5 Questions to Ask When Vetting HR Companies for Outsourcing

There are 30.2 million small businesses in the US. Many of them decide to outsource their HR tasks. You may decide to outsource this task too.

HR companies can help your business grow by taking the responsibility off of you. But you don’t want to hire just any service.

Be sure to ask these five questions of any company you are considering for your HR needs.

1. What Services Do You Offer?

Before you start vetting companies, you need to determine what your needs are. Create a list of “must-haves” and a separate list of “nice to haves”. This will help you narrow down your options to the companies that offer the services you need.

Share with potential companies what your needs and goals are. This way, you can assess if the service can meet your needs. Don’t forget to discuss future goals; you’ll want to ensure the HR company can grow with you.

2. How Do Your Services Work and How Are They Delivered?

First, you need to discuss what the process is to become a client. Implementation needs to be a smooth process. It would be best if they can integrate into your current software.

Once on board, how will your employees work with the HR service? It needs to be a smooth and easy process. There needs to be a centralized portal that everyone from your company can log into as a single resource.

This is especially true if you have employees working in multiple offices.

3. What Metrics and Reporting Can They Provide?

Ask what sort of reporting and metrics the company can provide you with. If they are going to manage your HR, they should be able to provide you with analytical data about your HR processes.

Find out how often you can get reports. Can you have them in real-time, any time you wish? Or is there a limit and you’ll be charged extra for reporting?

4. What Kind of Experience Do They Have?

You need to choose a company that has experience working with businesses of your size. They need to understand your unique needs and challenges.

Find out how long the company has been in business and how many of their clients are similar to your company.

During this conversation, you can also ask about their knowledge of both state and federal law.

5. What Is Their Pricing?

This shouldn’t be the main focus of your decision, but it will play a part. Before you start looking for an HR company, you need to know what your budget is. This way, you can determine if a company can fulfill your needs at a price you can afford.

Do they offer package deals? Do they charge by the hour for service? Find out how they will bill you. It could be on a weekly or monthly basis.

Some companies require that you pay a retainer or down payment before they provide any service.

Start Vetting HR Companies

Once you figure out your budget and needs, you are ready to start vetting HR companies. Find out what your different options can do for you and how they will integrate into your current business processes.

Select the company that provides you with the services you need at the price you can afford.