Outsourcing for Uncertainty

The United Kingdom is undergoing unprecedented times of uncertainly.

The challenges faced with the potential Brexit fiasco have exposed businesses to new levels of scenario planning which, for many businesses and decision makers, is unchartered territory. Short of staring into a crystal ball, a new age of strategic leadership is being deployed as a matter of immediate requirement to cover the myriad of possible outcomes, as UK businesses scramble for solutions in the event of a ‘No Deal Brexit’.

Hence it is not a surprise that during these times of uncertainly the requirement to mitigate risk whilst keeping costs at a minimum, whilst remaining competitive, compliant, and relevant is a balancing act most businesses find themselves in.

Outsourcing is an obvious solution to alleviate that risk. It brings access to specialised capabilities, continuality assurance, performance functionality, resource management efficiency and most of all cost controlled benefit solutions.

When it comes to your most valuable resource, the management of human capital is a very complex but critical component of the business operations. In a fierce market place where employment opportunities are becoming more competitive, the requirement to offer the most attractive, yet flexible staffing solution is ever more pressing for HR and procurement managers.

So is outsourcing the right direction for your organisation? The following points need to be considered.

• What are your organisation international mobility, cultural and growth goals?
• Does outsourcing fit with your overall strategic goals and initiatives?
• What is the organisational plan for deployment of HR in the short and medium term?
• What is the anticipated international deployment, relocation volumes and budgetary plan?
• Are you comfortable with working with third party administrators?

To evaluate outsourcing further you should consider discussing this with the relevant stakeholders within your organisation and establish a task force with representation from HR, finance, procurement and legal. Each department will view the requirement with a different perspective, and it’s likely that a subjective, but hopefully objective, discussion will emerge into a pragmatic solution to place your HR requirement into the hands of a Professional Employment Organisation (PEO).

When developing the specifications for your new outsourced partner, it’s important to evaluate your current processes and policy in an honest assessment of how you are currently meeting the needs of your internal requirements and the operational and commercial demands of your clients. By documenting and clearly articulating the project parameters, the expectations and goals should logically fit an outsourced PEO solution and make the selection of an amicable PEO straightforward.

Selecting a PEO partner that meets the essential requirements of employer of record (EoR) capabilities, proof of established legal entity offices, and partners with functional HR reporting technology and certified compliance documentation are the key factors in the decision process. Additionally, does the PEO offer flexibly and growth opportunities into multiple countries – do they have the capabilities to move into other jurisdictions should you need to expand further? It’s important to source a PEO partner that understands your holistic company needs, that reflects your culture and resonates with your company ethos – after all the PEO will be serving as an extension of your company and co-employing your employees.

Using a Request for Proposal (RFP) process to select a PEO partner is an efficient method to evaluate your specific needs and identify the expertise and flexibility of the prospective PEO. This is the opportune time to outline the scope of the PEO contract to understand the set up process, the deliverables, the pricing agreement and the key performance metrics. The length of the contract is usually a minimum one year and is often open ended as this variable component is subject to performance and business demands. A client-centric PEO will also ensure the relevant and valid insurances (professional indemnity, public & employers liability) are included as part of the compliance offering.

Cloud based HR portals are used as the hub of communications between the PEO, the client and the employee. We recommend a secure, trusted HR portal as the key platform for correspondence, documenting, data management, and reporting on all facets of the HRM requirements. Modules such as onboarding, people management, performance & absence management, and career succession along with timesheet, invoicing, policy & financial reports are accessible 24/7 in real time and can be confidently shared between all stakeholders.

Whether your requirement is to deploy one or one hundred employees in global locations, Stipenda has PEO solutions covering 65 global jurisdictions and has been operational for 16 consecutive years supporting MNC’s, SME’s, independent contractors and agents alike. Our international offices are represented in UK, Germany, Ireland, Hungary, Singapore, Hong Kong, Philippines, Canada, and North America and we are experts in the industries of Technology, Education, Medical, Energy and Finance.

Stipenda is a private limited company of the United Kingdom, which is part of the Stipenda Group of companies which are active members of NAPEO (National Association of Professional Employer Operations) and SHRM (Society for Human Resource Management). We have facilitated in excess of over 5,000 projects worldwide, employing more than 20,000 individuals and boast a high retention rate with 65% of revenues coming from long term engagements. The Stipenda Group invests in world-class technology including secure transactional treasure platforms and procures integral partnerships with international payroll, compliance, taxation, human resource and legal experts in each country of operation.

Visit for the full range of services or contact us directly in UK +44 (0) 330 3800 161 or USA +1 800 910 7847

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