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Human resources outsourcing

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What is Human resources outsourcing - HRO?

Technological advances have undeniably changed the world of work. From the types of employment on offer and the way that people carry out that work, to how HR admin functions are delivered – there are many ways that tech can support you to fulfil your responsibilities. HRO, or Human Resources Outsourcing, can take away complications and be transformative in helping you and your company to get great work done.

So, what exactly is Human Resources outsourcing? It describes the situation in business when a third-party specialist company is contracted to undertake HR on behalf of another company. When an organisation chooses HRO the benefits can often include financial savings, a reduced administrative load and connections to specialist skills and know-how that might not be available internally.

The company that provides the HRO is most often a separate entity, albeit one that works closely alongside the commissioning organisation to ensure that HR activities meet their strategic needs and aims.

What services does HRO typically offer?

You can expect some or all the following services from HRO companies:

  • Payroll and tax processing: From working out employee wages to organising taxes, this function can support companies to make sure your workforce receives accurate, timely pay while supporting you to fulfil legal requirements.
  • Benefits management: Helping companies to effectively run your benefits offer for employees; this could include support with enrolment, eligibility, and claims.
  • Time and attendance software: This might comprise of supervising their hours worked, processing time off, reducing errors linked to inputting manual hours and producing data reports.
  • Policy making and workplace health & safety: Putting the right HR policies and practices in place takes both expertise and time. Services on offer could include compliance evaluations, strategy design, and programmes to help retain employees.
  • Recruiting and onboarding: Supporting you to recruit the best talent - from the very beginning when you want to make a positive first impression with a well written job description, through to interviewing, processing references, and creating a constructive onboarding process.
  • Compliance and risk: Keeping up with developments in the world of employment law and regulations can be complex – but HRO companies with this specialism can help you to navigate it all, also delivering support and learning in topical areas.
  • Learning and development: Supporting you to go beyond simply managing your employees, this HRO solution can help elevate everyone and accelerate skills, including providing you with insights into performance and strengths.
Case study

Case Study: When CaloAesthetics chose ADP for their HRO

CaloAesthetics Plastic Surgery Center, a business with multiple specialities and locations, requested ADP’s help at a time when they had numerous separate payroll and HR providers. It wasn’t an ideal situation to say the least, and these disconnected services alongside restricted HR support meant they were losing time and money on inefficient processes while not having the guidance they wanted.
At the time of partnering with ADP, the company had been operating for 24 years from three sites in Kentucky, North America. The strands of their business include CaloAesthetics Plastic Surgery Center, which provides plastic surgery services; and CaloSpa Rejuvenation Center, which offers aesthetic treatments, day spa services and wellness therapies.

Nickoli Neville, Chief Operating Officer, opted to join ADP in 2020 just as COVID-19 was escalating, and a few days after closure by the state as part of pandemic precautions.

Impressed by the quality of employee benefits

One of the main appeals for Nickoli when choosing ADP as their HRO provider, was due to the employee benefits on offer. Today, they can utilise a great deal of Fortune-500 benefits which their employees can elect to customise according to their circumstances. In addition, there are experts designated to every service on offer in the company’s package, so they’re able to get friendly, professional support when they need it.

Making savings, gaining efficiencies

When they contacted us, CaloAesthetics had payroll and HR providers that didn’t mesh, while their HR contract delivered only a set number of hours per quarter. It was a challenging situation when it came to planning in particular; due to the impossible nature of predicting exactly what HR issues might arise each month and therefore what the requirements might be. If they were under their allocated hours, they received no fee return, yet going over hours came with an extra cost.
Their ADP package now provides them with unlimited hours and they’re often in touch with their HR business partner, making working life easier for the senior management and employees. They’re getting the help they need; they don’t have the concern of going beyond their hours, and they’re saving on costs – so it’s positives all round.

Here’s a quote from Nickoli that summarises his experiences:

“Not having an internal HR person is a difficult thing, but with ADP it’s not so difficult. Given the relationship and the support they provide, I would absolutely recommend ADP TotalSource… With ADP, not only do they have the name and the size of the company behind them, but they also understand the 'people factor.' That’s what we enjoy the most and that’s the thing that makes us feel most confident when recommending ADP.”

choose ADP for HRO services

Why choose ADP for HRO services?

It’s important to choose a company with HRO expertise and experience, so that you get the results you need. In the world of human capital management, we at ADP were among the very first companies delivering automation, in addition to providing an app and marketplace online. We’ve been at the frontier of Human Resources Outsourcing for 70+ years, so by outsourcing to ADP you’d be choosing an industry leader with decades of wisdom.

Size is another factor to consider when selecting your HRO Provider. You want a company with enough capacity to fulfil your requirements, as well as a quality customer service offering to ensure you don’t get lost in the crowd.

ADP is a top provider of HR services in the UK and one of the largest providers throughout Europe, Latin America, North America, and the Pacific Rim.

Highlighting both our expertise and our capacity – ADP delivers HRO software to 75% of the Fortune 500, in 140 countries.

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