Society For Human Resource Management (SHRM) Certified Professional Practice Exam

What aspect of your HR work is not likely to be outsourced?

1. Resource planning

2. Payroll review

3. Unemployment insurance

4. Works compensation claims

The correct answer is: Works compensation claims

The correct answer highlights that workers' compensation claims are generally not likely to be outsourced due to the complexity and sensitive nature of the claims process. These claims require a deep understanding of specific regulations, as well as the nuances of each case. HR professionals typically manage these internally to ensure compliance with state laws and to maintain a better grasp of their workforce's safety and wellbeing. Handling workers' compensation claims internally allows HR to follow up closely with employees, manage the relationship with medical providers, and ensure that workplace safety protocols are being followed. This direct management also aids in reducing potential legal liabilities and fosters a supportive environment within the organization. In contrast, aspects like payroll review and unemployment insurance can often be efficiently handled by third-party providers who specialize in those areas, leveraging their expertise and technology to manage processes and compliance. Resource planning can involve strategic decisions and forecasting that, while critical, may still allow for external consultancy, but it's essential for HR to maintain control over workers' compensation to safeguard employee interests and organizational integrity.