HR OUTSOURCING HEWITT SURVEY
US - Despite the poor economic climate, 71% of companies say they are not changing their HR outsourcing strategies.
After Hewitt Associates surveyed more than 100 mid to large-sized companies, more than half (55%) of companies say they face more cost pressures on benefits programmes compared to a year ago. But despite the poor economic climate, 34% say they are more inclined to outsource more compared to two years ago.
The survey also found that 62% of respondents for whom cost savings is a primary outsourcing objective said they met expected cost reduction targets through their existing outsourcing programme.
When asked about the reason for outsourcing, most respondents (78%) cited cost-savings as the biggest reason. Other reasons include gaining access to HR expertise (78%), service quality (74%). The ability to realign resources and focus on core business were also cited.
Some of the more commonly outsourced HR functions include outsourcing traditional benefit programmes (94%), health and welfare (61%), flexible spending accounts (94%) and dependent audit services (68%). Respondents also indicated that absence management and dependent audit administration topped the list of HR-related services companies plan to outsource in the near future.
According to Mike Wright, leader in Hewitt's HR outsourcing business, current economic conditions are creating a demand for outsourcing services as companies look for ways to reduce costs However, Wright adds that it is critical companies continually evaluate how well their current outsourcing initatives are working. "In doing so, they can uncover new ways to drive further improvements in their outsourcing programs, which often results in additional cost savings.”
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