Compensation management co-sourcing: The optimal partnership
27 April 2009
Compensation management co-sourcing is not outsourcing!
With outsourcing, employers aim to shift discrete, straightforward transactional and administrative tasks from HR’s to-do list to an outside vendor that is able to accomplish those tasks more efficiently. The goals of outsourcing are simple: save money, save time, and improve service.
The goal of co-sourcing is more ambitious.
Co-sourcing is designed to create a more robust and efficient compensation function — within a single country, regionally, or across the globe — by partnering with a service provider able to augment internal resources in whatever way is needed. Companies that form co-sourcing partnerships are able to rely on their partner’s expertise and resources as a supplement, complement, or replacement for internal staff. Unlike outsourcing, which would simply move a task or process out of the organization, co-sourcing brings in additional resources that can be applied in a flexible manner across the full responsibilities of the compensation function — from technology and transactions to analysis and strategic design.
We recognize that strategic thought and innovation must be balanced with operational service delivery. Mercer is the only consulting firm that has created a distinct global business line around partnering with clients to manage the compensation function – compensation management co-sourcing. Our compensation co-sourcing solution is a well-established and proven function with ongoing partnerships in place on a global basis to name-brand clients, in virtually all industries, for more than six years.
Forging a partnership
Through a co-sourcing relationship with Mercer, you can:
Realize operational and financial efficiencies related to staffing costs, technology acquisition and market data
Eliminate or reduce staff time spent on transactional activities
Become more efficient and effective in the delivery of compensation services to your organization
Shift resources to other higher value/strategic areas of compensation management
Implement global compensation program consistency, governance and reporting
Mitigate the need to hire staff needed only during peak periods or for special projects
Access Mercer’s Human Capital expertise including specialties such as sales compensation and talent management
Client focus is Mercer’s top priority: We are committed to long-term client relationships and to helping our clients achieve success in an increasingly competitive global marketplace. As such, Mercer’s strategic direction is driven by the imperative to provide solutions that will address the complex business challenges our clients face. Invariably, our clients’ issues and challenges originate at the strategic level. They are fundamental to business success for organizations in all parts of the world and in all business sectors.