ? Performance Management
• EmployeeTraining and Development
• Team Development and Facilitation
• Organizational Development
• Executive Development and Coaching
• ENDING EMPLOYMENT RELATIONSHIPS
• Outplacement/Career Transition
• COBRA Administration

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Challenges in Deciding to Outsource

• PERCEIVED CONCERNS
• The big O
• Customer service to employees might be affected
• Outsourcing might impact company culture
• Loss of control
• Loss of HR jobs
• NATURAL RESISTORS
• Within HR
• Within Senior Management
• Among employees

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Challenges in Deciding to Outsource

• EXPERIENCE
• Lack of Outsourcing Experiences
• RFP Development
• Locating Vendors
• Assessing for Fit

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Benefits of a Strategic Partnership

• Specialized Expertise
• Everchanging Compliance Issues
• Resources at Your Fingertips
• Access to Products Services
• Technology
• Cost and Time Savings
• Effectiveness and Efficiency of Processes
• Greater Room for Internal Strategic Role
• Opportunity for Increased Business Value
• Company focuses resources on core business

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More Benefits

• FOR HR PROFESSIONALS
• HR spends more time on strategic direction
• HR focuses on core business functions
• Perception of HR as business partner
• Better HR reputation among Senior Executives and
  Employees
• Increased Job Satisfaction
• Improved HR metrics

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Conducting Due Diligence

• DUE DILIGENCE
• Know your needs
• Establish satisfaction levels
• Research your potential partners
• Ask tough questions
• References
• Assess for fit

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Considering External HR Partners

• FACTORS
• Proven track record
• Recommendations
• Cost of services
• Guaranteed service levels
• Flexible contracting

• Compatible corporate culture
• Niche in specific area
• Vendor employee/client ratio
• Physical location
• Size of vendor company

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Managing External HR Partners

• Recruitment/Staffing
• Temporary Staffing
• Executive/Search Recruitment
• Contingent
• Retainer (Fee-Based)
• Temporary Recruitment
• Temp-to-Hire

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Looking for Signs

• EVALUATING CONSULTING PARTNERS
• Uses internal HR team in effective ways
• Is proactive/anticipates challenges
• Initiates regular communication
• Fits into HRs strategic plan
• Makes HR look good

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The Future of HR Partnerships

• Estimated 1/3 of HR professionals say company
  plans to increase the use of outsourcing
• Career Opportunities lie with HR Vendors
• SHRM tracking the Outsourcing movement
• Vendor Management skills will be needed
• The role of HR professionals will continue to
  alter as the industry advances into new territory
• Some of the big players leading the way include
• Towers Perrin -- Accenture HR Services -- Mercer
• Hewitt -- Watson Wyatt
• To read more go to www.shrm.org/hrmagazine/04Se
  ptember www.shrm.org/hrmagazine/06March

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Charlotte Mack King, SPHR Resource Innovations
Incorporated Retained HR, Training Career
Transition 239-936-3903
Thank you
Jane H. Rawson, SPHR Gevity Emloyee Management
Solutions 239-949-8501
Debbie Prichard, SPHR Office Team / Robert Half
International Specialized Administrative
Staffing 239-985-2240