By BLR Founder and CEO Bob Brady
In a poll at the last HR Technology Conference our CEO attended, only 2% at one session said they are considering more outsourcing of HR. But wasn’t outsourcing supposed to be the future of HR? Here are Bob’s thoughts on the matter.
Well, guess what! The wave of the future may be more of a ripple. Outsourcing, the great savior of HR, just isn’t catching on as forecasted, it seems.
Self-service HR is in a similar state, at least for these attendees. What’s surprising is that these HR managers—mostly from larger organizations—are, by the fact that they attended the conference, committed to technology solutions. (It is, after all, an HR technology conference.)
The technological phenomena known as Web 2.0 and SaaS (Software as a Service) could be true “game changers” that drastically revise the way we approach HR in coming years. But we’re not there yet. Conference speaker Jason Corsella, from Knowledge Infusion, cautioned that we are several years away from mass adoption.
So, what is behind this? Is outsourcing dead on arrival? I don’t think so, but we are at a very interesting point.
The Technology Life Cycle
What we are seeing is what always happens when new technology comes along.
At the earliest phase, the users are hobbyists. They are true believers so enthusiastic that they’re willing to deal with frustrations in order to use it. Next come the experts: They profit from the experience of the hobbyists who helped the developers work out the kinks. These experts bring a lot of attention and skill to the programs. They have to, because the programs are still not ready for the general population.
Finally, once all the kinks have been worked out, then comes mass adoption.
We’ve seen this sequence with things like cell phones, PDAs, and PCs. When they first came out, only geeks used them. Geeks don’t mind if they have to replace their gadgets every year. That’s part of the fun. And they’re willing to put up with confusing interfaces and bugs. But when it comes to the masses, things have to be easy and obvious.
That’s where we are with a lot of the “outsourcing” on the Web. It is possible to do it, if you are willing to work at it. Some people are now. But in a few years, as the kinks get worked out, we will see greater and greater adoption.
Should You Wait or Jump In?
So should you be standing around and waiting? It depends on your needs.
If you have lots of people coming on board, and/or lots of people management problems that can be solved through technology, it is probably worth it to look for solutions today. If your needs are more modest, look for small-scale solutions targeted directly at those needs.
I went to one presentation at which a panelist from a large company objected when someone said he didn’t have talent management software. “We use the ’Microsoft solution (Excel and Word)’,” he said. Ten or 15 years ago, their power was awe-inspiring.
Well, guess what? They still work well for lots of solutions.
That’s my e-pinion. I’d love to hear yours. E-mail me at Rbrady@blr.com.
For over thirteen years I worked for a company in the HR outsourcing field. The number of small to medium size businesses that subscribed to the services were approx. 200 companies, representing 2,000 employees. Four years later, that business has over 3,500 companies representing over 4,500 employees nationwide. The service provides a full spectrum of HR services, including and not limited to Workers’ Comp Insurance; Cafeteria Plan Benefits, HR Representation and services, Payroll and many more. My position with the company was a Client Service Account Manager and I worked with the business owners to assist them in all aspects of HR in dealing with their employees. Managerial training, employment hiring, termination processes, and others. My clients that were with the services are still there. I see them from time to time at various community events and them are still more than satisfied with the services they receive from outsourcing their HR responsibilities. They did not terminate employees when the services came on board, they were able to re-direct those employees responsibilities to more advantageous tasks such as debt collection from their clients, customer service strategies, etc. Outsourcing HR is probably the best thing a small to medium size business can do to affect their bottom line, (5 -500 employees). If your subscribers are afraid they may loose their jobs due to outsourcing, tell them that the HR outsourcing will only give them the support most HR Managers so desperately need, and they are kept abreast of all the changing laws as well, unlike so many smaller companies.
Check out NAPEO: National Association of Professional Employer Organizations. They have very strict requirements to meet to be a member. Check them out, you’ll be very pleased.