Tuesday, February 15, 2011

Elevated HR Solutions: Selecting an HRO

So here you are: You've grown your organization to a pretty good size, where it's evident you could use some help when it comes to the administration and support of your employees.  You are officially presented with 2 choices - hire an HR manager/advisor and officially proclaim an HR department OR bring on an Human Resource Outsourcer (HRO). 

Here are some things to keep in mind if bringing on an HR Manager/Department:

1.) Someone on staff now has intimate details of your employees: From salary to performance to possible terminations.  You need to trust this person implicitly and they need to know how to temper internal relationships and friendships.  Conversations may happen and information that shouldn't be shared often is.

2.) Your overhead suddenly goes up exponentially with a full-time salary on board.  While they are providing operational efficiencies, it's a hard one to quantify in real numbers.  Plus, they get vacation and benefits and training on TOP of their base salary.

3.) When an HR manager recommends programs, they usually do so based on their own wants and experiences. As an employee it's pretty hard to not be biased.  I remember really pushing for a maternity top up program and a Health Spending Account...and I had all the back-up in the world that supported my claims too!

All of this goes away when you bring on a Human Resource Outsourcer (HRO).  However, it wouldn't be right if I didn't say to take precautions with them as well.  Here is a list of questions you should ask when looking at an HRO:

1.) How hands-on do you want to be / can you be?

2.) Do you have options or are you a “one-sized fits all” solution center?

3.) Do you provide the basics or can you help with implementation?

4.) Do you want to be purely strategic or purely administrative?

5.) Do you offer solutions for employee questions as well as management support?

6.) Do you provide reports and statistics that will help with budget and planning seasons?

7.) Do you offer an employee benefits solution?

8.) Do you have a payroll solution?

The answers should be in alignment with what you need and what you want.  It's tough to know what you don't know - but a good HRO will be able to walk you through how to determine what you need, recommend how it can be done and of course, do it all at your pace.

And yes - I'm an HRO with clients all over Western Canada!  I support employers with 3 to 125 employees.  On top of it - I love what I do!

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