The key to successful and sustainable HR operations improvements in today’s economy is acting on opportunities that offer immediate cost savings and operational efficiencies. Today's new Top 5 outlines ways to achieve “quick wins” through HR sourcing:
- Recruitment Process Outsourcing (RPO). Establishing a scalable recruiting and staffing delivery model now will ensure your organization is ready to react quickly as hiring volumes increase. Companies have realized up to 40 percent reduction in cost per hire and 40 to 50 percent reduction in time to fill by implementing a strategically designed RPO solution.
- Managed Service Provider Programs (MSP) for Contingent Labor. In addition to providing a single point of accountability, MSPs can help your company consolidate and focus the sourcing and rate negotiation for your labor pool, including taking advantage of companywide discounts. On average, MSP programs have resulted in 17 percent savings on contingent labor spend.
- Total Absence Management. With the cost of direct and indirect absence estimated at up to 14 percent of payroll, assessing how your organization reports, tracks and manages time off (FMLA leaves, disability, worker’s compensation and incidental time off) can substantially mitigate compliance risk, improve reporting for productivity planning and tangibly reduce absence-related costs.
- U.S. Benefits Administration Renewal Strategies and Renegotiations. The maturation of the U.S. benefits administration market has driven costs down significantly during the past five years; between 25 and 30 percent lower across all plans. If your company is paying for services under an older, multi-year contract, it’s time to consider renegotiating to take advantage of today’s more competitive rate structures.
- Multi-Process HRO (MPHRO) Mid-Contract Reviews. In the less mature multi-process HRO market, the lessons learned in recent years have both providers and buyers re-evaluating their current contracts to ”right-size” services and realign costs. Now is the time to conduct a structured review and evaluation of your MPHRO deal.
As companies look to lower costs, reduce compliance risk and increase the operational efficiencies of HR, these Top 5 opportunities provide significant potential for success and should be prominent in the discussion across the enterprise. ISG’s HR outsourcing experts can elaborate on real-world case studies for each of these critical areas and help you discover which may present the best opportunities for your company.
Contact us today to start reaping greater cost savings and efficiencies.