Sourcing Tip #6: Look for “quick wins” in HR

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Acting on opportunities that offer immediate cost savings and operational efficiencies is key to successful and sustainable HR operations in today’s economy. Here are five ways companies can achieve “quick wins” through HR sourcing:

1. 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. By implementing a strategically designed RPO solution, companies have realized up to 40 percent reduction in cost per hire and 40 to 50 percent reduction in time to fill.
   
   
2. 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.
   
   
3. Total Absence Management. The cost of direct and indirect absence can be as much as 14 percent of your payroll. By assessing how your organization reports, tracks and manages time-off, you can substantially mitigate compliance risk, improve reporting for productivity planning and tangibly reduce absence-related costs.
   
   
4. U.S. Benefits Administration Renewal Strategies and Renegotiations. 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. The maturation of the U.S. benefits administration market has driven costs down significantly (20-30% on average) during the past five years.
   
   
5. Multi-Process HRO (MPHRO) Mid-Contract Reviews. Now is the time to conduct a structured review and evaluation of your MPHRO deal. In the still evolving 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.

These strategies can help those companies looking to lower costs, reduce compliance risk and increase the operational efficiencies of HR in today’s turbulent economy. To access other TPI Top 5 Ideas go to http://www.tpi.net/TPITop5/archive/090501.html