The Benefit of Outsourcing HR and Payroll in a Health Center: Mayo Clinic Healthcare Company

Paper Type:  Essay
Pages:  4
Wordcount:  1066 Words
Date:  2022-07-20


The Human Resource (HR) is a significant element in any particular organization. Following the continued internationalization of businesses, there is a necessity to outsource some of the HR functions to enhance the operational efficiency of the organization as it provides a chance to focus on the core comptenecies (Glaister, 2013). In this case, outsourcing refers to the process through which a company transfers the control and management of the HR activities to another company. Outsourcing the HR activities and the payroll can occur in various industries, but the paper focuses on the healthcare sector and in particular covers Mayo Clinic Health Center. Further, the paper outlines how companies can adopt outsourcing of the HR activities to provide a chance to concentrate on the core competencies.

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Mayo clinic operates as a non-profit organization offering healthcare services as well as acting as an academic medical center. The clinic is headquartered in Rochester, Minnesota in the United States. It was founded in 1889 by Charles Horace Mayo and Wiliam Worrall Mayo. Currently, the clinic holds up to sixty-three thousand employees who are chaired by Samuel DiPiazza while John H. Noseworthy is the Chief Executive Officer (CEO) ("About Mayo Clinic - About Us - Mayo Clinic", 2018). Mayo Clinic focuses on providing clinical practice, medical care, education, research, and further proving expert care to all people that require healing. The clinic operates globally with the facilities located in various states. Its mission is to stimulate hope to their patients as well as contribute to their health and wellbeing through the provision of quality health care services to the patients therein. It is achieved through activities such as education and medical research. Besides, the primary values of the clinic aim to prioritize the needs of the patients.

Although Mayo Clinic Healthcare Company majorly deals with providing health care services to its consumers, it also has the HR functions as well. The HR represents the human capital or the people who make the workforce in the company. Some of the HR activities include the development of the organizational policies, recruitment, and selection, determining the compensation package, administering the payroll, and laying off employees when the need arises. For instance, following the global operation of the clinic and the high number of employees across its facilities, it requires the implementation of an HR function to runs these activities. Some of the policies in the clinic rely on the HR function. For instance, Mayo clinic needs to develop policies that govern the operation of employees in the various stations. These policies may vary depending on the state as the labor laws are different in various countries. Mayo Clinic thus requires the HR function to devise employment policies that conform to the rules and regulations in each state they operate (Dieleman, Shaw & Zwanikken, 2011).

Recruitment and selection is also a common HR activity in the clinic. The healthcare center holds an estimate of 63, 000 employees who underwent a recruitment and selection process to secure an opportunity in the company. Furthermore, the HR function also sets the policies that govern the recruitment process in the entity. There is also an employee package that comprises a basic remuneration package and additional benefits as set by the HR function in the Clinic. This activity is dynamic as the company strives to meet the employee needs in the current turbulent environment. The recruitment process occurs regularly as the company launches new facilities in various states. The aspect of employee layoffs as an HR activity is also evident in the Clinic operations. Although it is not a common practice, Mayo Clinic Center announced its first layoff practice in Albert Lea.

Following the analysis of the HR activities, it is evident that outsourcing is essential as it allows Mayo Clinic Centre to focus on its core competencies such as achieving the strategic goals. The clinic is majorly committed to creating a service environment that provides adequate care to the patients while embracing the diversity that exists among employees in each level of management in the entity. Furthermore, the mission aims at prioritizing the needs of the patients with the aim of acquiring recognition form the employees, customers and the community as the global leader in enhancing diversity and inclusion in the workplace ("Mayo Clinic: Benefits", 2018). By outsourcing these activities, the company can find the opportunity to concentrate on other core values. For instance, the clinic outsourced its food service employment opportunities in St. Mary's Campus to Morrison Healthcare. This move would enhance the quality of its services since Morrison Healthcare is a leading multinational outsourcing company in Atlanta that provides quality services ("About Mayo Clinic - About Us - Mayo Clinic", 2018).

Besides, the clinic follows the guidance of their founders in devising a competitive compensation package. The belief provides that the best care for the patients relies upon the contribution of excellent, skilled, and intellectual workers and a good compensation model thus attracts these individuals. Through outsourcing, Mayo Clinic stands a chance to offer a competitive remuneration package that motivates the employees to support the achievement of the strategic goals and the mission. The clinic will not have to worry about developing employment policies since the outsourcing company takes control of all the activities. Outsourcing will also allow the company to continue providing a payroll program that is flexible by accommodating a regular increase in the employee salaries to meet a competitive edge in the market ("Mayo Clinic: Benefits", 2018).


Therefore it is recommendable that the company adopts to outsource its HR activities as a way to enhance the achievement of the core strategic goals (Glaister, 2013). Since the entity majorly deals in practice, education and research on providing quality healthcare services, it is essential to transfer the control of HR activities to another company. It allows the Clinic to dwell on developing the core competencies without worrying much of other activities in the entity. In the long-run, it leads to minimizing the operating costs while maximizing the benefits.


About Mayo Clinic - About Us - Mayo Clinic. (2018). Retrieved from

Dieleman, M., Shaw, D., & Zwanikken, P. (2011). Improving the implementation of health workforce policies through governance: a review of case studies. Human Resources For Health, 9(1). doi: 10.1186/1478-4491-9-10

Glaister, A. (2013). HR outsourcing: the impact on HR role, competency development and relationships. Human Resource Management Journal, 24(2), 211-226. doi: 10.1111/1748-8583.12031

Mayo Clinic: Benefits. (2018). Retrieved from

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The Benefit of Outsourcing HR and Payroll in a Health Center: Mayo Clinic Healthcare Company. (2022, Jul 20). Retrieved from

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