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    Outsourcing HR?

    It's no secret that companies everywhere have been outsourcing to save money. But what of human resources functions? Would you outsource those, and what would be your main reasons?

    According to a survey conducted by the Instutite for Corporate Productivity, the top two reasons for companies outsourcing their human resources functions was to cut costs and to standardize processes to make things easier. In contrast, for high-performance companies these are not top reasons. Instead, they choose to outsource solutions that would improve productivity, above all else.

    Sixty-two percent of high-performance companies choose this reason to a very high extent, compared to only forty-seven percent of lower-performing companies. Fifty-eight percent outsource to achieve a better return on investment, compared to only thirty-four percent of lower-performing companies.

    Do share your thoughts with us on outsourcing human resources functions.

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    comment 1 Comment
    • Cheryl Fournier
      07-21-2010
      Cheryl Fournier
      Outsource with care! Every touch point with employees provides valuable insight into the mindset of staff, eroding culture, and leadership competencies. Outsourcing technical HR positions is a good business, provided there is a strong project manager within the company who understands the corporate strategy and the challenges for achieving the strategy.

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