Measuring Outsourcing Success

Robust metrics are critical for demonstrating ROI and identifying improvement areas in outsourcing. Key performance indicators should include: 

• Cost savings – Track contracted versus actual vendor costs, reductions in HR administrative hours and any other key KPIs related to cost savings. Break out savings by benefits function to showcase outsourcing efficiency. 
• Service levels – Monitor service quality metrics like call center response times, enrollment cycle times, project deliverables and compliance deadlines met. 
• Employee satisfaction – Compare employee surveys pre- and post-outsourcing across factors like benefits communication, enrollment experience, understanding of programs, support accessibility and more. 
• HR team productivity – Conduct before and after comparisons of hours focused on strategic talent initiatives versus benefits administration. 
• Benefits program participation – Measure enrollment rates, usage of decision support tools, activity in voluntary benefits and other adoption metrics. 

Continuous tracking of these KPIs highlights successes, uncovers vendor issues and prompts actions to refine the outsourcing approach. Review results frequently with leadership and stakeholders.