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8 Advantages an Organization in Transition Can Find in an HR Business Process Outsourcing Solution

By Dave Imbrogno, President of HR, Payroll and Talent Solutions, ADP

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Dave Imbrogno, President of HR, Payroll and Talent Solutions, ADP

In any given year, an organization may double in size, enter into a new market, or even divest large portions of its business. These types of disruptive business changes used to be few and far between; recently, they’ve become the new norm.

For instance, according to KPMG, acquisition momentum is expected to continue in 2016, driven by trends of companies entering new lines of business or expanding customer reach. The firm reports that “U.S. deal makers are being motivated by low interest rates, resilient stock prices, solid employment numbers and an abundance of cash.”

Constellation Research also reports that “the pace of change has increased, competition has intensified, and business models have been disrupted. Digitalization of business is a key factor in this accelerated pace of change.”

This hastened pace of business transformation can be daunting, at best, and potentially crippling at worst to those organizations it impacts.  As companies expand and contract, organizations are realizing that they may be exposed to significant risks during the integration of new company segments.  This awareness is leading to an increased demand for Human Resources Business Process Outsourcing (HR BPO) services. Companies in transition are finding that an integrated HR BPO solution is pivotal to building and managing the challenges of a transforming workforce.

Unlike earlier waves of HR BPO, which were mainly focused on driving standardization and cost efficiency, today’s engagements focus on how HR BPO providers can help organizations manage constant, rapid change.  Organizations in flux are being driven to ask questions like these: 

  • Can an HR BPO service provider scale with the organization as it organically or inorganically grows?
  • How will the service provider assist the organization during disruptive events like acquisitions and divestitures?
  • How well is the service provider equipped to manage the life cycle of technology changes throughout the engagement?

Today’s enterprises need an HR BPO solution that’s flexible enough to support them as their business grows – organically or inorganically.  They are seeking one partner who can collaborate with them as they experience disruptive events, as well as continue to deliver a robust solution as their technology needs evolve.

An HR BPO solution provides unified administration, recordkeeping and reporting across the spectrum of human capital management functions, such as payroll, talent management, human resources management, benefits administration, time and attendance, and retirement services.

A fully integrated HR BPO solution can provide organizations with a level of agility and transparency that’s hard to find.  On the cost side, an integrated solution provides a “pay-by-the-drink” approach that both increases insights on an ongoing cost structure and helps organizations quantify costs for scaling or exiting businesses, as necessary.  On the service-delivery side, an HR BPO solution enables scaling to accommodate size and geography, and addresses technology implications that may be an outgrowth of that activity.

Here are eight advantages a fully integrated HR BPO solution can deliver to an organization in transition.  It can:

  1. Facilitate better process improvements, change management and use of best practices.
  2. Help reduce HR management costs by lowering HR capital expenses for staff, infrastructure and technology.
  3. Help free in-house HR resources to focus less on day-to-day transactions and more on strategic tasks.
  4. Deliver consumer-grade user experiences to an organization’s employees.
  5. Optimize technology evolution by adopting emerging solutions, such as mobile apps and wearable devices.
  6. Provide workforce analytics and reporting data crucial to contributing to strategic business decisions.
  7. Manage compliance requirements more efficiently and accurately.
  8. Deliver a transparent and predictable cost model.

With business changes occurring at a sometimes lightning-fast pace, having an integrated, flexible HR BPO solution can add a strategic layer to a transforming organization that enables it to better predict, measure and accelerate its investments and results.

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