How to get the most out of outsourcing strategic HR services
Outsourcing traditional human resources (HR) services is increasingly common. According to Inc. magazine, some 85 percent of companies now outsource at least some of their human resources functions. It is easy to see why. A company wants to stay focused on its core business. It is much more efficient to leverage the expertise of others for transactional HR services like payroll, health care and retirement benefits.
More recently, strategic HR services such as recruiting, hiring, compensation, risk protection and compliance are being outsourced as well. The reasons are the same—companies don’t want to manage these services themselves, particularly as compliance requirements become more and more complex. Professional Employment Organizations (PEOs) have emerged in response offering companies “one stop shop,” for their HR needs.
However, strategic HR services are more sensitive, and when it comes to hiring and retaining the best employees, and complying with local and federal laws, miscues can be costly. As a company grows, it needs more than a vendor. It needs guidance.
Global Upside offers HR consulting services to provide this kind of guidance. We offer growing companies with evolving HR needs access to a world of expertise through a single, experienced point of contact who can facilitate and direct the implementation of state-of-the-art HR programs across disciplines. The company gets a dedicated, experienced HR director who understands the company’s needs and the most effective ways to meet those needs.
This kind of guidance becomes especially important when a company eyes international expansion. When a company crosses borders, the HR needs change dramatically. Employment terms, benefit plans, compensation expectations, and compliance requirements are different from country to country. Internal HR departments and PEOs alike are rarely equipped to understand and administer programs in multiple nations.
Operating in over 150 countries, Global Upside offers companies a VP level human resources executive as a single point of contact to build a successful global HR program. This is your partner who will guide you through the maze of options to get the right solutions to grow your business. In many cases, employees assume that their Global Upside contact is an internal employee.
Need an offer letter for a new hire in the U.K.? Not a problem. Need to hire the same position in Brazil and ensure that the comp plans are equitable? Done. Need the right benefits package to compete here in the U.S.? Absolutely.
The disadvantages of the PEO model are a combination of high administrative fees, uneven experience levels at different functions, and impersonal service. Employees are given an 800 number to call for help, where the person answering the phone is not likely to have personal knowledge of the individual or company. Also, a company may require compliance assistance infrequently but are paying for it year round The “one stop shop” can feel like a “one size fits all” experience. Additionally, PEOs do not provide any on site support if needed.
Outsourcing strategic HR services can save a company time and resources, and add tremendous value when done right. Because every company is different, it is important for an HR services firm to have a strong relationship with the companies it serves. Global Upside offers a dedicated human resource consultant who can oversee all or part of a company’s HR lifecycle. Instead of a cookie cutter program, you get just the resources you need, when you need them, and where you need them.