Outsourcing HR

Posted on August 19, 2008 by podcaster.
Categories: Business, Education, Technology.

A good friend of mine has worked in Human Resources all her professional life. At the company where we worked together for a couple years, she was taking night time college courses to get her Master’s Degree in HR and the company was helping her with the tuition for the classes. She was so proud to finally graduate with her Master’s and I must say that it was quite an accomplishment, as she not only had a very demanding job at the company, with long hours there, but she was also mother to three children in school and wife of a musician who traveled quite a bit and because of his touring schedule he would leave her alone at home with the kids for weeks at a time.

We were all shocked and amazed when our company made the announcement that the Board of Directors had decided to eliminate the Human Resources department and outsource those tasks as part of our staff reduction and reorganization plans. My friend was laid off and we were all instructed on the new processes for HR support within our departments. After the initial shock of losing a friend and co-worker, I must say that the new processes are not bad.

My company found that most HR functions can be easily standardized, and outsourcing makes financial sense. There are good companies who can step up and take over the HR processes, like payroll services, handbooks, insurance forms, etc. by using computer programs and the internet.

If you are not familiar with outsourcing HR, you might be interested in reading the website of a Professional Employer Organization (PEO) to learn what they can do for your company or organization. Of particular concern to a lot of employers is compliance with the new immigration laws and hiring requirements. National PEO has a great program to E Verify new hires and rehires, including follow-up on discrepancies, auditing the required forms, and being available to answer questions.

There’s a lot of responsibility with administering Human Resources. My friend has found another position and is very happy with her new company as VP of HR, and our company is happy with the move to outsourcing their HR. So it was a win-win change for all.

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