WHO TO GO WITH?
Human Resources Outsourcing (HRO) is used by plenty of companies nowadays, especially multi-national
organisations. It’s clearly become a trend in modern management methods. But managers must still identify and
select a reliable HR vendor, so what is the best approach? The following are a few ideas for you to consider.
1. Strategy: Analysing outsourcing need and outsourcing decision
Analysis is a necessity in order to make sure a perceived outsourcing need is truly critical or not. A comparison should
be between in-house self-management and outsourcing, in terms of quality, efficiency, cost, and even risk from both
sides – the company and the vendor – regarding rapid technological development and confidentiality of information.
This will give you the grounds to make the right decision. Your analysis will also give you the criteria for selecting the
vendor most appropriate to your needs.
2. Bidding procedure
When selecting a vendor, a company would normally invites three or four bids, depending on the size of the tasks
needed. The bidding process usually includes the following elements: the bidding procedure, the scope of the tasks,
the proposed cost, the timeline for submission and the method of selection.
3. Service quality and branding
Aside from an analysis to evaluate a vendor’s quality, in many cases a reference from other clients already using their
services is worthwhile.
To conduct an accurate evaluation, you need to create an analysis table and template so that your marking for vendor
is consistent. This will guarantee precision in your analysis results.
4. Study a vendor’s processes
Expertise in managerial processes will shows you where a vendors’ strength lies. A logical and scientific system
provides consistent service quality throughout all operations. A process and system with many control points also
helps to maximise productivity and minimise any shortcomings.
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HR CONSULTING
CORNER
HR CONSULTING
CORNER
HR Consulting Corner is monthly composed in a Question & Answer format by HR consultants of Talentnet Payroll
& HR Outsourcing Services. Our purpose is to support readers & enterprises to understand more about HR trend in
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5. Quality control
It is essential for a company to require a vendor share an experience regarding their ability to control quality. You can
also make a case study to evaluate what the vendor’s strengths and weaknesses are and to see what their solutions
may be if certain issues arise.
6. Flexibility of solutions
A competent vendor must be flexible in their solutions. Questions should be asked to comprehend their competency in
complex tasks, and you can check their adaptability.
7. Pricing
Pricing for the service will depend on the tasks involved and their complexity, the contract term, and the effort and
expertise the vendor must invest in meeting client needs. You should consider the vendor’s branding and reputation
and the benefit to you from engaging their services. Importantly, you need to properly determine what the total
expense will be. Mutual benefit and the long-term relationship is an important consideration for both sides when
negotiating the price.
These are some of the key areas managers must carefully consider before selecting a vendor for their HRO needs.
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