Delivering strategic value through outsourcingChoose the right supplier to free you up from administrative HR and payroll tasks, so you can focus on what really matters – your people.

SelectionGuide

Contents4 Introduction

5 The changing nature of outsourcing - the past, present and future...

6 Building your business case

11 Defining the scope of your project

16 Things to consider when shortlisting suppliers

20 The Outsourcing Contract

22 Don’t take your choice of provider lightly

23 What happens next?

24 About MidlandHR

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By asking yourself and your potential supplier a few key questions, you can help def ine your shortlist with conf idence and f ind your perfect match.

What are the real benefits of outsourcing?

How do you know you are ready to outsource?

Do you really understand what outsourcing involves?

Are you clear on what you want to achieve?

How might outsourcing impact your overall business strategy?

What do the buzz words mean?

Where do you start?

How do you manage your supplier partnership?

How do you measure the performance of the arrangement?

With such a broad range of outsourcing suppliers in the market, it’s hard to know where to start. This guide is designed to explain the principles of HR and payroll outsourcing, and offers top tips on what to look out for and consider when choosing an outsourcing partner.

“As businesses drive for increased eff iciency, f lexibility and service quality, outsourcing is considered an effective and essential part of HR strategy

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Believe it or not, outsourcing is “business as usual” for many organisations. It is considered an effective and essential part of HR strategy, by freeing up time to focus on activities which help businesses achieve their goals.

As we come out of diff icult economic times, where focus on cost was such a critical element of all business activity, we need to take time to ask ourselves; • How much has this affected your ability to appreciate service quality

and access to new technologies?

• How has it affected how you interact with staff and business partners as an aid to organisational growth and efficiency?

• Are you getting the most out your current arrangements?

Some businesses are already reaping the rewards from outsourcing some of their HR and payroll processes, driving increased efficiency, flexibility and service quality. Others are put off by false concepts surrounding the perceived cost, effort and risk involved.

This guide will dampen these misconceptions, and highlight what to look for in a supplier, the benefits that can be achieved from outsourcing, building the business case, shortlisting suppliers and important things to consider before signing on the dotted line. We’ve even included a handy checklist for reference.

A CIPD survey reported that the large majority of organisations outsourcing aspects of HR and payroll found it to be a strategic enabler for the internal HR function.

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The changing nature of outsourcing – the past, present and future…

The death of lift and shift outsourcing – Thank Goodness!Better awareness of the services required to deliver on a business’s strategic aims have gone a long way to seeing off “lift and shift” outsourcing, where the main objective was cost savings. ‘Lift and shift’ is an old phrase designed to explain when an existing internal process is lifted out of its current organisation and shifted over to a third party.

It still happens of course, but it’s a race to the bottom where no one wins; margins are squeezed, investment and innovation are stifled and ultimately damaging for your business and your employees. While lift and shift models might have some ROI, they fail to address the critical aspects of long term strategic support, best practice operations, continuous improvement and driving change.

The growth of outsourcing today….Outsourcing has changed the face of HR and payroll, providing a strategic enabler that continues to make up the largest component of the outsourcing market according to leading analysts, with an 18.5 per cent share. The need for in-depth expertise has become a vital prerequisite of the outsourcing provider, and the move from “lift and shift” to unique layered solutions has become the main requirement.

Technology-led outsourcing is a common part of a typical outsourcing partnership, with leading suppliers able to offer access to the latest feature rich software with an emphasis on self-service applications. This is vital in ensuring all people data is maintained on one single platform, whether processes are undertaken through your internal teams or outsourced.

Add to this, innovations in social media, mobile and business analytics and the whole landscape of delivering services has radically altered. The value of HR and payroll outsourcing is realised beyond the realms of cost. As requirements become more sophisticated it is vital that you partner with the right supplier that can offer future proofed services and software to keep up with the modern business environment.

Benef its of HR and payroll outsourcing

Access to in-depth HR and payroll expertise

Ensure risk management and compliance

Reduce operating costs and increase efficiencies

Improve services to employees

Access to new and evolving technology

Relieve pressure upon internal HR resource

Free up time to focus on business priorities and HR strategy

These benefits listed above are key considerations to highlight when building your business case, explained in more details in the next section…

‘Outsourcing HR is like an a la carte menu: businesses can pick

and choose what they implement based on

their needs, situation and projected growth’

(Aberdeen Group 2015)

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Building your business case

Access to in-depth HR and payroll expertise This should be valued more highly than generic outsourcing expertise and should be an essential element of any modern HR or payroll outsourcing arrangement. An emphasis on service and quality delivered by CIPD and CIPP qualified teams is essential in achieving this level of specialist knowledge which will provide a great benefit to your organisation.

Risk management and complianceDedicating sufficient resources to manage compliance and risk in the highly regulated and changeable area of HR and payroll is vital, but is often difficult to achieve internally. With the onset of more legislative changes such as pension’s reform, shared parental leave and holiday pay – on top of existing laws and regulations, pressure is building upon internal teams to ensure on-going compliance. These changes are significantly changing existing HR and payroll processes and are increasing the demand for specialist outsourcing as businesses look to minimise risks.

Expert resource on-hand to guarantee compliance via a specialist HR and payroll supplier is enormous in comparison to what can be achieved through in-house teams. Liability for governance, risk and compliance lies with the outsourcing provider. This responsibility should never be taken lightly; in fact your provider should be at the forefront of change through proactive engagement with regulatory and professional bodies. This is explored further in the section on ‘Finding the right match’.

A strong business case should consider the following factors which will result from a successful, collaborative partnership with a specialist HR and payroll supplier:

‘26% of businesses outsource HR because it cuts costs

Society of Human Resource Management.

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Reduced operating costs are not the only benefit Cost reduction has traditionally been the main reason to outsource, through improved operational efficiencies. However, the move away from the “lift and shift” mentality based solely on return on investment (ROI) has brought a vital transformation, with outsourcing now recognised as more than a fast and simple route to cost saving. It’s about access to an enriched pool of continually developing people, skills and technology that will deliver on-going efficiencies which should increase as the partnership matures.

Whilst cost saving cannot be ignored, it remains a key driver and benefit for over a third of businesses looking to outsource. Alongside the savings made through access to a more efficient solution, savings are also made through the redistribution of internal resource that is often spent on administrative processes and reapplying this resource to focus on business objectives.

Cost savings are particularly apparent and easily achievable in payroll outsourcing, where your outsourcing provider will take complete or part responsibility for your payroll data and processing. Outsourcing providers will already be running services for numerous companies so should easily be able to prove their pedigree through PQP accreditations, CIPP and CIPD qualified teams, industry recognition through service awards, customer references, years of experience and evidence of ROI.

Improve service quality and flexibilityImproving and transforming service and process quality is only possible through in-depth HR expertise and proven best practice processing on the part of the provider. It is vital that new and improved HR processes are suitable and present an appropriate cultural fit. This involves close collaboration throughout the decision making process and beyond, offering choice and flexible but targeted SLAs, based on those things that are important to you.

Close collaboration ensures absolute synergy and understanding. The provider must get under the skin of your organisation in order to streamline operations, with a greater focus on quality, efficiency and unique HR outputs designed to suit the way in which your business operates. Working closely with your supplier should uncover greater efficiencies beyond the realms of HR and payroll, modernising existing internal procedures based on more efficient process chains, workflows and communications. The impact of appropriate best-practice processes can be significant and is a vital consideration when preparing your business case.

The supplier must get

under the skin of the

business in order to

streamline operations.

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Access to new cloud technology With growing recognition of the importance of technology in an outsourcing decision, technology-led outsourcing deals are commonplace. Access to technology allows your workforce to come together on a single platform, and provides a strategic toolset for managing people. Suitable vendor selection is critical to ensure utilisation of the system and alignment with the outsourcing service.

The quality of the technology applied during the outsourcing of HR and payroll has a fundamental, long-term impact on the service levels and quality that can be expected from an outsourced arrangement. Technology can also offer the flexibility to adopt a combined solution, giving you the freedom to pick and mix services by selecting which processes to manage in-house through direct access to manager and employee self-service.

Rapid and continuing changes in delivery capability, cloud technology and access to real time data, can now add to the quality of the business metrics provided by your supplier, adding significantly to the value of the provision. If these are used sensibly they can add a new dimension to the service. A recent report by Aberdeen Group on HR outsourcing stated ‘Businesses that outsource HR are 43% more likely to clearly define HR effectiveness metrics...’

Relieve internal HR resource pressureOutsourcing transactional HR processes, supplemented by access to modern HR technology, enables and supports an internal focus on strategic HR priorities. Administrative HR, defined by the CIPD as ‘high frequency, high labour cost and low strategic impact HR process and administration’, takes up a significant amount of time within HR departments. With flexible outsourcing services, access to manager and employee self-service, and the ability to utilise strategic talent management functionality, internal HR teams are empowered to add strategic value to their organisation, rather than getting bogged down in administration.

Suppliers are also expanding their service portfolios to include a wider range of decision intensive services. Employment law, occupational health, business partnering, strategic advice & guidance, recruitment, screening and a host of other strategic services are being made available as stand-alone or rolled into service offerings in an attempt to increase the value offered to customers.

This is a prime example of how flexible outsourcing services can be beneficial when teamed up with the right supplier - providing the option to build service layers in order to relieve internal pressure, reduce risks, ensure compliance, and gain vital access to in-depth specialist HR knowledge and best-practice processes supported by best of breed technology.

Research shows 90% of HR leaders feel their roles are largely administrative.

By selecting a provider that focuses not just on quality and commitment to best-practice development of technology, but also offers support for the continual improvement of business processes as a whole, the decision to outsource will continue to deliver increased value as the relationship evolves.

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When writing your business case, don’t forget to reinforce the concept of Human Capital Management or talent management.

The HR department can and should be offering strategic value to your business and making a significant impact on the bottom line. Outsourcing should provide the key enabler for this to happen, both through the technology and through reduced administrative pressure.

The HR department should no longer be regarded as a cost to your organisation, but as a value adding entity, enabling your business to focus on achieving optimum competitive advantage.

TOPTIP TOP TIP

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Free up time to focus on business priorities and HR strategy Outsourcing HR and payroll processes provides organisations, small or large, with the ability to make quicker people decisions and act more strategically. According to recent research by Aberdeen Group, 62% of businesses feel that the biggest pressure upon HR is the scarcity of talent available. Those that outsource some of their labour intensive processes have more time to focus on engaging, developing and retaining employees, as well as building their employer brand to attract new talent. Essentially, this helps to align people with corporate objectives and drive business success.

‘62% of businesses feel that the biggest pressure upon HR is the scarcity of talent available.

Major business pressures facing HR

Per

cent

age

of re

spon

dent

s

Source: Aberdeen Group, March 2015

25%

35%

45%

62%

47%

43%

55%

65%

A scarcity of critical talent available in the marketplace due to global competition

Controlling labor costs through better

workforce management

The cost and complexity of delivering effective internal learning and

leadership development

All Respondents

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Defining the scope of your projectAsk yourself...

Do you need to change the way that your HR and payroll function operates?

How can you justify this decision and build a strong business case for change?

Which areas do you feel need the most attention?

How would outsourcing part or all of your process help your business?

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Before embarking on any form of outsourcing project, have you defined the scope of the project?

Are you simply looking for a payroll bureau service?

Are you looking for a partially outsourced HR and payroll service with access to best-practice software?

Are you looking for a comprehensive HR and payroll outsourcing service?

Are you looking to define a combined solution which would include software, outsourcing and consultancy?

Or is it a simple BACS transmission with the provision of e-payslips?

If you work for a larger business, valuable data and metrics may already be available to help identify which processes are running least efficiently and choose which processes to outsource first. Smaller organisations may consider bringing a specialist provider in at an early stage to define these measurements and to make informed judgements on which areas can offer the greatest improvement and ROI through outsourcing.

Outsourcing is a great way to help distribute everyday business woes, without losing sight of what makes an organisation effective in the f irst place.

Aberdeen Group 2015

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Never outsource a problem In assessing your existing processes it is important to remember that you should never ‘outsource a problem’ as it will merely load increased risk onto the project. Outsourcing is not designed to fix a process that is ineffective to begin with and although most providers will be happy to help you, it will work out more expensive than ironing out the problems ahead of embarking on the outsourcing project.

Collaborative working is vital It is important to remember that you still own the process that you are outsourcing and you should never aim to completely wash your hands of it. A successful outsourcing partnership is based on continuous involvement and co-operation between both parties and a responsible, experienced provider will ensure that this happens.

TOPTIP TOP TIP

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The checklistThis checklist highlights what you should include in your business case, plus other key considerations for selecting a supplier.

Access to in-depth HR and payroll expertiseThis will minimise risks and ensure the most effective and efficient best practice processes, both for your HR and payroll operations and wider organisational processes. How might you benefit from having this additional expert knowledge?

Risk management and compliance How do you keep up to date with ever changing HR and payroll legislation? Is there anything that you are particularly concerned about now and in the future? Do you feel able to manage the risks associated with this? Would you prefer to leave this long winded task to the experts?

Reduce operating costs Include measurements on how much time and effort is spent on repetitive tasks. How much time is wasted? What areas do you think require the most improvement? And how might best practice services and technology help to increase efficiencies and generate short and long term sustainable value?

Improve service qualityWhat effect might the transformation of service quality have on your employees and the wider organisation? Perhaps increased employee engagement and empowerment?

Access to new technology How does your current HR and/or payroll system operate? Would you benefit from having one single platform, single database solution? Would you benefit from having best practice templates within the system for the processes that you choose to keep in-house? Would you benefit from the visibility of personnel information needed to inform strategic workforce decisions such as those involved in talent and performance management? Do you have any current IT challenges? Would you benefit from painless upgrades, extended web access and continuous system maintenance?

Relieve internal HR resource pressure How much time and resource does your current HR and payroll workload consume? Could you benefit from freeing up valuable resource to focus on strategic HR priorities?

Everyone needs a checklist...

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The checklist continued...

FlexibilityIs the potential supplier flexible enough to deal with changes to your requirements as your business evolves?

Can you identify the data you need to run the contract and the business? Ask the question of your supplier, what do you give me? How is it accessed? What is the strategic value of the information? What is it telling me about my business?

Operational Governance Does the supplier offer a suitable governance model? Do they recognise the importance of ongoing governance? Is your team ready to manage an outsourced contract, do you have the skill in-house? What training do you need to fill the gap?

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Things to consider when shortlisting suppliers

The need for flexibilityWith the market reluctant to over-outsource, smart businesses exhibit certain attributes when setting out with a new outsourcing strategy. In order to mitigate risks and to take an informed and strategic view, take advantage of the flexible opportunities that are available. Many take the combined solutions route – by outsourcing smaller processes at first, with the ability to add additional services and scale up and down as required, your project will be given the best chance of success.

As your partnership evolves you might make the decision to build up your service and outsource further elements of your HR and payroll process to your chosen supplier. Many organisations decide to outsource their payroll function initially, with a view to adding HR service elements at a later stage.

Businesses evolve over time and the requirements at the outset of any outsourcing agreement are unlikely to remain consistent throughout. As your business grows or changes shape, it is important that you have a flexible strategy in place, enabling you to modify the levels of service. As Gartner identifies, in fast changing business environments, an outsourcing solution designed today may not be suitable tomorrow.

Simply retaining functions in-house or going for wholesale outsourcing does not always meet requirements. There is no “one size fits all” solution. The outsourcing provider should offer varying levels of service. This will allow you to retain certain procedures in-house through access to the underpinning technology, whilst outsourcing others.

Questions to ask• Ask your potential outsourcing partner which other businesses they work with.

• Does this suggest that they are flexible enough to meet the demands of different organisational requirements? I.e. do they work with companies with a range of employee numbers?

• How have they coped with customers who have changed the structure of their organisation?

• How long has it taken to get the new service up and running?

• Ask for specific examples of how the outsourcing provider has supported their customers’ business changes.

If organisational change is something that you see in your future business strategy the flexibility of the supplier will be vital.

An outsourcing solution designed today may not be suitable tomorrow(Gartner)

Outsourcing HR is like an a la carte menu: businesses can pick and choose what they implement based on their needs, situation and projected growth. (Aberdeen Group 2015)

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Finding the right matchWhen shortlisting potential suppliers you might consider a range of issues including organisational culture, HR and payroll industry experience, financial performance, trading stability and existing customer relationships. Think about how these can be measured and ask the providers to do the legwork by researching this for you. Find out how many customers they support, what their market share is, which customers they work with in your sector, their financial records for recent years and their trading stability. Most providers will already hold this information in the form of analyst reports so this information should be relatively easy to come by.

Don’t forget the softwareHR software and technology is often overlooked, mainly because of cost or lack of knowledge and expertise. Many organisations rely on out of date, clunky, archaic processes such as spreadsheets and paper forms – all increasing the administrative workload. If you choose the right supplier, they should be committed to innovative technologies and services, which will impact positively on you and your people.

Cultural fit is essentialFinding a supplier with the right levels of expertise, quality of people and latest technology is of utmost importance, but it is also crucial that the supplier appreciates and fits in with your internal culture.

Cultural fit is all too often missed, so ensure that you find a supplier that is keen to understand how your organisation and people operate. Remember that your chosen supplier will have close contact with your workforce and in effect will become an extension of your own business, so the ongoing relationship is a make or break factor in outsourcing success.

Take time to consider the cultural fit. Partnering with an ill-fitting business for the delivery of people processes such as HR and payroll could have very damaging effects on levels of engagement within your organisation.

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Visit your potential suppliers

This will give you the opportunity to observe how people operate and work together, how they communicate and also give you the chance to meet the teams you may be working with in the future. This is a great way of evaluating if they will be a good match for you. It’s also important for you to educate your chosen supplier about your corporate culture before initiating the SLA, so they too can understand how you operate and communicate. It works both ways. Building a great relationship takes time, and for the relationship to develop and flourish it’s important to communicate your expectations throughout the process, and take steps to ensure you and your chosen supplier can work together on a long term basis.

Take advantage of an onsite tour and make sure that you understand what the next steps will be before you decide on a preferred supplier.

TOPTIPTOP TIP

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Due-diligence should be carried out with the supplier

When creating your shortlist remember that access to in-depth HR and payroll expertise should be given considerably more value than broad outsourcing expertise. Take advantage of the supplier’s expertise and invite them to carry out some due-diligence meetings. Not only does it allow them to firm up on their solution and price but it gives you the opportunity to meet the people you will be working with to see how they operate and if you can see yourself working together in the long term.

The potential supplier should be able to identify key areas for improvement and set reasonable objectives where significant cost savings and efficiencies can be made. This is the ideal opportunity to review your HR and payroll operations and decide which parts of the function could be outsourced and what parameters should be established for this.

Experienced consultants will have worked with many organisations similar to your own, so take advantage of this experience and look at previous successes in order to define realistic objectives for your own project.

Check that their people have the right knowledgePeople are vital to any outsourcing partnership - from the service team that your employees will deal with on a day-to-day basis, or those that will be managing the ongoing governance of the partnership as it evolves.

Some questions to ask:• How big is the team dealing with the business as

usual service?

• Are the teams CIPP qualified? CIPP is the Chartered association for payroll and pensions professionals in the UK and is the recognised industry body for payroll best practise.

• Are the teams CIPD qualified? CIPD is the professional body for HR and people development, and are the most widely recognised professional qualifications in the field of Human Resources.

• Do they have a Payroll Quality Partnership (PQP) accreditation? This accreditation acknowledges best practice in the development of payroll people.

• Do they hold a Payroll Assurance Scheme (PAS) accreditation? This is an industry wide recognised accreditation which demonstrates that the supplier is dedicated to compliance and best practice standards.

• Are they accredited Investors in People? Investors in People is a management framework for high performance through people. This prestigious accreditation is recognised across the world as a mark of excellence.

• Has the supplier been recognised by any industry bodies for the quality of the services and technology that it provides, such as the National Outsourcing Association? The CIPP? The CIPD?

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The Outsourcing Contract

When and if to sign on the dotted line...Drawing up the contractual agreement is an essential aspect of any outsourcing arrangement and will involve negotiations between you and your preferred supplier. The contract will detail the scope of the project and define the roles, responsibilities, priorities and guarantees in place.

You should already have a clear idea of the scope of the project, which might be as narrow as payslip printing or as broad as the complete outsourcing of your HR and payroll service. Ensure that this is clearly defined within the contract in order to guarantee clear communication and understanding with your service provider.

The Service Level Agreement (SLA)There should also be an SLA in place which will provide a formal statement of performance requirements, including the nature and level of services to be provided. The SLA will also define key performance indicators (KPIs) which should be monitored to ensure consistent service quality.

The SLA provides an essential tool which can be used to mitigate the risks of outsourcing, detailing clear benchmarks for service levels and ensuring the right level of collaboration. Before signing the contract it is essential that there is a thorough understanding of roles and responsibilities of each party.

What should the SLA include?

Remember:If conf licts arise during

the outsourcing partnership,

you may need to refer back

to the terms of your contract. So work with your

potential supplier to ensure that the terms suit

your requirements

What service is included and at what cost. By clearly defining service and costs the SLA should mitigate the risk of hidden charges by ensuring pricing is transparent. It should also offer some room for flexibility at certain points, such as the number of employees on the payroll up to a certain percentage change. This will ensure that you can expand or contract your service without fear of additional costs – you might have a seasonal workforce for example

Allocation of task responsibility

Level of service and KPIs

Procedure for monitoring and review

Dispute/complaint management

Procedure for reviewing, revising and renewing agreement

Sanction or service credit agreement whereby the compensation is laid out should the provider fail to perform against any of your set criteria

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The purpose of any written agreement surrounding this type of partnership is to define the responsibilities of the two parties and the obligations associated with each.

Consider what you are capable of managing and make sure that the agreement is based on the appropriate level of services and degree of outsourcing. It is also worth questioning whether there is any flexibility within the contract to alter the KPIs or to re-define responsibilities. Might you want to outsource further elements of your HR and payroll function? How flexible is your provider willing to be?

Remember that any conflict which may potentially occur in the outsourcing partnership may eventually be resolved by referencing the terms of contract, so make sure that you fully understand what you are agreeing to before signing on the dotted line!

Ongoing governance is vitalAnyone embarking on an HR and/or payroll outsourcing project will have diligently digested the operational delivery and measurement schedules set out in the contract. When it comes to the governance model, many people only give it a cursory glance. It is crucial to remember that the supplier’s governance model is just as important as the contract and SLA.

Ongoing governance is vital to support your HR strategy and strategic leadership activity. Governance enables the supplier and your business to embrace and manage change effectively, sustaining the delivery of promised value.

Governance provides: • Active direction, oversight and control

• Helps to assess current operations and feedback

• Allows adjustments to ensure alignment with HR strategy

Governance is just as important as the outsourcing contract and service level agreement.

Governance - Top tips Don’t let day-to-day operations get in the way of ensuring a thorough approach to your outsourcing partnership from day 1. Millions of pounds have been lost on HR Outsourcing (HRO) contracts due to poor governance.

Collaboration, trust, and openness are vital in HR Outsourcing (HRO) as they allow for issues to be aired, diagnosed, and rectified before the contract waving begins. Contractual disputes are not in either party’s interest and add nothing to solving issues other than creating further costs.

Ensure that your HR Outsourcing (HRO) supplier devises an effective governance structure that suits your organisation and theirs. Effective governance and ongoing collaboration is vital to maximise the value that can be reaped from outsourcing.

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Don’t take your choice of provider lightly

Other considerations for the selection process

Throughout the selection process, there should be several key questions on your mind:• Does the service provider have a good track record?

• Will my organisation be important to this company?

• Is HR and payroll the provider’s core focus?

• Does the supplier provide a modern best practice HR and payroll solution?

• Can the supplier provide proof of the strength of its services and the underpinning technology?

• Can they provide evidence of ROI and value in use?

• Will the provider understand my organisation and its objectives?

• Is the company financially stable?

• Does it have an established reputation in the industry and does this suggest that the company will continue to provide good quality service in the long term?

• Is there a detailed and signed off service level agreement (SLA)?

• What about disaster recovery?

Collaboration and partnership with your provider is essential and you should consider whether you will be able to build a beneficial working relationship. Find out about user groups, development meetings, customer panels, customer conferences and customer communications.

There are many sources of information at your fingertips, so you can start to explore the marketplace straight away. Most information will be available on company websites, so this is the easiest place to start. Also check out the HR and payroll trade press including the directory listings at the back. Remember not to confine your search to one source as you may miss out on key players in the market.

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What happens next? The process involved in choosing a suitable outsourcing supplier and kicking off the first stages in the relationship is much different to that of a simple software agreement. But where do you start?

Shortlist your potential partnersOnce you have read your guide to outsourcing, you should be able to identify what to look for in your partner and who would best fit within your organisation. Remember to focus on flexibility, quality, software and technology requirements, cultural fit, plus knowledge and experience.

Discuss your requirementsContact your chosen supplier for more detailed information on their offerings and they should be able to design the ideal HR service to meet your needs. Remember, they are there to help you, so don’t be scared to ask as many questions as you need!

Due-diligence & Benefits AnalysisOnce your requirements have been discussed, it’s important that your chosen supplier works in partnership with you to complete a due-diligence exercise. This will assess your current systems and processes, and help you to understand the benefits of adopting an outsourced service. This is also an ideal time to look if your supplier is the right cultural fit for your organisation, and see how well you can work together.

Business Case Once the due-diligence exercise has been completed, your supplier will assist you in building a powerful business case to explain the rewards of HR and payroll outsourcing relative to your organisation and your unique requirements. You will also be able to use your checklist featured in the guide to ensure all the important points are included!

Benefits RealisationOnce your service has gone live, your partnership should continue to evolve with your chosen supplier. Regular reviews and on-going governance should ensure that the service continues to meet your needs. It is also important to refer back to your SLA if you’re in any doubt of your agreed expectations.

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About MidlandHRAs customer requirements and drivers for outsourcing become increasingly broad and sophisticated, providers with unequal strengths will find themselves in a range of situations – with some suppliers having extensive outsourcing expertise but no in-depth HR knowledge and others having a long and established history of HR and payroll outsourcing but offer poor or no supporting technology. At MidlandHR we benefit from a specialist, exclusive focus on talent management, HR, payroll and workforce planning. We find ourselves in the rare position of providing expert outsourcing services from the UK, authoring our own software, having full ownership of our private cloud data centre and providing a range of flexible services from our dedicated UK based HRO centre in Nottingham. This enables MidlandHR to offer a single workforce solution to suit customer needs through blended outsourcing, software and consultancy services.

Recent awards success includes Outsourcing Service Provider of the Year at the National Outsourcing Association Awards, Service Provider of the Year at the CIPP Awards, Software Product of the Year at the Payroll World Awards and HR Supplier of the Year finalist at the CIPD People Management Awards. This industry recognition is testament that, with our unique proposition, targeted SLAs, and an emphasis on expert services delivered by CIPD and CIPP qualified teams, MidlandHR is well placed to deliver HR and payroll outsourcing excellence.

MidlandHR supports over 10% of the total UK workforce through combined outsourcing, software, and consultancy services. Our award-winning solutions are used to manage one third of the UK’s local authority and police staff, almost 100,000 employees in retail, a quarter of university staff and over 76,000 people working for charities.

T.M.Lewin, Severn Trent Water, Brentwood Council, Hope Construction, Harwoods, Antenna International, UK General Insurance, Telegraph Media

Group, Nandos, The Salvation Army, Action for Children, Home Group, London Clubs International, Freeths Solicitors, Goodyear Dunlop, Edinburgh Council, East Kent Shared Service, TJX Europe, British Transport Police, Law

Officers’ Departments, Laing O’Rourke, Skanska, Interserve and more.

Our customers include:

© Midland Software Limited 2015. Registered office: Peterbridge House, 3 The Lakes, Northampton NN4 7HB.

No part of this literature may be reproduced without the written permission of MidlandHR. All content correct at time of going to print.

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