Standards, Practices, HRO, Transformation

HROA to Set Standards & Practices for HR Transformation and Outsourcing

12 Jul 2007 | (News) | Richard Crespin

You wouldn’t buy a car without standard weights and measures, so why would you buy HR services and outsourcing without them? 

An accepted standard for what constitutes a gallon, a minute, and a mile are necessary for you to know that 45 miles to the gallon and going zero to 60 in four seconds mean “goodness.”  Efficient markets need accepted standards and practices.  Without standard units of weights and measures, common practices for evaluating effectiveness, and a common lexicon no market will function properly.  The time has come for HR practitioners to have these same types of tools at their disposal for assessing “goodness” in HR outsourcing relationships.  And the HROA and its members have stepped forward to help bring this about.

In January of this year, the HROA Board of Trustees established a Research & Standards Committee to, according to its Charter, “Encourage the development of research and standards programs that advance the state of practice in HR Transformation… [and] set and administer standards for HR Transformation and the outsourcing industry.”¹ Since that time, the Committee has made excellent progress in putting forward a process for developing, setting, and maintaining standards and practices as well as putting forward its first set of standards and practices for public consideration.

Under the process adopted by the Committee, standards and practices may fit into one of three categories:²

1. HROA Recommended Practices – useful methods used by a broad plurality of organizations.
2. HROA Best Practices – common methods and practices backed by definitive data gathered through evidentiary research demonstrating their effectiveness.
3. HROA Standards – those best practices that, if excluded from operations, may actually cause harm to the industry or its participants.

Anyone may submit a standard or practice for consideration to the Committee.  Once submitted, the Committee engages in a thorough review and makes an Initial Ruling, classifying acceptable submissions into one of the above categories.  Following an Initial Ruling, submissions are put forward for Public Comment and published in the HROA’s media.  Anyone may make comments during the Public Comment period either directly to the Committee (by sending an email to comments@hroa.org) or through the blog established by the HROA.

To date, the Committee has received two submissions, put forward by Deborah Card of TPI.  The Committee has made an Initial Ruling categorizing these submissions as Draft HROA Recommended Practices and has put them forward for Public Comment.  These submissions address:

1. Draft Resource/Pricing Units (click on the title to see details of the submission)
   a. Guidelines for Pricing Methodology
   b. HROA Resource Pricing Units
   c. HROA Resource Unit Definitions
   
   Comment close date: August 20, 2007
   
2. Draft Service Level Agreements (click on the title to see details of the submission)
   a. Guidelines for Service Level Methodology
   b. HR Critical Service Levels
   c. HR Key Measurements
   d. HR Critical Definitions
   
   Comment close date: August 20, 2007

Following the Public Comment period, the HROA staff will compile all of the feedback and present it to the Committee.  The Committee will review the feedback, make recommendations for improvement or modification, and proceed toward a Final Ruling.  If the Committee makes a favorable ruling, the submissions would then become Accepted Practices.

As the only independent organization representing all participants in the industry, the HROA has taken up this charge to improve the practice of HR Transformation by overseeing and accelerating the development and adoption of effective industry standards and practices.  As part of this process, the HROA wants to encourage all interested parties to play a role.  Opportunities to contribute include:

• Serving on the Committee.  Any member in good standing of the HROA may be considered for membership in the Committee.  The Association tries to maintain a balance of representation from all major constituencies, including buyers, providers, sourcing advisors, attorneys, and academics.  Current vacancies exist for additional buyers, attorneys, and academics.  Additional provider and/or sourcing advisor members may also be considered.
• Making Submissions.  Anyone may make a submission.  For details on making a submission, please click here.
• Providing Public Comment.  Anyone may comment on the submissions under review.  To learn more or to provide comments, please click here.

The time has come for HR practitioners to have the same level of transparency and comparability in making complex decisions like HR outsourcing as they do in making basic decisions like buying a car.  The time has also come for you to play a role.  The HROA needs your input and invites your active participation.  Get involved now and play a critical role in this pivotal moment to advance the practice of HR transformation and outsourcing.

Members of the HROA Research & Standards Committee

• Pat Berklich - Kelly Services
• Adam Bleifeld - HROA
• Elizabeth Boudrie - SharedXpertise
• Karen Bowman - Convergys
• Deborah Card - TPI
• Richard Crespin - HROA
• Guy Joel deLhoneux - Unilever
• Sarah Dionne - Fidelity
• Scott Gildner - TPI
• Pat Goepel - Fidelity
• Lisa Henneberry - Fidelity
• Mark Hodges - EquaTerra
• Carrie Hotz - Convergys
• Synco Jonkeren - SAP
• Larry Kurzner - Accenture
• Linda Merritt - AT&T
• Kevin Prue - Prudential

¹ Source:  The HROA Research & Standards Committee Charter.
² Source:  The HROA Industry Standards & Practices Process Document, June 2007.

Author: Crespin, Richard
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