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| HR Outsourcing |
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| Why Hr Outsourcing is
Booming |
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Why is human resource one
of the popular business processes to
outsource?
Unhappiness with the in-house department's
performance, according to a new survey of
150 US senior executives.
It found that nearly half of senior
executives are either dissatisfied with or
ambivalent about the performance of their HR
departments. Specifically 47 percent said
they were dissatisfied or neutral with the
overall performance of their HR departments,
while 53 percent said they were satisfied or
extremely satisfied.
The reason executives stated most often for
their dissatisfaction was response time,
while personal attention and access to
information were given as reasons for
satisfaction with their HR departments.
Whatever the case, HR functions most often
outsourced are administration (88 percent),
pension administration (57 percent),
recruitment (40 percent), training and
professional development (29 percent),
payroll (23 percent), health and safety (10
percent) and performance evaluation (1
percent).
What are the most popular reasons companies
gave for outsourcing HR? Lower costs (88
percent) and access to greater expertise (82
percent).
In addition, 66 percent of respondents said
they outsource to free up their HR
departments to focus on broader company
issues, 64 percent said they outsource to
gain access to more information, and 58
percent said they outsource to receive
quicker responses.
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| Outsourcing Philosophy |
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