Consider staff qualification and experience when weighing effectiveness and capabilities of HRM BPO providers. Part 2 of 5.
Last month, we began a new series examining the non-technology aspects of an HRM BPO provider that, if handled well, would bring that provider success and, by extension, would allow for its clients to be well served. If you haven’t had time to read last month’s column, you may want to do that before continuing with more of my provider competitiveness questions. For those already caught up, here are some more questions to consider:
HRO World’s chairman looks back at HRO World 2003-2005 and helps us look forward to 2006.
April 26 and 27 will represent either the last HRO World Conference in New York City of which I will be chairman, or not.
Raleigh, NC-based Oryel, Inc, a human capital management company, and Humanic Design Inc. of Mahwah, NJ, a payroll and HR solutions provider, have partnered to target small and mid-sized businesses with their offering of smart, customizable, and integrated web-based software tools that allow employers to quickly see, analyze, and manage their employee data.
“We were looking for just the right partner to introduce Humanic to small and mid-market businesses,” said Steve Brander, Humanic’s director of sales and marketing. “We wanted a company with proven experience in the HR and payroll space as well as a no-nonsense approach to delivering solutions. And of course, we also wanted a partner that really liked our software. Oryel fits the bill on every count.”
Oryel HRMS makes it possible for businesses to access and manage hire to retire personnel data, including payroll, HR, and benefits, with the click of a mouse while providing their employees and managers with self-service options.
Fast growth characterized the experience of Kara Homes in recent years, but HR struggled to keep up with its rapidly expanding workforce. That is until the company began outsourcing payroll, which opened the doors to so much more than paychecks.
As one of the fastest-growing builders in the U.S., East Brunswick, NJ-based Kara Homes faces the usual growing pains any similar company experiences: keeping up with employee services as the number of workers swell. Founded in 1999, the home builder in the past seven years has rapidly grown headcount during one of the most explosive real estate growth periods in the state’s history.
Ultimate Software, a provider of web-based payroll and workforce management solutions, said United Dominion Realty Trust has selected its Intersourcing on-demand delivery model. With more than 2,100 employees, United Dominion is the fourth-largest apartment real estate investment trust (REIT) in the U.S., owning and operating apartment communities nationwide. To manage its HR/payroll processes, the firm has been using a service bureau, but found that it needed more robust HR functionality and workforce reporting tools to streamline processes and manage its labor force as efficiently as possible. United Dominion selected Intersourcing last September.
How critical a provider’s HRM BPO business is to its core determines the quality and longevity of your partnership. Part 1 of 5.
Since the inception of this column at the beginning of 2003, I’ve been writing about the importance of various systems-related topics to the success of HRM BPO providers, the successful delivery of HRM BPO services, and the successful execution of HRM BPO deals—topics of increasing interest to both the providers and their prospects/customers. There’s much more to say about these system-related topics and about their importance to the success goals of the delivery system choices being made by buyers and sellers of HRM BPO, and I will return to these topics in a few months. However, I wanted to take the next few columns to make sure we don’t lose sight of the many other factors that must be handled well if an HRM BPO provider is going to be around long enough for its service delivery to matter. If you thought you saw consolidation and just plain provider failures in 2005, prepare for whiplash in 2006. And those left standing will need to have more going for them than excellent delivery systems.
A broader adoption of multi-tower deals means payroll is often rolled up in full-service outsourcing agreements.
Outsourcing payroll just isn’t what it used to be. Although industry estimates indicate that fewer than 50 percent of all companies outsource payroll (the universe includes millions of small businesses), the number of standalone payroll deals aren’t growing nearly as quickly as the number of multi-tower outsourcing deals. That’s because while many companies still outsource just the payroll portion of their HR services, record numbers of buyers are outsourcing end-to-end services including payroll.
Small organizations are more likely to outsource payroll, but larger firms are catching on.
Growth in spending for stand-alone payroll outsourcing—although less dramatic than growth in the overall HR BPO space—has remained steady in the 6-to-8 percent range in the U.S. It’s noteworthy, given the size and maturity of the market. IDC regularly surveys organizations that make HR outsourcing decisions, and the results of these studies show that payroll outsourcing inclination is changing. Read on to see how.
Ceridian Signs 100th Payroll International Client
Enterprise HRO provider Ceridian said it has signed its 100th multinational payroll client and now provides multinational payroll outsourcing in 38 countries, across the manufacturing, technology, financial, and other industries. Introduced more than three years ago and expanded in 2005, Ceridian Multinational Payroll Solutions enables global employers to contract with a single provider for all of their payroll needs, reducing the need to keep up-to-date with payroll regulations as well as the cost and responsibility of employing payroll experts in each country.
Sawyer Realty Holdings LLC has purchased Ultimate Software’s UltiPro Workforce Management delivered through its hosted service delivery model, Intersourcing.
Sawyer Realty Holdings is a privately held real estate acquisition and management firm that has been using a service bureau. With a plan to grow its nearly 1,000-person employee base, the holding company needed deeper functionality and richer reporting capabilities than it has available with its payroll outsourcer. The firm selected the on-demand delivery model of UltiPro because Ultimate Software assumes responsibility for all of the IT functions associated with UltiPro, such as purchasing hardware and system software and managing backups, versioning, and upgrades, while providing Sawyer’s users with browser access to features that:
* Facilitate company growth through acquisitions
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