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The rise and rise of HR BPO
HR Management talks to Advantec Chief Executive Pat Goepel about the rise of human resources BPO.

Advantec integrates, develops and supports human resources business solutions for companies nationwide. The firm’s adaptable tools and technologies – combined with their consolidated service providers and on-demand consulting services – enable clients to concentrate on top business priorities.

Appointed in 2005, Pat Goepel brings more than 15 years of leadership experience to Advantec. He is the former Executive Vice President of Ceridian, a leading HR managed business solutions organization serving more than 20,000+ Fortune 1000 clients, and has also held various positions with ADP, one of the largest providers of transaction processing and information based business solutions. He has an extensive background in the HRO industry, has been the recipient of many national awards and was recognized twice as an HRO Superstar by HRO Today.

HRM. When we think BPO, we think of large providers like ADP or IBM. How does a client benefit from looking at a smaller company?

PG. That is a great question. The biggest BPO providers are billion dollar companies; Advantec is a smaller company, which offers a potential client many advantages. First, we are nimble and technology efficient, so we can move more easily within an organization. Second, we can offer our clients big company experience in our leadership – something that not many smaller BPOs can boast. We offer clients big provider solutions, and yet we maintain the quality of a smaller, more personal relationship with our clients. All current and prospective Advantec clients are welcome to call my direct line with a question or concern – I doubt that they would find the CEO at a larger BPO as available. We have combined technology and service in a solution that is unmatched in the HR BRO industry, and we offer employees a great HR experience, which always leads to increased retention and increased profitability for our clients.

HRM. We are beginning to hear the term HR BPO more frequently. How do we define HR BPO and what changes do you see taking place in the HR BPO market?

PG. Human resources business process outsourcing, or HR BPO, is leveraging people, process and technology to deliver the end results of a business process. In the early stages of development, the initial HR BPO players moved quickly in creating reactive, custom models to service their clients and failed to create a one-to-many model. This resulted in a poor quality of service for clients, and it was difficult for providers to offer solutions that were both custom and cost-effective. At Advantec, we have created one system that can service all of our 700-plus clients. This system allows us to manage for efficiency and effectiveness and is affordable to operate. Our clients receive the solutions they need and enjoy the support of excellent customer service, at a price that reduces their overall costs.

Today, the most significant change that I see in the HR BPO space is that providers are better integrating the available technology to provide clients with solutions that add value to their business. As an industry, we are using content providers to enrich transactional HR solutions, which in turn improves the user experience and reduces frustration. Clients are driving these changes by expecting their provider to integrate strategies with transactions. At Advantec, we believe that strategy without execution is just hallucination. Moreover, execution without strategy is like hiking without a map! On behalf of our clients, we are integrating repeatable processes and consulting solutions to help them navigate a clear path to success.

HRM. Do you see changes in what drives a company to outsource and in what the next generation of clients will seek from their outsourcing provider?

PG. We are seeing clients who want their HR BPO supplier to mature beyond transaction-based processing and to move up the HR strategic value chain to provide consulting in many areas, including management development, HR strategies and policy. Clients value access to expertise and access to big company benefits. We have established the knowledge base to provide this expertise and have cultivated partner relationships that give clients of all sizes access to Fortune 500 quality healthcare and related benefits. We have focused on our service model (the Advantec Advantage) and have made significant changes internally to improve the quality of the employee experience. Clients also expect an integrated solution – they want a single provider that serves them in a multi-product or multi-process BPO model. As a result, we have created solutions around best-in-class providers and are able to provide this model at the right price for our clients.

HRM. Where do you think a company like Advantec can distinguish itself in the changing market?

PG. We have built our business on multi-process relationships to create the solution set small and mid-size companies require. Our HR BPO solutions reduce operational costs, relieve administrative burdens and mitigate compliance risks for our clients. Advantec began as a full-service PEO business model, powered by one database (PeopleSoft). Today, we can offer flexible solutions for clients as their needs change. We believe the company is uniquely positioned for success in the HR BPO market because our clients have allowed us to develop a consulting expertise in change management, risk, strategy and policy. This expertise complements our strong background in the transaction-based areas of payroll, benefits, tax filing, 401(K), COBRA, etc.

HRM. What should clients expect from their outsourcing provider in terms of communication and service?

PG. Our clients appreciate our consulting expertise and support. They also value accurate and timely responses to their questions and, of course, our cost-effective solutions.

HRM. How has Advantec changed to meet your clients’ expectations?

PG. We continually solicit feedback from our customers – through daily contact, quarterly satisfaction surveys and semi-annual Town Hall Meetings. Most recently, we modified our inbound contact center to provide clients with a single point of contact for enquiries – adding another layer of client support to our successful Human Capital Consultant group. Through these support groups, we offer our clients an unmatched depth of expertise in areas of labor law and risk management. Advantec also provides clients with extensive online resources for answers to HR-related questions. The Advantec Advantage makes a promise to our clients that when they call us with an enquiry, one individual person will serve as the contact from each stage of the process, until resolution.

As a multi-process HR BPO reliant upon partners to provide certain services, we recognize that whenever we can reduce the time it takes to complete a transaction (i.e. a pre-employment drug or background screening), we will increase the value of the service to our client. We constantly challenge ourselves on how to streamline and accelerate the process or technology and, ultimately, to improve the delivery to our clients.

HRM. What does Advantec offer potential clients?

PG. Advantec’s HR business process outsourcing solutions will reduce operational costs, improve efficiencies and mitigate compliance risks for their business. Our solutions allow our clients to focus on their business and their customers. By providing our clients with access to lower cost healthcare, great customer service and reduced compliance risks, we make it possible for them to create a positive environment for their employees. Satisfied employees are more loyal and productive, which enables our clients to retain their talent and increase their profitability. We give our clients the power to do more with their business.

HRM. How will industry consolidation affect clients?

PG. Properly executed, consolidation will always have a positive impact on the client – reduced costs and improved services. As a multi-process BPO provider, Advantec mitigates the impact of changes for our clients. Because we manage the change in a vendor relationship, our clients are insulated from the affects of consolidation.

HRM. What strengths does Advantec bring to the changing HR BPO market?

PG. The biggest strengths Advantec can bring to the HR BPO space are the core competencies we have built as a successful company, continually striving to improve the employee experience and manage the responsibilities of our clients. We also have the knowledge base to compete against a large consulting firm which may lack familiarity with HR. Advantec is in the perfect place to service clients because we have the experience of acting on behalf of the employer in HR-related matters, have developed essential multi-process partnerships and have already served as a true and trusted partner in our client relationships.

HRM. When is the right time to move to a BPO?

PG. There has never been a more perfect time than now. There is so much change in the HR industry: changes in legislation and in expectations of individual responsibility, new issues concerning privacy of data and improvements in available technology. The business model is changing at an increasing rate, creating more cost-effective solutions and improving available services. At Advantec, we are ready to provide you with a great BPO experience.