When to Outsource

When Is Outsourcing the Right Decision?

There are between 20-25 distinct HR tasks in most companies. How to best perform these tasks – internally or externally – is a question frequently faced by executives. Arriving at the answer to this deceptively simple question is actually quite complex, however.

As the chart below illustrates, the answer invariably depends on what tasks and capabilities you are outsourcing, your current situation and the size and complexity of your organization.

	Access to Competitive Benefit Programs	Access to Transactional HR Systems and Services	Access to Day In, Day Out Professional HR Support	Access to One-Time High-Quality HR Solutions and Projects from an External Source
YOUR NEEDS
For SMALL Organizations	Our PEO solution will likely work best	Outsourcing costs much less.	Access to high-quality HR professionals costs much less.	Usually not necessary.
For many MEDIUM-SIZED Organizations	Our PEO solution may work well.	Outsourcing costs much less.	Access to high-quality HR professionals costs less.	Access to high-quality solutions and specialized HR expertise costs much less.
For ESTABLISHED Organizations	Our PEO solution may work well.	Outsourcing costs much less.	If requested on a project-specific basis.	Access to high-quality solutions and specialized HR expertise costs much less.

How Will My Needs and Solutions Change As My Business Evolves?

No business is absolutely stagnant; it is constantly changing. And as the company changes, understandably its human resource needs transform as well. But how will these needs change?

As the following chart summarizes, the HR needs of a company are determined based on a number of factors. These factors determine if a company’s needs are primarily transactional, strategic or somewhere in between.

As Your Situation Changes...	For a Small Organization: New or growing Need Fortune 500 level Benefits Need high-quality, but low cost HR expertise Want minimal regulatory risks	For a Medium-Sized Organization: Value of frequent hiring & training expertise increases Morale and motivation are hard to sustain Benefit needs evolve Retaining key employees is crucial	For an Established Organization: With an HR department Need high-quality, tailored compensation & benefit programs Small improvements in performance per person generates big results on the bottom line
...A Fuller Set of Solutions is Required	Transactional HR: Compensation Administration Payroll Benefit Claims Management HRIS / Fully - Integrated Technology	Key HR: Regulatory Compliance Recruiting Develop / Train Direct Motivate Retain	Strategic HR: Policies & Procedures Compensation Plan Design Benefit Plan Design Workforce Optimization
...and Desired Performance Results Accumulate	Time available for mission-critical tasks Talented employees can be hired Costs are minimized	Turnover costs are reduced Performance per person starts to increase More talented employees are hired	Peak Performance per Person Maximum cost efficiencies

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