Deciding to outsource a business’ HR functions is a huge step. As someone who offers third-party services, you will need to convince your clients to trust you. This way, you can help free up the business’ personnel and take care of more strategic roles.
If you are offering such services, you need to know how to draft an HR outsourcing proposal. Here is a guide on how to create your proposal.
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Why Businesses Should Outsource Their HR Functions
Offering your services means that you will accept the delegation of a company’s HR functions. You will have to perform various HR roles as a third-party provider.
Depending on the client’s contract, your role as an outsourced professional can largely differ among functions. These can include the following:
Payroll
This HR function covers compensation-related things, such as payroll, salary surveys, and job evaluation systems. You can also handle related tax duties to free up your client’s time if qualified.
Workforce administration
Another HR function that you can outsource is workforce administration. This refers to the development and management of HR information systems.
Recruitment
You can also offer external recruitment for employers who are swamped with work. As the provider, you will need to screen and interview potential candidates.
Employee rewards and recognition
You can also assess a company’s employees and set the individuals performing well. By offering this service, you can free up the responsibilities of the company’s HR team.
Free HR Outsourcing Proposal Template
You can use a tool to help you customize the information you include in the proposal. With a template, you can save time creating a document from scratch.
HR Outsourcing Proposal
How to Create an HR Outsourcing Proposal
Now that you know the different HR functions that you can offer, it’s time for the nitty-gritty of the actual HR outsourcing proposal creation process. This document usually includes the following information:
Scope of services
When writing an outsourcing contract, you must clearly define the scope of the services you provide. It will also include an itemized basis for the fixed amount of each service that you will offer.
Pricing
The first part of the document includes a base price for the different services you provide. But you still need to have several pricing methods based on the following:
- Predictability – Provide a quantifiable price for the service
- Efficiency – Give clients an incentive that will drive down their costs
- Competitiveness – Have a competitive price throughout the contract’s lifespan
Service-level fundamentals
As a service provider, you must thoroughly understand the type of service your client is looking for. When writing an HR outsourcing proposal, you have to specify the different services the company is looking for.
Exit plan
Since this document is a legal contract, you must include information on termination rights. This is particularly helpful in a critical service-level failure or poor performance.
These are usually the types of information you will find in a proposal.
Common Mistakes in Drafting HR Outsourcing Proposal
Writing a proposal means you are serious about the business you are offering. Since it is your one shot to introduce your business to a client, you must make it right. This means you must pay careful attention to understand what a client needs.
As such, here are some common mistakes that you should avoid in creating the proposal:
Not understanding what the client needs
Before you submit your proposal, you have to ensure it already contains the information your potential client needs. Take the time to research the business and offer a service that they will likely sign up for.
Not customizing the proposal
You should also avoid sending a generic proposal to a potential client. Make sure to edit the template you are using to address the specific pain points of your reader.
Not providing a clear value proposition
The proposal you submit needs to clearly outline the benefits and values a potential client will get. Make sure to highlight how you can improve a business’ HR efficiency.
Not being upfront with pricing
Your proposal should include a breakdown of the costs and services you offer the client. This will give him an idea of what he will be paying for.
Not properly formatting the proposal
The proposal you submit should be properly formatted and free of grammar errors. Before submitting the document, see if it is visually appealing and well-structured.
Avoiding these mistakes will improve your chance of landing your dream client.
How Fill Helps With Your HR Outsourcing Proposal
Fill offers a variety of templates that you can customize accordingly. Once you complete the template with your information, you can send it to your potential clients. They will then have a way to sign the document directly through Fill’s tool.
Sign up for a free account today and start writing your proposal.
