Research from Ceridian shows a third of HR decision makers are ‘totally opposed' to any further outsourcing in their organisations. But when they do outsource, the survey shows HR professionals are not making the most of the economic benefits it can offer their organisation. Six out of 10 HR decision makers outsourced one process when outsourcing more could offer cost savings for their organisation.
The key drivers for outsourcing HR functions are buying in expertise not already in the business (40%) and cost (30%), but HR professionals value accuracy (71%) and reliability (68%) over cost (50%) when deciding which provider to outsource to.
David O'Connor, marketing and commercial services director at Ceridian, said: "Costs across businesses are being scrutinised and the HR department is no exception. It is no surprise outsourcing services are being considered and to some extent that this consideration is taking place outside the remit of HR.
"The importance of HR is not in question. It's simply that their time and skills are used to add the most comprehensive value to the business."
Most HR directors not involved in making HR outsourcing decisions
Only two out of 10 HR professionals think the HR director is the key decision maker in HR outsourcing decisions with over a third believing the responsibility lies with other senior management, including financial directors.
