I’ve debated HRO definitions here before. Is HRO any type of human resources outsourcing even if it’s just payroll to ADP? Or does HRO mean full BPO for HR functions (HR BPO)?
It’s quite arguable that you should define HRO as any type of outsourcing for any HR function. If you took this definition, there are literally tens of millions of HRO contracts sitting out there – mostly with payroll vendors like ADP and Ceridian or benefit vendors. But you would also say then that an organization outsourcing nothing but background checks is an HRO client.
There is another level of management that I think of with the HRO vendors like Hewitt, Accenture and Convergys. Above and beyond tasks, they provide end to end function management. Most of the time in their contracts, they are also providing some level of multi-function process management. So instead of just doing payroll gross-to-net, check printing and tax filing as in traditional payroll outsourcing, they’ll also manage the process and provide end to end service, and they’ll also do the HR and end to end benefits while they are at it.
Traditional HR outsourcing simply means task and transactions. Today’s HR BPO vendors are providing services under an umbrella called HRO, and I think the HR community is understanding that acronym (HRO) to mean HR BPO. When you hear me say HRO, I’ll be referring to HR BPO. Otherwise I’ll say “traditional outsourcing.”
5 responses to “HRO – Defined”
Original post: HRO – Defined by at Google Blog Search: hr
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I’m eager to know more. Do let us know your views on HRO on a whole…
Sucharith:
I’ll be spending the next 3 days this week on HRO. Stay tuned.
[…] – Defined dd at systematicHR HRO – Defined -gives us a lowdown on the difference between HR BPO and HRO. Insightful, specially for India from […]