What to consider when choosing a HR outsourcing provider?

Many companies are now starting to evaluate their total overhead where many new working models have been adapted since the outbreak of Covid-19, for instance work-from-home, separate the total workforce in several shifts to minimize the headcounts in office each time and etc. With this trend, it is a good chance to re-structure the company in order to reduce the overall overhead. Working with a HR outsourcing provider will help ease the financial burden and keep the companies in compliance.

To choose the right HR outsourcing provider, companies are recommended to consider the following factors:

  • Level of Service
  • Cost
  • Experience
  • Available Offerings

choose HR outsourcing provider

Here are 4 tips to choose a good HR outsourcing provider:

1. Level of Service

Since one of the reasons the company has likely chosen to outsource HR is to free up from administrative tasks so staff members can focus on business, the company will want to make sure that the HR partner provides a worry-free experience. The following questions can be asked to give an insight into the level of service. 

  • Will the company /client be assigned one professional and, if so, can meet them beforehand?
  • What’s their turnaround time for responding to questions?
  • How many years of HR experience do they have?
  • Is there a hotline available for urgent needs?

2. Cost

Even for large companies, price can play a big role in deciding which provider to select. As evaluating price quotes, better to talk with the vendors about potential ways to save. One option may be to see if the company can customize support by picking and choosing the services versus paying for a bundled package. This way can help the company pay for help which they really need.

3. Experience

Since HR issues can be complex and the consequences for getting them wrong severe, it’s important that the provider has the experience to keep the clients in compliance with workplace rules and regulations. And ask potential vendors if they will assign a senior-level professional with experience to give the guidance in difficult situations like employee relations or terminations.

4. Available Offerings

As the company starts sizing up vendors side by side, it’s useful to first understand exactly what services are needed. It is important to ask about the extent of each provider’s offerings to see if they can meet the needs. Even if the company only wants to outsource a few functions or handle a small project now, the company may want to look for a full-service provider that can provide added support as they grow. 

There’s a lot to consider when it comes to HR support selection. By asking the right questions, the company will be able to identify a good payroll & HR outsourcing service provider.