By Matt Lewis
Whether we’re talking to business owners or the HR teams who support them, when it comes to HR technology, there seems to be a recurring theme: providers leave a lot to be desired.
It’s not that the technology itself is bad per se. In fact, today’s HR tech is capable of some pretty impressive tasks. It’s the ongoing service, support, and collaboration that seems to disappear shortly after the ink dries on the contract.
And the evidence that this is an increasingly alarming issue is more than anecdotal.
For the past 25 years (and counting), Sapient Insights Group has been conducting its Annual HR Systems Survey, an exhaustive report aimed at spotting the topics and trends that will shape the HR landscape in the years ahead.
Results from the recent 2022/2023 study revealed:
- 6% decline in overall user experience ratings
- 7% decline in overall vendor satisfaction ratings
- “cost vs. outcomes” and “declining customer service” were the top two factors driving scores lower
Although the overall decline is still within the single-digit range, when combined with the other factors that impact HR professionals today – the ongoing war for talent, extraordinary economic pressures that weigh on the business as a whole, and the increased demands that are placed on already overworked HR teams – there’s a perfect storm in the making.
Just when HR professionals need more support from their vendors, things seem to be heading in the opposite direction.
So how do we reverse direction?
The answer is closer – and more accessible – than you think.
The capabilities and capacity of Human Resource outsourcing (HRO) organizations have grown significantly in recent years, and as employers strive to “do more with less” – particularly in this economy – HROs can play an increasingly important role in the day-to-day operations of the business.
They’re also an in-house HR team’s best friend. Here are three key reasons why.
- HROs offer an antidote to the “big box blues”
If you feel like you’re not getting the level of timeliness, responsiveness, and support you expect from your “big box” HR technology or HCM provider, working with an HRO organization that has a local presence can make the difference between feeling frustrated and feeling fulfilled.
When you’re working with a local HRO, issues get immediate attention and are resolved right away. No impersonal call centers. No endless “press 5 for this, press 2 for that” nonsense. No “we’ll get back to you” promises that never come. Just the opportunity to work with someone who is deeply connected to your business and a part of the community.
This relationship is extremely valuable as your company grows and scales. Local HRO providers can help to map out the personnel side of business growth and keep you appraised of current trends, challenges, and opportunities impacting your labor market. This gives you a strong strategic advantage, but the right provider can also help you with some of the more transactional aspects of HR as well. - HROs empower you to spend less time on administrative tasks, and more time supporting employees.
Recent Gallup reports show that only 32% of US workers are actually engaged. Turning the tide on this disturbing trend will take effort, energy, and focus, but the day-to-day administrative tasks that are non-negotiable parts of the employee experience can be all-consuming.
Payroll, benefits administration, compliance concerns, risk management, onboarding paperwork, employee handbooks… they’re all critical tasks, but they also tend to get a bit tedious. The right HRO provider, however, can assume responsibility for all these tasks (and more) while keeping you in the loop every step of the way.
HRO organizations also deliver access and support to resources that actively enhance the employee experience. Some of the best ways to boost engagement include:
- Providing benefits that address the health, wellness, financial, and retirement needs of your workers and their families. This adds tremendous peace of mind, particularly in today’s economic climate.
- Helping to forge a culture that is mindful of the wants and goals of the workforce. Employee engagement studies, employee satisfaction surveys, and other similar activities will help you keep your finger on the pulse of your workforce and deliver the programs and support services that will keep employees happy, focused, and loyal.
- Delivering opportunities to help employees learn new skills, establish goals, and advance their careers will show employees you’re investing in their future and help you actively close skills gaps as they emerge. It’s an absolute win-win.
- Agility, flexibility, and scale
If the past few years have taught us anything, it’s that the labor market can be a bit on the mercurial side. As the year began, publications breathlessly reported on “The Great Resignation,” a mass exodus of workers who planned on quitting their jobs, making an already runaway recruiting and retention issue even worse. As the economy worsened, we began reading about “The Great Stay,” the dynamic that would see workers hunker down and remain in their current jobs even if they weren’t happy. Only to see “The Great Resignation” crop up again.
If HR teams attempted to scale up or scale back in response to these trends, a tremendous amount of energy and expense would have been consumed just trying to keep pace. By contrast, relying on HRO organizations allows businesses to contend with the ebb-and-flow of such labor markets with ease. Adding or removing services, even helping with “level-setting” episodic tasks such as comp surveys and succession planning, is a much lighter lift than trying to find the time and personnel to get those tasks done internally.
In a world where “killer brand” tech and services often fall a bit short, HROs present a flexible solution, offering personalized attention, and delivering the agility you need to navigate the twists and turns of today’s employment landscape.
Matt Lewis, Co-Founder & President
matt@congruityhr.com
Congruity HR
www.congruityhr.com