Benefits and Compensation

Tips for Combating the Pitfalls of Outsourcing

In yesterday’s Advisor, we pondered the pitfalls of outsourcing; today, what you can do to avoid them.

As the list of outsourcing pitfalls is quite extensive, it pays to be careful when opting to outsource. Following the suggestions below will help ensure that you get all of the advantages of outsourcing without all of the problems.

  • Have a defined process for choosing the best provider.  Before you begin searching for a provider, clarify what services you want, what your expectations are, what your budget is, and how you will evaluate providers.
  • Fully analyze the provider’s capabilities in advance. You need to be sure from the outset that they can deliver what you need. For sure, talk to current users.
  • Plan carefully. Make sure both sides are in complete agreement about the expectations, timing, and processes. At the same time, have realistic expectations.
  • Provide plenty of information. You want your expectations well understood from the outset. You don’t want to hear later, “Oh, we had no idea there were so many records; we didn’t know you needed that kind of report.”
  • Ensure the contract covers contingencies. Don’t leave important items to chance. Exact wording of the contract is important.
  • Maintain separate contingency plans. Separately, have contingency plans in place in the event that expectations are not met. What’s the downside of the outsourcer not coming through? Are you shut down, or is there just a delay in getting what you need?
  • Communicate frequently with your outsourcer.   Be sure everything is on target. Set milestones, if appropriate, so that major problems are discovered quickly and can be addressed. Communicate frequently internally as well to manage expectations.
  • Evaluate. Establish your criteria and measuring schedule to ensure that your goals are being met.

Wellness? You know you should be doing it—Start on October 14, with a new interactive webinar, Winning Wellness Plans: How to Boost Employee Health and Reduce Health-Care Costs. Learn More.


Considerations for Outsourcing

In a BLR webinar titled "HR Outsourcing and Offshoring: How to Manage the Legal, Operational and Ethical Issues of Third-Party HR," Robin M. Throckmorton, MA, SHPR, president at Strategic Human Resources, Inc. in Cincinnati, Ohio, offered some insights about outsourcing HR functions. Below are some potential considerations.

  • Facing the dilemma of costs vs. service.
  • Recognizing when technology becomes too costly.
  • Seeing the need to focus on HR strategy rather than nuts and bolts.
  • The opportunity to access outside expertise.
  • The business case for outsourcing becomes apparent.
  • You have special needs that can’t be met internally.

In addition, says Throckmorton, ask yourself:

  • Is a given HR function one of your core competencies?
  • Is what you are offering internally “best in its class”?
  • Does your internal operation maximize service levels and efficiencies while minimizing costs?

What about wellness? Is that outsourceable? Sure, but the big question is, are you doing it? A recent report indicates that employer-sponsored wellness programs can reduce costs related to sick leave, workers’ compensation, and disability compensation by as much as 25 percent. ROI is often about 3 to 1.

What can you do to implement a new program, or breathe new life into an existing one?

Fortunately, there’s timely help in the form of BLR’s new webinar—Winning Wellness Plans: How to Boost Employee Health and Reduce Health-Care Costs.

Join us on October 14 when a wellness program expert experienced in managing and overseeing the delivery of programs will use case studies, best practice tips, and more to educate you on how to design a successful program for your organization. In just 90 minutes, you’ll learn the key components of successful workplace wellness plan design.

Register today for this interactive webinar or find out more.


Wellness plan under the weather? Join us October 14 for a new interactive webinar, Winning Wellness Plans: How to Boost Employee Health and Reduce Health-Care Costs. Earn 1.5 hours in HRCI Recertification Credit. Register Now.


By participating in this interactive webinar, you’ll learn:

  • How to start an employee wellness program.
  • Screenings, information sessions, surveys, and other elements that make a successful strategy,
  • Common mistakes when developing a wellness program,
  • How to identify worksite wellness programs that can help improve employee productivity and morale,
  • How workplace wellness programs can impact healthcare costs and improve your bottom line,
  • Case studies from organizations that have developed successful wellness programs,
  • And much more!

Register now for this event risk-free.

Tuesday, October 14, 2014
1:30 p.m. to 3:00 p.m. (Eastern)
12:30 p.m. to 2:00 p.m. (Central)
11:30 a.m. to 1:00 p.m. (Mountain)
10:30 a.m. to 12:00 p.m. (Pacific)

Approved for Recertification Credit

This program has been approved for 1.5 credit hours toward recertification through the Human Resource Certification Institute (HRCI).

Join us on October 14—you’ll get the in-depth Winning Wellness Plans: How to Boost Employee Health and Reduce Health-Care Costs webinar AND you’ll get all of your particular questions answered by our experts.

Find out more

Train Your Entire Staff

As with all BLR/HR Hero® webinars:

  • Train all the staff you can fit around a conference phone.
  • Get your (and their) specific phoned-in or e-mailed questions answered in Q&A sessions that follow each segment of the presentation.

Find out more

1 thought on “Tips for Combating the Pitfalls of Outsourcing”

  1. You should also make sure you’re familiar with your states laws and regulations regarding dual or multi-employer liability.

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