Fact: Human Resources certainly isn’t immune from the pressure to contain costs.
We’re not just talking about headcount or salaries, either.
HR administration is an area where many of your peers are looking to scale back – and some are turning to outsourcing some or all of their processes to do it.
So how to ensure you get the payoff you’re after from this move?
The folks at Hewitt Associates have some ideas.
Hewitt recently surveyed some of your peers who have started entrusting HR to a third party.
When it comes to the sign of a successful program, check out what percentage of your peers are using what measurements:
- better service quality (81%)
- more operational efficiencies (79%)
- lower operating costs (70%)
- greater employee satisfaction (65%), and
- HR staff realignment or reduction (48%).
Of course, you may have to be prepared to fight for that payoff. There are some barriers to success, notes Hewitt.
Assuming companies have the budget for it, the No. 1 obstacle to outsourcing even part of HR is the perceived loss of control over key processes.
That’s something you’ll want to address from the start.
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Tags: cost control, HR, Human Resources, outsourcing
August 10th, 2009 at 12:53 pm
There still is a lot of day to day work that can’t be done off site.
August 11th, 2009 at 4:59 pm
True, but there is no reason to waste your time doing the majority of the administration and compliance work that CAN be done off site. For example, how much does it add to the bottom line to do your own payroll or workers’ comp administration. Assuming you have a good provider, there can absolutely be a time and liability savings there.