Magazine article Workforce Management

Hro Deals Often Demand New Manager Skills

Magazine article Workforce Management

Hro Deals Often Demand New Manager Skills

Article excerpt

OUTSOURCING

Human resources outsourcing providers are constantly touting the ability of an HRO arrangement to allow human resources managers to be more strategic. The thinking goes this way: Since they no longer have to oversee the administrative work, HR managers can spend more time on business strategy.

But as employers gain experience with HRO deals, many are realizing that managing these relationships requires employees who can act as project managers, understanding technological issues as well as compliance procedures and regulations.

"What it means to be strategic might not be what people originally thought it would mean," says Stan Lepeak, managing director of research at EquaTerra, a Houston-based outsourcing advisor. "A good recruiter isn't necessarily going to be good at managing a recruitment process outsourcer."

Employers can get help from HRO providers and outsourcing advisors, but ultimately they need in-house people who can manage these relationships, Lepeak says. And that can mean offering higher salaries than companies have in the past, he says.

Firms are spending 41 percent of their HRO management budgets on employees, according to a recent EquaTerra study.

"It might mean that a company has less people but pays more for those people because those skills are scarcer," he says. "This can be hard for companies just in it for the cost savings."

Employers need to spend time figuring out which of their current employees may fit the roles they need, says Mark Azzarello, director of the HR operations at International Paper in Memphis, Tennessee. …

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