“We have over 15 years experience in the outsource partner world, and being an outsource HR provider have an invested interest to make it work - it's our business.” - Pam Molyneux

What is outsourcing?

Outsourcing is where businesses commission an external party to undertake some form of business activity for them. In the HR world, this could be the entire HR services, a recruitment campaign, the management of a disciplinary situation, the rollout of a new HR Handbook - pretty much anything really!

Outsourcing has become more popular and a part of a lot of business models due cost implications of hiring someone direct and also recognising of deploying an expert in a chosen field of work.

So what are the things to consider when looking for an outsource partner?

• Have a clear reason as to why outsourcing is a consideration - a pro’s and con’s list can help with this.

  • What are the benefits of:

    • Cost saving as the business can pick and chose the services they need help with and when the requirement is complete, the relationship can cease and therefore charges stop too.

    • Flexibility, as outsource partners tend to have a better ability to flex up and down at a much faster rate than internal resourcing.

    • Expertise, access as the outsource partner is in that niche and it is their business to stay up to date.

    • Efficiency, as there is a fully dedicated expert on the activity, with measurable KPIs and full accountability.

    • Risk management, as continuity of service can be quicker to restore in the event of some form of unforeseen event.

  • What are the challenges/concerns of:

    • If managed poorly, assumptions and poor communication can have a massive impact on the success of the relationship leading to impact on the delivery of the service.

• Do your research and shop around.

  • A “beauty parade” is a must - this is where each of the shortlisted potential outsource partners present to the business their services and how the arrangements would work

  • Don’t be afraid to do several rounds of these if you are evolving your thinking as the process proceeds - sometimes, you don’t know at the beginning a question that presents itself, at the 5th presentation, so go back to all potentials and ask them, that way you have a fully informed picture of all.

• Ask for references.

  • And speak with them yourself personally, don’t miss this opportunity to find out more information about the company you are going to place your trust in.

• Consider all of the what if’s for your business

  • Think worst case scenario and look at it from as many angles as possible, that way you and the outsource partner have considered as much as possible up front.

  • Additional things might come up, so keep an open and have regular reviews.

• Agree on regular updates against KPIs and the project plan/retained services

  • Is an end of week update useful for you to understand the activities from that week.

  • An example for a specific project, if managing HR Software implementation, where is the project up to against the agreed project plan timeline, what have the challenges that week and how does this affect the risk radar.

  • An example from an ongoing retained relationship such as delivery general HR Support might include and update that 5 calls have been made in the week, covering absence management, and there has been 1 hours worth of support provided.

• Undertake regular reviews

  • This is to ensure that everything is on track, communication is still clear, expectations are still understood - don’t make assumptions.

• Celebrate successes

  • As with any relationship, the stronger and more invested, the more successful it usually is.

  • Having a coffee to check-in is a nice touch, sending a Christmas card or thank you card is always appreciated.

We have over 15 years experience in the outsource partner world, and being an outsource HR provider have an invested interest to make it work - its our business. So if you want to talk in general about your outsourcing considerations or are looking for a HR Partner, then please do get in contact. We are always happy to talk and share as much of our experience and learnings as possible.

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