Outsourcing

• Why Outsourcing
• Facilities Management
• Managed Services

Why Outsourcing

Looking for ways to potentially cut costs and unburden your shrinking Human Resources staff members? Do you have staff working until six and seven at night? Are you going home each day feeling as if you will never catch up? If so, join the crowd - or choose not to join. Outsource instead.

"The current economic climate is forcing organizations to explore tactics to remain competitive. Business process outsourcing of certain functions is an increasingly popular way to improve basic services while allowing HR professionals time to play a more strategic role in their organizations."

In a recent survey by the Society for Human Resource Management (SHRM), HR professionals were asked if they outsource any HR functions. Additionally, if they do outsource, they were asked what functions they outsource. HR professionals were asked to select all that apply.

Reasons for Outsourcing

• 26 percent – Save money
• 23 percent – Focus on strategy
• 22 percent – Improve compliance
• 18 percent – Improve accuracy
• 18 percent – Lack experience in house
• 18 percent – Take advantage of technological advances
• 17 percent – Offer services we otherwise could not
• 15 percent – Focus on core business
• 5 percent – Other
• 47 percent – Do not outsource

Functions Outsourced

• 84 percent - 401 (k) administration
• 84 percent – Employee assistance/counseling
• 74 percent – Retirement planning help
• 73 percent – Pension administration
• 72 percent – Temporary staffing
• 68 percent – Background checks
• 57 percent – Training and management development programs
• 54 percent – Executive development and coaching
• 53 percent – Health care benefits administration
• 49 percent – Employee benefit administration
• 49 percent – Payroll
• 46 percent – Risk management
• 44 percent – Executive staffing
• 41 percent – Employee relocation
• 40 percent – HRIS selection, training implementation
• 32 percent – Recruitment
• 17 percent – Executive compensation and incentive plans
• 15 percent – Policy writing
• 14 percent – Administration of compensation/incentive plans
• 11 percent - Wage and salary administration

Take a look at what other organizations are outsourcing. Outsourcing certain business processes might make sense for you, too. In any case, thinking about it just makes good business sense from a strategic perspective.