It is often believed that companies seek HR advisory services as a cost-avoidance strategy. But, as companies have evolved, so have the reasons why business owners prefer external help to manage HR functions. So, cost management being a starting point, avoiding the risk of a bad hire, compliance, and cultural alignment of new employees are some other strong reasons why companies look for HR consultants. An external partner provides services such as talent management and leadership development, thus helping companies to focus on the core aspects and let it become more efficient and effective.
Further, when you do not have to worry about every regulatory change that affects payroll and employee management, you can devote your time, energy, and resources to executing strategic initiatives.
So you are thinking of working with an HR advisor company? Then, it is important to carefully vet the human resource advisors you are considering. It is important for two reasons. First, HR is one of the key strategic areas, and how you manage it may have a far-reaching impact on your organization. From the quality of employees and workforce management to payroll, training, and compliance to labor laws, everything depends upon the HR management. Second, you share confidential and strategic company information with your HR outsourcing partners, which makes choosing HR service providers sensibly even more important. Here are six tips to help you make an informed decision.
1. Check the firm’s reputation
Connect with a few industry counterparts and seek their opinion on the long-term performance of the firm you are considering. Or else, you may also check the company’s reviews on Google, Glassdoor, Linkedin, etc. Check if the HR advisor company is a government registered too. If you are looking for a company that recruits Indians for jobs overseas, then check for its registration under Section 10 of the Emigration Act, 1983.
2. Use of technology
From putting recruitment ads out to sharing talent analytics with you, an HR firm should have the latest tech tools to be quick, efficient, and accurate. Ensure that the HR partner also has updated documents on policies and processes that provide solutions in an integrated way—that means you shouldn’t be required to go through multiple folders, files, or sites to review different tasks. Such best practices also help streamline processes and mitigate risks better.
3. Check expertise and experience
Find out the type of verticals that the HR advisory service providers you have shortlisted have experience in, especially when you are looking for candidates with specialized knowledge. Ask them about the companies they have worked for earlier, the process/strategy they followed to ensure the best hire for the domain in question, and how did it benefit their clients. If the only value an HR advisor mentions are cost-cutting, then you may want to look for better options. Besides, check the range of HR advisory services a firm offers. If another HR-related requirement comes up in the future, you will not need to hunt for the best HR advisory services again if, at the beginning itself, you choose a firm that provides 360 degree HR services.