FM Analysis
years to meet the increasingly sophisticated demands of the workplace. These include reward or compensation and benefits professionals as well as experts in the field of diversity and HR technology.
There can however be disadvantages to outsourcing. Those frequently cited are a loss of control of processes and data, security risks and hidden costs. Whilst business owners should be aware of these, a robust service level agreement (SLA) can help to mitigate many of the risks inherent in outsourcing.
What, if any, are the risks in outsourcing human resources?
In some cases, the outsourcing arrangement fails because the SLA hasn’t been specific enough in spelling out the responsibilities of both sides and/or the service delivered doesn’t live up to the client’s expectations. Business owners should ensure that the SLA is robust and fit for purpose, but they should also understand that engaging an outsourced service provider doesn’t mean absolving themselves of total responsibility for HR. Any outsourcing arrangement has the best chance of success when there is a healthy and respectful two-way relationship in place.
Your company [plusHR] offers expertise in HR strategy, consulting and Human Resources outsourcing, working with organisations such as Channel 4, Southern Water and HarperCollins. Can you discuss how you would do this?
plusHR has developed a set of diagnostic tools to help clients to identify how well they meet five key criteria for organisational success – we call them performance factors - clear goals, people who care, managers who manage, simple processes, and fair rewards. With various interventions including board level workshops, training courses, engagement surveys and process reviews, we help our clients to understand how the energy and talent of their people can be directed to achieve success.
Our outsourced HR Services range from HR administration and payroll through to recruitment, employee relations and employee engagement. We have a comprehensive service level agreement for retained services, with regular client reviews
to ensure we maintain the highest standards, and a flexible team of experts who can be called in by the client just when they are needed, to keep costs to a minimum.
plusHR has developed a set of diagnostic tools to help clients to identify how well they meet five key criteria for organisational success – we call them performance factors - clear goals, people who care, managers who manage, simple processes, and fair rewards.
What are the common challenges faced by your clients?
Our clients range in size from 10 employees to 250, and operate in sectors including financial services, hospitality, media, technology, construction, publishing and charities. The challenges that they face are often specific to their sector, and may include high employee turnover, complex reward arrangements, or external regulation. Our team have a breadth of experience which enables them to support each client in their specific requirements and in line with their organisational culture. What they all have in common is a desire to employ, reward and develop their employees, in a difficult economic climate. By keeping the costs of HR to a minimum, their resources can be directed to where they are most required effectively.
How has/can your firm assist the client when such challenges arise?
Keeping the organisational ‘ship’ sailing smoothly is really important when the economic climate is challenging. Attracting and retaining great people is the key to any organisation’s success. We offer a recruitment service which typically costs our clients a third of the traditional agency fee,
whilst representing the client to candidates as though we were working in-house. Our reward experts can advise on how to make a limited salary review ‘pot’ go further, ensuring that high performers are rewarded and retained, ready for the economic turn-around and future growth. Our administration and payroll team ensure that factors of pay and benefits are accurately applied, and their customer focussed approach enhances the employees’ perception of their workplace. Our employee relations advisors ensure that line managers have robust but pragmatic advice about how to deal with people issues, keeping employees engaged, and avoiding costly Employment Tribunals.
If you are able to do so, please detail any significant clients/cases undertaken by your firm in the past year.
We have recently been announced as the first supplier chosen by the newly-formed weve – an m-commerce joint venture between Everything Everywhere, O2 and Vodafone that will provide a unified smartphone-based service offering an alternative to cash, credit cards or loyalty cards for in-store shopping. We will be providing our full range of services, including Recruitment, HR administration and payroll and HR management. As a start up, we have offered them a flexible tariff to reflect their needs as they grow, ensuring that they keep costs to a minimum, whilst having access to the highest quality administration and advice from the outset.
Have there been any legislative changes recently (12 – 24 months)? If not, what changes would you like to see happen?
Legislative changes such as new maternity entitlements, changes to employment protection, and the latest government idea to enable organisations to offer shares in exchange for the surrender of key employment rights feature in the news and media. Small and medium sized employers don’t have the time or focus to find out what it means for them. Our clients know that we will monitor the legislative environment, and update them on any actions required, as well as giving them practical advice about how to stay on the right side of the law. This gives them the peace of mind and time to focus on their core business.
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