HR outsourcing has been costly and reduced quality, according to a survey of housing associations (HAs).

Over half of respondents said that contracting out HR operations had lead to an increase in costs and a decline in effectiveness. Although many respondents said they had restructured their HR operations in recent years, in part because of the economic downturn, 30% of respondents said they expected to recruit more.

The data also suggests that associations also employ more HR staff than other organisations, with the ratio to total employees being 1:57 compared to 1:108 elsewhere.

Results of the poll—conducted by consultants Essential Benchmarking & Reward Solutions—also suggested that women as well as ethnic minorities are underrepresented in senior roles in associations with women comprising 56% of the workforce but 44% of leadership teams, and ethnic minorities making up 13% of employees but 7% of top staff.

Average pay for HR Directors at associations was £72,825, whilst other HR staff earning £19,000.
Staff at 16 housing sector organisations completed the survey.