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OUTSOURCING HUMAN 
RESOURCES 
“The Last Craft”
Why this new phenomenon? 
Why is HR the “last craft” 
Outsourcing HR since the 70’s 
Revisited with organisational restructures 
“Core business” arguments
Common inclusions 
Payroll, recruitment, legal representation, 
occupational health services, HRIS, 
psychometric testing, learning & 
development activities, employee 
assistance programs, superannuation etc…
Not-So-Common inclusions 
HR Strategy & design work 
HR Audits and due diligence 
Complete HR infrastructure
Why bother? 
Access to better practices 
Access to better research 
Access to better resources 
Price, profit and expenses 
Culture
How do you outsource HR? 
Determine what is and isn’t acceptable 
(both current and future) 
Set goals and benchmarks 
Evaluate providers
Determine what is and isn’t 
acceptable? 
Current state of HR in the business 
Desired services 
Determining what is in scope 
Metrics 
Outcomes (financial and other)
Outsource Company 
credentials 
Track record 
Referees 
Research 
Infrastructure 
Licences and insurance
Tenders 
Simplicity 
Identical information 
Service level agreements
Communications Strategy 
Variable audiences 
Reasoning 
Timing 
Transition 
Expectations of everyone affected
Building the “new” HR 
relationship 
Personable 
Reliable 
Expert 
Advanced
Building the “new” HR 
relationship 
The responsibility of the provider 
The responsibility of the company 
The responsibility of the line manager
What does success look like? 
To the provider 
To the company 
To line manager
What if it goes wrong? 
Service level agreements 
Insourcing 
Changing providers
The future of HR Outsourcing 
Gradual acceptance 
Increased elements in scope 
Globalisation spread of concept
Thank you

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Outsourcing human resources

  • 1. OUTSOURCING HUMAN RESOURCES “The Last Craft”
  • 2. Why this new phenomenon? Why is HR the “last craft” Outsourcing HR since the 70’s Revisited with organisational restructures “Core business” arguments
  • 3. Common inclusions Payroll, recruitment, legal representation, occupational health services, HRIS, psychometric testing, learning & development activities, employee assistance programs, superannuation etc…
  • 4. Not-So-Common inclusions HR Strategy & design work HR Audits and due diligence Complete HR infrastructure
  • 5. Why bother? Access to better practices Access to better research Access to better resources Price, profit and expenses Culture
  • 6. How do you outsource HR? Determine what is and isn’t acceptable (both current and future) Set goals and benchmarks Evaluate providers
  • 7. Determine what is and isn’t acceptable? Current state of HR in the business Desired services Determining what is in scope Metrics Outcomes (financial and other)
  • 8. Outsource Company credentials Track record Referees Research Infrastructure Licences and insurance
  • 9. Tenders Simplicity Identical information Service level agreements
  • 10. Communications Strategy Variable audiences Reasoning Timing Transition Expectations of everyone affected
  • 11. Building the “new” HR relationship Personable Reliable Expert Advanced
  • 12. Building the “new” HR relationship The responsibility of the provider The responsibility of the company The responsibility of the line manager
  • 13. What does success look like? To the provider To the company To line manager
  • 14. What if it goes wrong? Service level agreements Insourcing Changing providers
  • 15. The future of HR Outsourcing Gradual acceptance Increased elements in scope Globalisation spread of concept