How to successfully transition to HR BPO

Quantifying the retained organization

Article

In this article, ADP’s Senior Director of Global Consulting, discusses the model the company has developed in quantifying the retained organization.

Stepping up in the Human Resources Transformation, and more specifically Human Resources Outsourcing (HRO), raises fundamental questions and implies to agree on the processes and activities to keep in-house and the ones to reengineer and outsource.

Quantifying and designing the retained organization go hand-in-hand with the project’s business case and require adopting a structured approach.

The roadmap to design the retained organization begins with the definition of the project’s scope (service model, tasks to outsource, and project’s footprint).

Understanding and defining your project’s scope is the fundamental phase in the design of your future organization.

In order to get a clear picture of the future organization, it is usually good to start by focusing on how the work gets done today.

Outsourcing HR means changing the roles and tasks of your retained Human Resources staff.
An anticipated reduction in headcount is often central to the business case for moving to a Human Resources outsourcing model.

There may be no such thing as a “typical” impact on labor, since the outcome is highly dependent on the organization’s structure, previous degree of centralization, functions being outsourced and the assertiveness in redefining new roles and responsibilities.