In today’s environment, unprecedented turnover rates, heightened requirements from employees for a flexible work-life balance, and an increasing demand for improved, innovative, and engaging employee-centric technology systems have driven organizations to refocus on the needs of their workforce and their business.
As organizations rise to the challenge, it has become abundantly clear that well-designed and thoughtfully configured talent management systems are critical technology and key to enabling the strategic recruiting, deliberate learning & professional development programs, and streamlined employee onboarding required for business to thrive. With an increased focus on digital transformation of the entire employee experience, organizations are expanding their HR technology ecosystems and exploring ways to support the maintenance, optimization, and enhancements that come with modern technology platforms. Outsourcing administration of talent management systems is one way businesses are bridging the gap. In this post, we’ll explore why this solution is growing in popularity and how to know if it is right for your business.
Product Knowledge, Technical Expertise, and Industry Best Practices
One of the key reasons for the movement toward outsourcing talent management system administration is the blend of product, technical, and industry knowledge an external administrator brings to an organization. With access to a high level of expertise, businesses position themselves to not only maintain their systems, but also to continuously optimize and improve their platforms based on the best practices found in their industry. What’s more, when resourcing an outsourced administrator, businesses aren’t just working with that specific individual – they have access to the collective wisdom of the company to which the administrator belongs. This is a key differentiator between insourcing or outsourcing administration. A full-time internal admin may have the platform knowledge to manage the day-to-day activities for a system, but they will lack access to this experienced network to resolve any complex challenges that may be encountered.
Another reason businesses are choosing to outsource administration is to focus internal resources on more strategic business priorities. An outside consultant managing the day-to-day administrative responsibilities of a talent management system gives internal resources the opportunity they need to focus on prioritized strategic, innovative, or company-wide initiatives that will have lasting impact. Additionally, businesses that use outsourced administrators effectively have learned that if they spend time with the consultant effectively, they can informally upskill their team members so that when conflicting priorities are no longer an issue, the business can take over the administrator responsibilities and be self-sufficient.
Fill the Gaps Left by Employee Attrition
It’s no secret that in many businesses, impacts from the Great Resignation have left huge gaps in key positions that require specific and often niche expertise. The talent management space is no stranger to this phenomenon and crucial administrator roles are now empty. Identifying and recruiting a new talent management system administrator can be difficult, as it requires a deep understanding of the company, the industry, and it requires familiarity with the talent management system. Outsourcing administration helps to temporarily backfill voids left by attrition with a competent talent management consultant, well-versed in the aforementioned elements, while a business evaluates the longer-term solution to the administrator position. Outsourcing an external administrator can also be cost-effective as the business is not committed to the resource in a full-time capacity. Another benefit is that while the business searches for the new administrator, the consultant can use their extensive product knowledge and experience to assess the current state of the system, document existing processes and configurations, and recommend optimization opportunities so that when the new full-time administrator is hired, they are able to hit the ground running.
Invaluable Outside Perspective
Beyond the skillset and technical expertise that outsourcing administration provides, an external administrator can also bring an invaluable and unique perspective to your organization. As an outsider, they are situated at a rare vantage point that will allow them to offer novel strategies and solutions that may be difficult to see by those so close to the current day-to-day processes. They can draw upon their experiences with similar organizations to:
- Identify key areas of improvement
- Diagnose common pain points that users experience
- Implement creative solutions that have worked for other organizations
These recommendations aren’t limited to the talent management system alone. They can be suggestions for adjustments to related business systems, processes, or even perspectives on addressing strategic HR challenges within the organization. It is this type of insight that informs progress towards improved efficiency and increased employee engagement and satisfaction.
While it can serve to fill a gap for a specific time and place, future-focused businesses are finding that outsourcing administration can be a catalyst for rethinking the way they operate and improve the talent management systems that support their most important asset: a modern workforce. Contact us to learn more about the benefits of outsourcing administration for your talent management system.