Increased HR outsourcing allows function to play a more strategic role in business, says CIPD
David Woods, 23 June 2009
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Almost a third of employers are making use of HR outsourcing, allowing HR departments the opportunity to take a more strategic position in business, according to the CIPD.
Research from the CIPD and Leeds University Business School shows 29% of organisations currently outsource HR activities, with 20% reporting a big increase in the use of HR outsourcing over the past five years. This compares with 89% of organisations that have outsourced some parts of their business.
Nearly half (47%) said it has been a success in some areas but not others and 7% think it has been an ‘all-round success story'.
But only 11% of those that have outsourced some of their HR functions have taken advantage of the opportunity to play a strategic role to a great extent, with 54% becoming more strategic to a limited extent.
Vanessa Robinson, head of HR practice at the CIPD, said: "The rise in HR outsourcing offers a real opportunity for HR professionals to fulfil a more strategic role. With HR outsourcing certain to be a growing reality, the profession needs to ensure it has the skills, capabilities and self-belief to adopt a more strategic role."
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