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Your Guide to the Shifting Landscape of HR Outsourcing

Each company approaches the challenges of recruitment, retention, hiring, and payroll services through the lens of their particular circumstances. For some companies, financial realities and a lack of appropriately skilled personnel contribute to the utilization of outsourcing with respect to Human Resources management.

Determining the best course of action often involves a hard look at the available outsourcing options and a close analysis of in-house resources.

As HR continues to be redefined by executives looking for the most efficient use of HR personnel, changes in the HR landscape inform big-picture shifts in the corporate approach to personnel management and outsourcing. Employers, contingent workforce management and the labor force each react differently to the delicate nature of the HR climate, leading to a plethora of hiring scenarios. Improvements and innovations follow from necessity.

Outsourcing vs. In-house HR Strategies

An article in Staffing Industry Analysts laid out two scenarios comparing companies’ contingent workforce management programs, and how their consideration and transition from in-house to outsourced, and vice versa, was handled.

Both companies were similar by way of their core metrics; age of their CMW programs, money to spend on temporary labor, diversity goals and number of headquarters and locations. The decision to outsource depended on a number of factors, namely changes in the use of resources dedicated to contingent labor and the value of contingent labor, which dropped during the economic recession.

The second entity in the piece piggybacked existing success and cost-savings into a gradual shift to phase-out its managed service provider. When it became clear it was the right time transition, the groundwork was already laid.

“Both models have their place; know when it is time to change. Either way, complacency can kill either program design – focus needs to be on engaging the entire scope of stakeholders,” the article suggests.

OneSource Virtual Launches New Service

OneSource Virtual unleashed a new Finance and Accounting Outsourcing service for Workday Financial Management customers. Workday provides enterprise cloud applications for human resources and finance, according to information from Market Watch.

The new FAO service streamlines input and categorizes invoices to automate the procure-to-pay process. Customers will have improved cash flow and greater efficiency. “Offering Finance and Accounting Outsourcing gives our customers another advantage as it relates to accounts payable, payroll operations and human resources outsourcing as a whole,” Brian Williams, co-founder and CEO for OneSource Virtual, is quotes in the piece as saying. “It’s another way OneSource provides innovative and comprehensive solutions for Workday customers that create value and a high return on investment.”

AEGON to Acquire Mercer HR Segment

Transamerica corporate parent AEGON is planning to buy Mercer HR Service’s “defined contribution administration business” in the US. So reports The Gazette.

Mercer Administration handles the outsourcing of HR needs like retirement and health benefits, and has an office in Iowa City. “This is an important strategic development,” said Mark Mullin, president and CEO of Transamerica, in a statement.

“It further strengthens Transamerica’s leading position in the U.S. retirement sector. This development supports our aim to further grow and diversify our customer base, while continuing to expand our offering of fee-based retirement solutions.” Once the transaction closes, Transamerica Retirement Solutions will add $71 billion in assets, bringing its total to $216 billion. It will add 400 employees in Massachusetts and Texas.

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