Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Human Resources Outsourcing


Published on

Collinson Grant has been helping clients with all aspects of HR for more than 40 years. We provide a fully outsourced human resources function that manages people more effectively at lower cost.
You can select which tasks you want to outsource fully and those you wish to retain in-house. Typically, we reduce the costs of running an HR function by 20%. Outsourcing also puts a wider range of specialist resources at your disposal.
Our clients include some of the UK's largest care home operators, the country's largest provider of off-street parking, and a distribution business with a turnover of more than £1.4bn. We also work for owner-managed businesses and charities with fewer than 100 employees.
This document describes how we do it.

Published in: Business
  • Be the first to comment

  • Be the first to like this

Human Resources Outsourcing

  1. 1. Human resources outsourcing
  2. 2. Contents An overview of our support on human resources 1 Why use Collinson Grant? 2 Managing human capital 3 Drivers for change 4 HR outsourcing: Collinson Grant's proposition 4 HR strategy and HR measures 5 Payroll 6 Executive recruitment and selection 7 Employment law support 8 Administration 9 Benefits and reward 10 Talent management 11 Performance management 12 Employee relations 13 Resource management 14 Employee value proposition (engagement) 15 Organisational design 16
  3. 3. 1 An overview of our support on human resources We provide a fully outsourced human resources function that manages people more effectively at lower cost. Some HR services, such as legal compliance and payroll, are mandatory. Many others are only cost-effective if they produce clear and tangible benefits for the business and advance its strategy. Services that are not cost-effective are a drain on resources. Organisations have choices about whether to provide them and how. Outsourcing HR to Collinson Grant allows you to meet the needs of your business in the most effective way. We provide a full service: all the essential HR tasks and other optional activities that may be needed only infrequently. You can select which tasks you want to outsource fully and those you wish to retain in-house. Outsourcing reduces costs and puts a wider range of specialist resources at your disposal. A robust and responsive HR service We set out by understanding your strategy for managing people, or we help you to define it more clearly. It is important to know how operational managers view the HR department and what they want it to do for them. This provides the framework for designing a robust and responsive service. We clarify how the performance of the HR function is measured and its contribution to the business. Once this is confirmed we can work with you to specify the other components. For example: employment law support – advising managers on handling employment, disciplinary, and other day-to-day matters payroll and administration – running payroll services and associated administration benefits and reward – auditing existing benefits and rewards, testing what they offer to the business and employees, and designing new arrangements the employee value proposition – developing a model for testing and debate; understanding the company's 'brand' and its impact on recruitment and retention; creating the framework for assessing employees' views over time talent management – ensuring that there is an adequate pipeline of talent for senior positions, that managers reach their full potential, and that the business retains the skills it needs performance management – creating mechanisms to assess performance reliably; using competency frameworks and showing line managers how to use such tools effectively; confirming employees' personal objectives and aligning them with those of the company
  4. 4. 2 resource management – getting the right people into the right jobs; using workforce planning effectively; and improving productivity by allocating the staff effectively recruitment – recruiting and selecting managers and senior executives; psychological testing and coaching for managers; and managing recruitment campaigns organisational design – creating cost-efficient managerial structures; defining roles and accountabilities; maintaining accurate organisational charts; and plotting associated costs. Outsourced HR services should offer immediate savings and add value in the longer term. The discipline of confirming a service level agreement clarifies exactly what should be provided, how, when and for how much. It helps to determine how HR will be measured and what benefits it should provide. Clients draw on our extensive, practical experience in all aspects of managing people but pay for specialist skills only when they need them. Nearly all outsourcing agreements need some fine tuning. So we build in a probationary period to let the arrangements settle in and allow you to flex the resources accordingly. This ensures that value for money meets your expectations. Why use Collinson Grant? Collinson Grant has been providing HR services to clients for more than 40 years. Our experience extends across many sectors, including work for global, national and local businesses. We have particular skills in supporting multi- site companies whose operational managers often have little or no access to in-house HR advice. Our consultancy team covers all disciplines and includes a number of experienced employment lawyers. We help clients to get the best out of people and to sustain year-on-year improvements in productivity and effectiveness. We concentrate on understanding, controlling and reducing costs. We help to construct effective organisational structures, define accountabilities, and implement strong managerial and financial controls. Outsourcing is an important part of our approach. External HR support Outsourcing some or all HR services has advantages: cost saving or cost avoidance ready access to skills and experienced specialists no need to ask HR generalists to undertake work beyond their natural competence no need to employ specialists whose contribution may be required infrequently
  5. 5. 3 improved HR services the organisation is free to focus on core operational activities and adding value for customers. Managing human capital Effective HR managers understand the organisation’s overall goals as well as its day-to-day operational needs. They recognise that they are responsible for improving the performance of people, for sustaining skills in order to maintain performance and support growth, and for managing costs. The term human capital management describes how HR professionals picture themselves within an organisation and where they think their strategic priorities should lie. We can support our clients' HR activities or manage them in their entirety. We focus on the activities which will drive the organisation forward, specifically: HR strategy and measures Ensure HR strategy and outputs are appropriate Organisational design Maintain the optimum structure Employee benefits Trends in fixed and variable costs Recruitment Quality of staff, skills, and needs for training Pay and reward Retention, performance, availability, bonus Performance management Motivation, innovation, succession Development Talent management: training, competencies, succession planning, career pathways Employee engagement Ensuring balance in the employee value proposition (EVP) Employee relations Working in partnership Resource management Utilisation of resources Polices and procedures Standards, documentation, compliance, consistency, maintenance Information Communication, self-service, administration Recruitment Procedures, channels, cost-effectiveness Payroll Procedures, systems, suppliers Compliance Employment law, discrimination, health and safety procedures, suppliers, risks, costs To achieve the aims of the business and add value To remove transactional work; minimise the cost of nugatory work including external analysis
  6. 6. 4 Drivers for change We believe that there are seven main drivers: Reducing costs Opportunities to reduce transactional and overhead costs. Review of processes leads to improvements in productivity and cost-effectiveness. Improving quality and service Ability to use experts and more experienced staff for specialist tasks. Opportunity to set standards for improved quality and to use service level agreements to monitor and raise performance. Realigning resources Reallocation of resource from back office to front line. Eliminating non-essential tasks and bureaucracy. Benchmarking against peers and competitors Continuous improvement initiatives. Availability of data that demonstrate underperformance and provide targets for achievement. Restructuring the entire organisation Organisational change creates options and forces decisions about the management of core and non-core activities. Managers' time is freed to do work that adds value. Exploiting technology Application of database-driven, internet technologies to increase the speed and flexibility of communications and reduce the cost of routine transactions. Options to offer self-service facilities to employees for various HR activities. Managerial ambition – best practice Opportunity for ambitious managers to increase credibility by leading challenging, high-profile projects that save the company money, exploit best practice and free up additional resources. HR outsourcing: Collinson Grant's proposition A robust and responsive HR service There are two routes: both involve us making sense of the company's strategy for managing people or helping you to define it more clearly.
  7. 7. 5 Route 1 Collinson Grant's HR audit will assess your HR department, how it is perceived by the business, and its capabilities. This will determine where services could be provided more effectively or at lower cost. Route 2 You may already outsource HR services or be considering your options. Although we can look at a specific service or services (such as payroll), we believe there is merit in taking a broader look at all current HR services and interventions. The review would be undertaken by one of Collinson Grant's HR professionals who all have experience of managing an HR function, understand the profession from a practical perspective, and are aware of current best practice. We look at the organisation's strategy, how well the HR strategy is aligned with it, and whether it meets the requirements of the business. We explore the potential benefits of outsourcing, including increased efficiency and effectiveness, and cost reduction. Either of these investigation phases is offered for a cost of £300 plus VAT. In each case, we would spend two or three days with your business. The following sections cover the components of our outsourcing offer. We offer them separately, as clients tend to want to outsource some, rather than all, services. HR strategy and HR measures The HR function needs to be able to show that its efforts are adding value and that the investment the organisation makes in it is rational and justified. Without an HR strategy and appropriate measures, HR will fail to get the best out of the most important asset in the business – the people. So, this is the starting point for Collinson Grant's outsourcing proposition. What we offer Level 1 A short review with feedback (1-2 days), including work: to review and discuss current strategy to understand business priorities to understand the current role of HR to review the corporate risk register to define goals for HR directors/managers, including bonus targets.
  8. 8. 6 Level 2 A more extensive intervention, involving 10 days' work over 12 months: to assist in creating a comprehensive strategy to develop an appropriate set of measures to create a plan to show executives and stakeholders that the HR function has measures in place to maintain a capable workforce to hold quarterly progress reviews with the HR Director and/or the executive team. Payroll Administering payroll is a back-office function and an overhead. It does not contribute directly to achieving the aims of the business but it must be managed effectively for the enterprise to operate. Even in the largest organisations it is a relatively small department, in which it is difficult to achieve any economies of scale. There are often opportunities to improve quality of service but, because failure has such serious consequences, the overriding consideration is to keep the systems running well. Payroll is a discrete process which can be precisely defined and its inputs and outputs carefully managed. It is therefore attractive for outsourcing and many companies have had such arrangements for a long time. Successfully outsourcing payroll can lead managers to consider delegating other HR tasks to an external partner. Outsourcing offers different options, depending on the size of the payroll and the degree of control that the company wishes to retain. Modern systems offer efficiency and cost-effectiveness. Outsourcing payroll converts a fixed cost to a variable one that fluctuates according to the size of the workforce. We should work with you to define and refine your processes while understanding the responsibilities and accountabilities. Having understood the requirements, we would agree payment arrangements, timings, and documentation requirements. The final stage of the set-up is a trial run alongside your current system. What we offer An initial consultation and review of processes to minimise risks and allocate appropriate accountability. A dedicated outsourcing contract defining the service accurately and setting targets for performance and costs. Unlimited helpline support. Fully reliable, accurate, regular payments to employees. The flexibility to adapt to rapid change.
  9. 9. 7 A reduction in the number of staff involved in routine administrative processing of data. BACS payments if required. Despatch of payslips. Production of P14s, P60s and P35s. The facility to make special and one-off payments. Efficient maintenance of records. Accurate and timely management reporting. Payments to third parties for income tax, National Insurance Contributions and other deductions such as childcare vouchers. Highly secure systems and full accountability. End-of-year reconciliation with accounts, and reporting. Executive recruitment and selection (Recruitment process outsourcing or RPO) Many businesses have successfully delegated some aspect of this HR function to external providers. It is rare today to find an organisation that manages the whole process for all members of staff: creating job descriptions and person specifications, placing advertisements, shortlisting and interviewing applicants, and then managing references and pre-employment checks. Most businesses use recruitment consultants or employment agencies to provide one or more of these services. However, their use is often poorly co- ordinated and badly managed. Different suppliers and terms are typically used, often on an ad hoc basis. There is no central control of costs or measurement of quality. If properly managed, outsourcing can offer considerable advantages. There should be opportunities for considerable savings from simple economies of scale and a closer relationship with one supplier. Collinson Grant has an excellent track record of sourcing staff and, where a vacancy needs to be filled immediately or on a short term basis, we can place an interim manager who meets your business's needs. What we offer Enhancement of your profile as an employer using all social media. Consistent promotion of a positive image to encourage good people to apply. A review of content and processes, based on the strategies for the business and HR.
  10. 10. 8 A review of documentation, terms and conditions. Training on recruitment, interviewing, and best practice. The production of job descriptions, person specifications, and advertisements. Executive search and recruitment, for specialists and managers on salaries above £35,000. Assessment centres and other psychological appraisals as required. Sifting of applications and managing first interviews. Managing references and pre-employment checks. Selection techniques that ensure a good fit between candidates and jobs. Clear and effective management reporting. Employment law support We have been advising companies, including many multi-site businesses, on employment law and employee relations since the 1970s. Our approach is to ensure that managers' decisions both meet business needs and comply with the law. We understand the need to manage people effectively and take difficult decisions. Our experience is that accurate, timely advice will avert problems or minimise any damage they might cause. Collinson Grant offers a tried and tested service to employers. It provides direct access to advice from specialists who get to know your business, your employment policies, and your managerial style. The service is particularly useful for businesses seeking more cost-effective ways of providing support to busy line managers. We also give clients direct practical support in managing employment tribunal claims. What we offer An initial 'health-check' on a business's employee handbook, policies and procedures, employment terms and conditions, and managerial guidelines. Advice and guidance to managers on all HR matters from recruitment through to dismissal. A revision of employee documentation, covering the employee handbook, policies and procedures, and terms and conditions. Drafting and revising letters, contracts of employment, and compromise agreements. Advising managers on handling employee relations.
  11. 11. 9 Briefing managers on changes to employment legislation and on practical approaches to managing within the law. Assisting with the legal aspects, communication and consultation arising from acquisitions and restructuring, large scale closures, redundancy exercises or other programmes of change. Defending employment tribunal claims. Outsourcing provides a cost-effective, flexible solution. Wherever they are located, your managers can get advice by telephone, e-mail or from our website. Administration Relationships with employees are becoming more complex and legislative requirements more onerous. Therefore the efficient maintenance and transfer of information between employer and employee is becoming ever more challenging, and can be a drain on an organisation's resources. When services are centralised and workers based in many remote locations, it becomes more difficult to maintain accurate records and to respond effectively to enquiries from managers and employees. If minor questions about pay, holidays or training are not resolved promptly, they disrupt employees’ attention and undermine confidence. Outsourcing should lead to big savings in organisations with large numbers of employees. Speed, accuracy and reliability can be maintained at lower cost. What we offer A contract that properly defines the service and describes fully the employees’ and employer’s requirements. A bespoke IT system for managing time, expenses, absence, and people. A self-service, web-based system, for easy maintenance. Maintenance of accurate records for all employees on key dates, pay, benefits, performance, sickness, absence, and holidays. On-site training for team leaders and managers. Maintenance of accurate files for all employees containing CVs, offer letters, signed starter forms, job contracts, references, pre- employment checks, probationary administration, training records, and personal development reviews. Compliance with relevant requirements of the Data Protection Act and other legislation. Prompt and efficient responses to all legitimate requests for information.
  12. 12. 10 Supply of data to other systems in order to fulfil HR functions such as payroll, health and safety, training, et cetera. Increased consistency and reliability through systems and automation. The maintenance of up-to-date organisational charts. Management information reporting. The ability to create dashboards to monitor key measures and performance indicators. Benefits and reward Benefits increase commitment, demonstrate care, meet personal needs and form part of a tax-efficient and attractive remuneration package. Their value can be between 25% and 50% of salary. A balanced approach is required to ensure that they promote organisational objectives, are what employees actually want, are offered at an acceptable cost, and do not undermine the strategy for reward. Many larger organisations have introduced systems of flexible benefits in order to take advantage of concessions by HMRC, remain competitive in the labour market, and meet employees’ perceived and varying needs. It can be hard to control the full costs of such arrangements and harder still to measure their benefits to the enterprise. Many organisations persevere with benefit arrangements that have remained untouched for many years. We believe that regular reviews are necessary to understand the contribution that benefits are making to the overall remuneration package, to measure the full costs, to assess trends over time, and to assess the effect of changes in the labour market and in taxation policies. This service helps you to meet employees' needs better, to enhance commitment, and to improve recruitment and retention. It can also find ways to reduce the cost of providing benefits. This offering may be considered as a stand-alone service or as a component of our work on your employee value proposition. What we offer Level 1 An annual systematic audit of all cash and non-cash benefits with an evaluation of their expected contribution to the business. Assistance to understand how labour markets are changing and the relative attractiveness of different approaches. Support in creating structures for pay, progression and motivation. Evaluation of how strategies for pay support organisational objectives.
  13. 13. 11 Level 2 Level 1 plus additional work to: assist with the creation of schemes to encourage employees to meet the organisation's needs develop methods to measure the success of these reward schemes implement new systems for pay (including, if required, negotiations with trades unions) develop performance-related pay or team-based pay initiatives define the full costs of each benefit and set targets for reducing expenditure save money through greater buying power streamline administrative processes, using appropriate technology to reduce time and costs completing surveys of salary markets and analysing market data. Talent management There is a need for companies to be strategic and deliberate in how they source, attract, select, train, develop, retain, promote and move employees through the organisation. Getting it right will improve revenues, customers' satisfaction, quality, productivity, cost, and cycle time. Evaluation of employees should distinguish between 'performance' and 'potential'. Talent management is often associated with a set of organisational core competencies as well as person-specific competencies. Current performance within a particular job has always been a standard tool to measure the profitability of an employee. Talent management seeks to focus on an employee's potential to improve performance by developing skills and taking on more responsibility. A talent management strategy needs to be linked to the business strategy. Organisations need to ensure that there will be a ready supply of new talent for senior positions, even if they also recruit externally. Succession should be considered so that managers attain their full potential and are properly prepared for more challenging tasks. Adopting a formal approach to career management will require additional resources. Organisations have different priorities and they can ‘pick and mix’ from our range of services to suit specific circumstances. Ideally, talent management should be supported by interactive and accessible HR management information systems – see our Administration offering.
  14. 14. 12 What we offer Level 1 Assistance to plan and develop a framework and tools to promote skills and qualities needed for the organisation to succeed, such as leadership, entrepreneurialism, et cetera. Level 2 Development of an action plan to assess the current position. Assistance to manage talent and succession and create a talent strategy. Assistance to develop a competency framework. Analysis of training needs and/or skills audits, mapped against business strategies, which will find gaps in competencies and skills. Creation of a workforce planning strategy that covers: recruitment and retention policies and practices, including remuneration training and development skills mix staff deployment performance management outsourcing decisions (make/buy). Performance management Organisations need a strategic, integrated process which incorporates goal- setting, performance appraisal and development in a unified and coherent framework. This should align individuals' performance goals with the organisation's wider objectives and long-term direction. Performance management is therefore concerned with: how people work how they are managed and developed to improve their performance and utilisation how to maximise their contribution to the organisation, including setting clear targets and objectives that link corporate and individual objectives. Performance management connects the individual's objectives with those of the organisation. The aim is to form a coherent approach to managing and developing people. Performance enhancement should be goal-directed, based
  15. 15. 13 on a shared understanding. Performance improvement must be supported by the development of employees’ capability. Many organisations effectively link performance to organisational values and/or competencies based on a competency framework – see our talent management offering – but many fail to do so. Sometimes there is insufficient clarity in the organisation's expectations; sometimes the performance management mechanisms and regime are unsuitable or too complicated. Most often, they fail because managers have insufficient competence to manage people effectively. Often shared values and/or expected behaviours or competencies are needed to provide the bedrock for effective management of performance. We believe that effective performance management is ultimately the prime responsibility of line management. HR carries the responsibility to ensure that systems and processes are in place and that managers are fully competent to undertake the critical task of managing and nurturing talent and dealing with unacceptable or unsatisfactory performance. What we offer Level 1 A review of the organisation's performance management cycle, including analysis of methods to undertake assessment (appraisals), set targets and review and measure performance. Level 2 Review of the current situation and the establishment of a robust performance management regime with appropriate tools. Review of role profiles/job descriptions against core processes and the re-establishment of RACI for managers. Creation of a competency framework. Provision of training for those who manage performance. Holding of records. Provision of a helpline for appraisers. Employee relations It makes sense to communicate effectively with employees. Their motivation and commitment will increase and change will be easier to introduce. Without effective communication, resolution of conflict becomes the norm. We have more than 40 years' experience of supporting employers in all aspects of managing employee relations.
  16. 16. 14 Our approach focuses on making certain that strategies for managing relationships with employees, as individuals and in groups, formally and informally, are directed at adding value and are focused on the bottom line. We implement measures and practices that help clients to achieve better returns from their investment in people. What we offer Level 1 An annual review of the organisation's strategy for employee relations and associated plans and mechanisms for communication generally. Level 2 Assistance to develop the strategy for employee relations, including communication. Resource management Resource management is about having the right people with appropriate skills doing meaningful jobs . It is essential: to meet the demands of work to plan for and maintain the right skills to have the right make/buy strategy to improve performance by better management and use of resources. We believe resource management should be considered as an end-to-end process with three distinct components: workforce planning – the number of people required and their competence managing talent and capability optimum allocation of resources. What we offer Level 1 Assistance to organisations to consider their end-to-end process and the development and deployment of options for workforce planning tools, together with an operational framework to ensure resources are effectively deployed. Assessment of available data including job titles, job descriptions, employees' personal details and figures on vacancies, turnover and wastage, reasons for leaving and destination, qualifications and skills.
  17. 17. 15 Consideration of available metrics and measures. Gap finding. Level 2 Talent management. (See Page 11 for our offering on this subject). Strategic planning, which promotes linkages between business, finance, and people strategies for performance improvement. (Workforce planning, talent management and resource allocation). Assessment of where people spend their time and what work they do. (Process activity analysis). Review of, and work on, the Enterprise Model and processes. Analyse current position and consider future needs. (Scenario planning). Employee value proposition (engagement) is a constant reminder to organisations of the importance of their brand as an employer and their reputation as a place to work. Hiring and retaining the best talent is becoming harder for many employers. Enlightened organisations invest in their employee value proposition (EVP). There is a lot of evidence that better employee engagement is beneficial: the UK is ranked ninth for engagement among the world's 12th largest economies (Kenexa 2009) productivity in the UK is 16 percentage points below the G7 average (ONS 2013) 94% of the world's most admired companies believe efforts to engage with employees have created competitive advantage (Hay 2012). There is nothing new in the concept of treating employees equitably, while extracting commitment and enhanced performance by offering a reason for people to join, stay, and achieve. The EVP should outline policies, programmes, rewards and benefits programmes that prove an organisation's commitment to people and their development. In a nutshell, it should answer the question: ‘why should I join this organisation?’ The EVP needs to be aligned with the corporate strategy and objectives, and extensively communicated internally and externally. The benefits of the EVP should be seen in: the commitment shown by new starters rates of retention and attrition
  18. 18. 16 recruitment costs. The EVP suffers when leaders are invisible, managers fail to engage, employees have no voice, or the organisation lacks integrity. The HR function should make the EVP and employee engagement a priority. We can help with this. What we offer Level 1 A complete diagnostic review. Regular reviews which could include: temperature checks surveys opinion gathering focus groups. Independent testing of the EVP against strategic objectives. Testing HR's plans against strategic objectives. Level 2 Support the organisation to promote its EVP. Support in creating the strategy. Support in implementing the strategy. Enhancement of the organisation's profile on social media, including assistance with content. Organisational design The HR function must ensure that the design of the organisation is optimal. Many organisations pay this requirement insufficient attention, thereby losing the opportunity to ensure effectiveness and efficiency. Inadequate organisational design wastes resource and adds cost. Review of organisational structure and form is best conducted by those who do not have an emotional or political stake in the status quo. It requires a methodology and it should be the process for integrating the people, information and technology of an organisation. It should ensure that the form of the organisation is matched as closely as possible to what it is seeking to achieve. Good design should optimise collective effort. Organisational design must consider the following:
  19. 19. 17 context culture regulations division of tasks appropriate ratios purpose structure technology reporting and control skills/experience/competence environment size (including affordability) formalisation of processes authority to make decisions. Organisational design is often inextricably linked to the design of jobs and their evaluation. Collinson Grant has developed its own proven methodology for job evaluation. We have a track record of successfully assisting organisations to understand their structural strengths and weaknesses; the appropriateness of structural layers and spans; and the shape and the effect of the diversity of jobs. We assist organisations in considering options such as delayering, adapting levels of work and functional relationships. What we offer Level 1 Periodic, independent testing and review of structure, and basic analysis and reporting on people costs. Level 2 Designing methods for the evaluation of jobs/roles. Introduction of a regime. Custodianship of evaluation system (for complete independence). Drafting role descriptions for use in evaluation and performance management. Design of governance and management regime and routines.
  20. 20. 18 Job evaluation. Use of Mona Lisa (Collinson Grant's proprietary software) to display and interrogate organisational structure charts and report on layers/spans, costs, et cetera. 170214
  21. 21. Costs People Organisation Productivity Performance Restructuring United Kingdom Mainland Europe United States of America Complexity, Direct costs, Employee relations, Employment law, Implementing change, Integrating organisations, Lean, Managerial controls, Organisational design, Overheads, Performance management, Pricing, Process improvement, Procurement, Reward, Supply chain, Transitional management, Value chain analysis, Workforce planning
  22. 22. 33 St James’s Square London SW1Y 4JS United Kingdom Telephone +44 20 7661 9382 Facsimile +44 20 7661 9400 Ryecroft Aviary Road Worsley Manchester M28 2WF United Kingdom Telephone +44 161 703 5600 Facsimile +44 161 790 9177 Web