In today’s fast-paced industry and growing gig economy, it’s easier than ever to outsource virtually every element of business operations. For many leaders, it’s not so much a question of can this be outsourced, but should this be outsourced? The pros and cons of outsourcing vary by industry and the specific type of outsourcing.
While outsourcing HR duties can take the pressure off of a small in-house team, some responsibilities should stay in-house. Knowing what to keep in-house is the tricky part. Here’s what should and shouldn’t be kept under your own roof.
Outsource: Payroll
This stuff is complicated and should be kept confidential. By outsourcing this HR responsibility, you limit access, keep it out of the office, and leave it to the pros. With so many reliable services, why not? Payroll services are often extremely user-friendly and manage tax filings, direct deposit, 401k plans, and more.
Outsource: Benefits
Negotiating benefits packages each year is time-consuming and confusing. Meeting the diverse needs of employees is tricky, especially with ever-changing compliance laws. Work closely with a service to ensure you’re getting what you expect, but allow someone else to do the heavy lifting.
Outsource: Recruitment
With the rise of online recruiting and application submission, many recruiters are left with a stack of hundreds of applications for any given position. Scanning for keywords and checking off boxes to verify if the candidate is qualified is simply a poor use of their time.
In a world where there are more job openings than job seekers, that stack of hundreds of applications may very well not have a single qualified candidate. Engaging passive candidates is a must, but it’s time-consuming and requires a specific skill set.
Giving over even partial control of your recruiting process requires a high level of trust. You’re trusting someone who doesn’t yet know your company culture, history, processes, leadership structure, and goals to bring on new employees. That can be stressful.
That’s why IQTalent Partners does things a bit differently. Partnering with IQTalent Partners means we’ll dive deep into what makes your company special. Taking the time to get to know our partners ensures that we find a great fit. At IQTalent Partners, we’re teammates, not contractors. Our no-commission, adaptable model allows us to provide quality over quantity. Our flexibility offers you the convenience of a billable hours system where you only pay for the services you need and only when you need them.
In-House: New Hire Onboarding
Aside from standard compliance processes, your internal onboarding process should be unique to your organization. After the necessary forms and trainings, onboard your new hires with a process that makes sense for your company culture. Ask current employees what they wish they would have known when they first started and how new hires can easily assimilate. The fresh ideas of a consultant could be helpful, but ultimately, your team should do what makes the most sense for your organization. Keep an eye on best practices, but this process should be crafted in-house.
In-House: Corporate Culture
Similar to company vision and mission, corporate culture is owned by those who create it and live it every day. No amount of briefing could replace being an employee who contributes to culture. This is why artificially created company culture by an outsourced channel is doomed to fail for HR. Rather than hiring a firm to shift company culture, work with your leadership team to pinpoint the best and worst components of your company’s culture. Create an incremental plan to strengthen the best parts and modify the negative components of your culture. Include several small SMART goals to monitor progress. This is no small job, but you’ll find there’s no other effective way to alter company culture than to do so within the organization.
In-House: Termination management
No one enjoys terminating an employee. Given the often-uncomfortable nature of these meetings, it’s tempting to lay this burden on someone else. Resist that temptation. Even when things don’t work out, employees deserve a face-to-face conversation with someone who fully understands the situation.
Termination meetings should be handled delicately for several reasons. An employee who is let go may not have positive things to say about their former employer. What is said during a termination meeting could determine whether or not that former employee chooses to post a negative review online. Protecting your employer brand is imperative, and you can’t do so if you’ve outsourced this HR responsibility. Additionally, there is a slew of compliance and safety issues to be considered when terminating an employee. These sensitive matters should be in your hands.
This article was originally published on the IQTalent Partners Blog.
About Chris Murdock:
Chris Murdock is the Co-Founder and Senior Partner of IQTalent Partners. Chris has over 12 years of executive recruiting experience and leads search execution and client relationships along with supporting searches across the firm. Prior to Founding IQTalent Partners, Chris was a sourcer with Yahoo!’s internal Executive Recruiting team in the corporate offices in Sunnyvale, California. Previous to Yahoo!, Chris was an Associate in the Menlo Park, California office of with Heidrick & Struggles, where he recruited for software, hardware, professional services, and semiconductor clients. Before Heidrick & Struggles, Chris worked in the Retail Practice of TMP Worldwide in Atlanta, Georgia. While with TMP Worldwide, he worked on CEO, General Merchandise Manager, and various VP and Buyer level searches. Chris earned a bachelor’s degree from Vanderbilt University.
