HR Outsourcing Checklist
If you are thinking about outsourcing your HR requirements, with so many HR providers in the market you may wonder which one is right for your business. With nearly a decade of HR industry experience, here is PlusHR’s comprehensive checklist to consider when outsourcing your HR:
Check the contract length
A multi-year contract always benefits the supplier not you. You have no way of knowing what your requirements are going to be over the medium to long term, they could easily change from one month to the next. Instead look for flexible terms, like an hourly or monthly rate and contracts no longer than a year. That way you won’t end up paying for services you don’t need or use.
Don’t base your decision on fear
Employment law can appear complex and employment tribunals are expensive, so tribunal indemnity insurance can seem like an easy way for SMEs to gain peace of mind. The reality is that there are many steps in the journey to an employment tribunal, and an employer who has sensible HR policies and procedures in place, and follows them, is at a very low risk of losing a claim. This all means that tribunal indemnity insurance policies are a substantial cost that offer SMEs little financial benefit.
Check if the HR support number is for a call centre
What does the supplier really mean by ongoing HR support? You wouldn’t take legal advice from a call centre, and you shouldn’t take HR advice from one either. When you speak to a call centre there’s no guarantee you’re getting an HR advisor trained in the area you’re querying, and you’re certainly not getting an advisor that knows your business well enough to offer tailored advice.
Ask if you get the same advisor every time you get in touch
Effective support is rooted in an ongoing relationship. You should have a named advisor or team of advisors that work with your business, who know you, your company and your objectives. If you speak to someone new every time, you’re always having to start at the beginning, and it makes for slow, arduous progress.
Confirm if support is provided on phone or email contact rather than face-to-face meetings
You should be able to have a face-to-face meeting whenever you want one – it’s the most effective way for your advisor to get a full understanding of your company culture. Avoid providers that restrict meetings in the interest of keeping costs down.
Ensure HR package and additional costs are clear
The fact is that many providers will only give you HR advice, leaving you to carry out the actual work. In fact, many clients come to us because they’re frustrated with a provider that ‘sits on the fence’ and ‘tells you what you can’t do, rather than what you can do.’ Avoid this situation making sure you’re very clear about what is and isn’t included, and what incurs extra charges.
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