Edu BlogFebruary 23, 2022

When choosing an HR services provider

Six things to consider when choosing an HR services provider

Human resources services provider

Your client base is growing and your business is expanding, that’s great! But the change in processes that usually accompanies this growth can cause uncertainty among your employees. As you focus your attention on enhancing production and operations efficiencies, it’s just as important to ensure that your human resource processes do not fall by the wayside, and that your employees are thoroughly invested in the change taking place in the company.

Partnering with an HR services provider will certainly help ease the burden on your human resources department and allow you to focus on your business objectives, but with so many HR services companies out there, how do you go about choosing one that will give you the level of support your company needs?

To help you make an informed decision, here are six important things to consider when choosing an HR services provider.

  1. Level of service

The more comprehensive the provider’s HR services are, the better. Partnering with a company whose services cover the entire employment lifecycle will significantly benefit your business over the long term.

Core functions such as payroll, legislative compliance and database management are key, as you want to be sure that the provider can deliver a hassle-free experience in which all your human resource functions work seamlessly with one another.

The best way to gain insight into the HR service provider’s scope of expertise is to ask questions. Do they offer human resources generalist support, or specialise in a specific field? How many human resource professionals will be working with your organisation? Will the HR services be provided through a consultant, temporary human resources contractor or part-time human resource assistant? Are consultations done on site, virtually, or both? How quickly can they respond to any questions you may have and is there a help desk or hotline for urgent matters? What recourse is available if your requirements are not met as originally promised?

  1. Pricing model

How much you choose to invest in outsourced HR services will depend on the size of your organisation, the scope of your human resource requirements and available budget.

The Covid-19 pandemic has shown that change can happen overnight, when you least expect it. As your company evolves so will your human resource requirements and your HR services partner needs to be able to adapt accordingly.

Look for an HR services partner that can provide a full suite of human resource services on flexible outsourced terms. Instead of paying for a bundled package, find out whether they can customise their offering according to the HR services you need. Also ask if you have the option to cancel their services at any time, should the need arise, and whether this will involve any cancellation fees.

  1. Track record

Your employees are the heartbeat of your business. Consequently, when it comes to choosing an HR services provider, you want to partner with one who has a proven track record of success. Request a list of past and current client references and follow up with these companies. Ask about the quality of work provided, and the benefits the organisation gained from the relationship.

  1. Credentials

An essential component of your HR services vetting process is checking that your potential provider has all the necessary credentials and certifications for each service they provide, and that they have the resources in place to stay on top of all human resource legislation changes and help you act on them timeously.

If their footprint extends to other countries, they also need to know about the different legislative and compliance requirements – and any changes that occur – in each region.

  1. Cultural fit

Appointing an external HR services provider to manage your human resources function will impact your organisational culture. Look for one that will not only respect your culture but also your values system. As you go about your selection process, think about what it will be like to work with the HR services provider and whether you will be able to place your trust in them.

  1. Data privacy and security

The security of your organisation’s data is critical in today’s digitised world. In South Africa, HR services providers are bound to protect data privacy and security in accordance with the Protection of Personal Information Act, while the General Data Protection Regulation is applicable in Europe.

Your chosen HR services provider should be completely transparent about the data security procedures they follow and how they ensure that your employees’ personal information will not fall into the wrong hands and their privacy violated.

No two HR service providers are the same, but taking the time to dig a little deeper and thoroughly evaluate the various offerings available will ensure you select the best fit for your organisation.


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