Choosing a partner to provide HRO is no small consideration. At a time when nearly every major business process initiative is being scrutinized by boards and shareholders, you want to ensure your time and money are invested in a productive relationship.

Expertise

• • Consider whether the HRO partner has vertical industry expertise. The chances of a successful, long-term working relationship are much greater if the HRO partner fully understands the unique aspects of the client’s industry, including the labor pool, government regulations, union rules, and legal issues.
• Similarly, when dealing with HR issues and functions, the number of employees in the organization is a major factor in the equation. Also the HRO should have expertise in benefits,payroll, employee training, employee relations, regulatory compliance and other HR functions.

Reliability

• Having a reliable HRO partner goes a long way towards ensuring that corporate goals are met. For instance, an HRO partner that has a reputation for reliability will respond promptly when problems arise, and deliver on all the promises laid out in the outsourcing agreement.
• Often you can get a sense of how reliable a potential HRO partner will be during the RFP process. It is also a good idea to solicit feedback from other clients and if possible meet the team of professionals that will actually provide the outsourced services.