Outsourcing Companies - What Are The TOP 5 Things To Look For?

July 15, 2009 - PRLog -- So, you've made the decision to hire an HR outsourcing provider to help your company cut costs, increase productivity and enhance its bottom line. While that initial decision is a step in the right direction, figuring out which company to use for this endeavor can be a bit less cut and dry. As the popularity of HRO (human resources outsourcing) has started to soar, so has the number of agencies that specialize in providing assistance. As noted by Norman LeClair, CEO of Corban OneSource http://www.corbanone.com, "[Many] companies are looking to outsource their HR, though we have been an HRO leader for well over a decade now, HR outsourcing is still a new concept to some companies and they may need help in identifying what to look for when searching for a great HRO."

Fortunately, there are some concrete things to look for when seeking out a company to help with benefits administration outsourcing, payroll outsourcing and other forms of HR outsourcing. Below, we have highlighted five of the most essential things to look for when hiring an HR outsourcing provider; by keeping these tips in mind, your company will be that much more likely to achieve success with its outsourcing - and the advantages that it will realize will be that much more effective.

Experience Matters

As with many other situations, the amount of experience that any given company has in terms of providing human resources assistance matters a great deal in terms of how they can help yours. With experience comes credibility; these two characteristics are by no means mutually exclusive, and keeping that in mind is incredibly important in terms of HRO success. Try to choose a company that has been in business for a respectable length of time - this not only signifies experience, but it helps you weed out opportunistic agencies that may have recently sprung up in response to the human resource outsourcing boom.

Adaptability Counts

A great human resources outsourcing provider will be willing to go the extra mile to fit your needs - working with them should not be a chore in which your company needs to jump through hoops to get anything accomplished. Whether its payroll services or general HRO functions, the company that you select should be willing to take the time to get to know your company's specific needs - and be more than happy to adapt and provide custom solutions when addressing your concerns. Remember: above everything else, you are their customer and they should be willing to work hard to keep your business.

Cutting Edge Technology Is Key

In this day and age, any company that expects to remain competitive and to satisfy its customers absolutely must be taking full advantage of the latest technology. The HR outsourcing company that you ultimately select should be comfortable with technology and use it to make life easier and its services more user friendly. For instance, a benefits administration outsourcing provider should offer a comprehensive, web-based presence that makes doing business with them that much easier. If an HRO provider that you're looking at seems behind the times, it will probably remain that way - and won't offer you the best service available.

Customer Retention Is Essential

Whenever possible, try to get an idea for how well the human resources outsourcing company you are looking at holds on to its customers. Do they have testimonials available from longtime customers, or do most of their clients seem to be relative newcomers? Are they willing to provide you with references from well-established clients, or do they seem to be lacking in that department? A customer retention of less than even 90% spells trouble, and you should look to another payroll outsourcing company in such instances.

Who Are Their Customers?

Always look for an HRO provider that caters to companies of similar size and scope to your own. If you run a small business, for instance, it is best to stick with an HR outsourcing provider that tends to cater to small to midsized companies. Choosing a human resources outsourcing provider that works with companies similar to your own means that they are going to be more familiar with your most pressing concerns - and that you won't have to waste a lot of valuable time cluing them in about how a business the size of yours operates.

The Right HRO Provider For Your Company Does Exist

In addition to all of the points highlighted above, you should keep one caveat in mind: bigger isn't always better. Larger HR outsourcing providers don't necessarily provide more effective services. In fact, smaller providers tend to offer more personalized, one-on-one services that are more focused on excellent customer service practices. The likelihood of reaching a live person as opposed to a recorded message is far greater with smaller HRO providers than with massive ones - and you're likelier to be assigned a contact person instead of nameless, faceless operators. Above all, though, take the time to find the provider that is best for your business, and everything else will fall into place.

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Senior HR Consultants Inc. is a group of HR Professionals that average more than 25 years of experience per Consultant. Our primary goal is to help mid-sized companies look at ways their HR Department can help thier company become more profitable.