The company has decided to switch to HR administration outsourcing, and HR team faces the task of determining which option to choose, the volume of services needed and the services model. In this article, we offer some guidelines to minimize process losses when transitioning to HRA outsourcing.
There are three common HRA service models:
1. Remote HR Administration - the outsourcing company’s specialist supports HR administration processes remotely.
Advantages:
- the most cost-effective option
- service continuity owing to employee replacement during absences
- constant supervision of the manager
Considerations:
- employees interactions remain on the client’s side
- management of HR documents prepared by the provider remains the client's responsibility
- the outsourcing specialist’s involvement in the company's internal HR processes is minimal
2. On-Site HR Administration - the outsourcing company’s specialist performs all HR administration processes on the client's premises.
Advantages:
- all requests are handled in real-time
- all interactions with the company’s employees are the responsibility of the outsourcing company
- the outsourcing company specialist is fully involved in all internal HR processes
- HR documents management is the responsibility of the outsourcing company
Considerations:
- the most expensive option
3. Hybrid option of HR Administration - the outsourcing company specialist performs all HR administration processes remotely with recurring visits to the client's premises to manage documents and interact with employees.
Advantages:
- being a medium-cost service, this option provides for the responsibility of the outsourcing specialist for the HR documents management
- service continuity owing to employee replacement during absences
- constant supervision of the manager in the part of remote HRA processing
Considerations:
- medium involvement of the outsourcing company specialist in internal HR processes
- major part of interaction with employees remain the client’s responsibility.
To make the right decision on the outsourcing model, HR team should analyse the current HR processes and answer a series of questions:
- Which HR processes are you ready to outsource?
- What type of interaction is expected between the outsourcing specialist and the company's employees?
- How comfortable are you and your company with remote interaction?
- How is HR document flow managed?
- Does the company have resources (employee on your side) able to support offline processes?
By answering these questions and considering all the advantages and nuances of each option, you can choose the most suitable model based on your budget, process specifics and business needs. Our specialists can guide you and help to select what is best for you and your company.