20 Questions to Ask Prospective HR Outsourcing Vendors

A couple months ago, we gave you five reasons why you should consider outsourcing your human resources responsibilities. Now, you’ve probably put some thought into doing just that, and it’s time to research potential outsourcing vendors and make a list of all the questions you want to ask each one. This list is by no means all-encompassing, but it will generate some additional questions of your own.

  1. What services do you support—payroll, recruiting, benefits, administration, etc.?
  2. What size company do you typically support?
  3. What is the experience and educational background of the staff that would be working on my projects?
  4. How would you handle our partnership if we’re located out of the area?
  5. How frequently would you provide reports for us?
  6. Could the reports be modified to our specific requirements?
  7. Can you provide us examples of other client-specific reports?
  8. What administrative support would you require from us?
  9. What type of educational process do you typically use when starting a new engagement?
  10. Who on your staff would be doing the training and what is his/her experience?
  11. What technology do you use for outsourcing, and would we have access to that?
  12. Is there an additional cost for using this specific technology?
  13. How long does the implementation typically take from the time the agreement is signed?
  14. Is the implementation team the same as the day-to-day support staff?
  15. What additional support services do you provide, and what are the costs?
  16. What additional services do clients typically require?
  17. How do you stay current on compliance issues, and how would you communicate those to us?
  18. Is there an additional cost for compliance work required by us?
  19. What is the typical term of the agreement?
  20. What is your cancellation policy?

This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.

About the Author