hr department benchmarks and analysis 2015–2016

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HR DEPARTMENT
BENCHMARKS
AND ANALYSIS
2015–2016
HR Department Benchmarks
and Analysis 2015-2016
A
HR Department Benchmarks and Analysis 2015-2016
ISBN 978-1-63359-087-8
ISSN 1540-2711
‘‘This publication is designed to provide accurate and authoritative information in regard to the
subject matter covered. It is sold with the understanding that the publisher is not engaged in
rendering legal, accounting or other professional service. If legal advice or other expert assistance
is required, the services of a competent professional person should be sought.’’ − From a
Declaration of Principles, jointly adopted by a Committee of the American Bar Association and a
Committee of Publishers and Associations.
For inquiries about purchasing multiple copies of this report, please
contact:
Gail Moorstein, Editorial Director
(gmoorstein@bna.com)
姝 2015 The Bureau of National Affairs, Inc. • Arlington, Virginia
s
Table of Contents
Acknowledgements ..............................................................................................
x
About the Authors ...............................................................................................
xi
Executive Summary .............................................................................................
xii
Introduction and Guide to Using This Report
Overview .............................................................................................................
3
Frequently Used Terms .........................................................................................
5
Design, Methodology and Presentation .................................................................
7
Profile of Participating Employers ........................................................................
9
Chapter 1—HR Department Staffing
Overview .............................................................................................................
13
Highlights ............................................................................................................
14
Recent Increases and Cuts in HR Staff .................................................................
16
How It’s Measured: The HR Staff Ratio ................................................................
19
Human Resource Department Staff Ratios ...........................................................
21
How It’s Presented: HR Staff Ratios in Charts and Tables .....................................
27
HR Staff Ratios: 1995-2015 .................................................................................
36
Composition of the HR Department Staff ..............................................................
39
Specialists on the HR Department Staff ...............................................................
42
Contingent Workers and Human Resources ..........................................................
46
Chapter 2—HR Department Expenditures and Budgets
Overview .............................................................................................................
51
Highlights ............................................................................................................
52
How It’s Measured: HR Expenditures and Budgets ................................................
54
How It’s Presented: HR Expenses per Capita in Charts and Tables.........................
56
姝 2015 The Bureau of National Affairs, Inc. • Arlington, Virginia
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HR Department Benchmarks and Analysis 2015-2016
Budgeted Changes in HR Expenditures .................................................................
57
HR Expenditures per Employee .............................................................................
61
How It’s Measured: HR Budgets as a Percentage of Operating Costs.....................
71
HR Budgets and Total Operating Costs .................................................................
72
Benchmarking HR Expenditures: Factors to Consider ............................................
80
Budgeted Changes in HR Staff Salaries ................................................................
81
How It’s Measured: HR Salaries as a Percentage of Payroll (HR Salary Ratio).........
83
HR Salaries and Total Payroll Costs ......................................................................
84
Chapter 3—Metrics, Strategy and Planning
Overview .............................................................................................................
89
Highlights ............................................................................................................
90
Metrics and Strategic Planning in HR ...................................................................
92
HR Execs Cite Wide Array of Barriers to Metrics.................................................... 100
Current HR Department Priorities ......................................................................... 102
As Hiring Ramps Up, Workforce Issues Come to the Fore ...................................... 106
Anticipated Changes in HR’s Priorities ................................................................. 108
HR’s Strategic Involvement and Influence ............................................................. 111
What Are the Characteristics of a Full Strategic Partner?....................................... 115
Where and How Should HR’s Profile Be Raised? ................................................... 117
Chapter 4—HR Activities and Responsibilities
Overview ............................................................................................................. 121
Highlights ............................................................................................................ 122
Changes in HR Department Responsibilities ......................................................... 124
Employment and Recruiting ................................................................................. 126
Strategic Planning ............................................................................................... 130
Training and Development .................................................................................... 133
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姝 2015 The Bureau of National Affairs, Inc. • Arlington, Virginia
Compensation ...................................................................................................... 136
Benefits .............................................................................................................. 140
Employee Services .............................................................................................. 144
Employee Relations ............................................................................................. 147
External Relations ............................................................................................... 150
HR Records and Systems ..................................................................................... 152
Health and Safety ................................................................................................ 154
Evolution of HR Responsibilities and Autonomy: 1995-2015 .................................. 157
Chapter 5—HR Outsourcing
Overview ............................................................................................................. 163
Highlights ............................................................................................................ 164
Extent of Outsourcing in Human Resources .......................................................... 165
The Outsourcing Decision .................................................................................... 173
Outsourcing Outcomes ......................................................................................... 177
Outsourcing Prospects on the Horizon .................................................................. 180
Offshoring Likely on the Rise, Deloitte Survey Finds .............................................. 181
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HR Department Benchmarks and Analysis 2015-2016
s
List of Figures
Chapter 1—HR Department Staffing
Figure 1-1—Changes in HR Staff Levels, 2014-2015 .........................................
16
Figure 1-2—Changes in Staff Levels: 2005-2015 ..............................................
17
Figure 1-3—HR Staff Ratios: 1995-2015 ..........................................................
21
Figure 1-4—Change in Employee Headcount, 2014 to 2015 ..............................
23
Figure 1-5—Change in HR Staff Level (in FTEs), 2014 to 2015 .........................
24
Figure 1-6—Change in HR Staff Ratio (HR Staff per 100 Employees),
2014 to 2015 ...............................................................................................
25
Figure 1-7—HR Staff Ratios by Workforce Size, 2015 .......................................
28
Figure 1-8—HR Staff Ratios by Industry, 2015 .................................................
31
Figure 1-9—Median HR Staff Ratio, 2014 vs. 2015, by Workforce Size .............
33
Figure 1-10—Median HR Staff Ratio, 2014 vs. 2015, by Major Industry
Classification ................................................................................................
34
Figure 1-11—HR Staff Ratios by Workforce Size: 1995-2015 ............................
37
Figure 1-12—HR Staff Ratios by Major Industry Classification: 19952015 ............................................................................................................
38
Figure 1-13—‘‘Typical’’ Composition of HR Department Staff,
2005 vs. 2015..............................................................................................
39
Figure 1-14—HR Staff Composition in 2015, by Workforce Size ........................
40
Figure 1-15—Prevalence of HR Specialists by Workforce Size,
2015 vs. 2005..............................................................................................
42
Figure 1-16—Prevalence of Specific HR Specialists, 2015 vs. 2005 ..................
44
Figure 1-17—HR’s Role in Hiring Contingent Workers .......................................
46
Figure 1-18—Median HR Staff Ratios by HR’s Role in Hiring Contingent
Workers ........................................................................................................
47
Chapter 2—HR Department Expenditures and Budgets
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Figure 2-1—Median Budgeted Change in Total HR Expenditures:
1995-2015 ...................................................................................................
57
Figure 2-2—Budgeted Change in Total HR Expenditures, 2014 vs. 2015 ...........
58
Figure 2-3—Budgeted Change in Total HR Expenditures: 2010-2015 .................
59
姝 2015 The Bureau of National Affairs, Inc. • Arlington, Virginia
Figure 2-4—Median Budgeted HR Expenditure per Employee:
1995-2015 ...................................................................................................
61
Figure 2-5—Per Capita HR Expenditures Budgeted for 2015,
by Workforce Size .........................................................................................
63
Figure 2-6—Per Capita HR Expenditures Budgeted for 2015,
by Industry ...................................................................................................
66
Figure 2-7—Median Budgeted HR Expenditures per Employee,
2005 vs. 2015, by Workforce Size .................................................................
68
Figure 2-8—Median Budgeted HR Expenditures per Employee, 2005 vs.
2015, by Major Industry Classification ..........................................................
70
Figure 2-9—HR Budget as a Percentage of Total Operating Costs:
1995-2015 ...................................................................................................
72
Figure 2-10—HR Budget for 2015 as a Percentage of Total Operating
Costs, by Workforce Size...............................................................................
73
Figure 2-11—HR Budget for 2015 as a Percentage of Total Operating
Costs, by Industry.........................................................................................
76
Figure 2-12—HR Budget as a Percentage of Operating Costs,
2005 vs. 2015, by Workforce Size .................................................................
78
Figure 2–13—HR Budget as a Percentage of Operating Costs,
2005 vs. 2015, by Major Industry Classification ............................................
78
Figure 2-14—Median Budgeted Change in HR Staff Salaries:
2005-2015 ...................................................................................................
81
Figure 2-15—HR Salary Ratio versus HR Staff Ratio: 2005-2015 ......................
84
Figure 2-16—HR Staff Salaries for 2015 as a Percentage of Total
Payroll, by Workforce Size .............................................................................
85
Figure 2-17—HR Staff Salaries for 2015 as a Percentage of Total
Payroll, by Industry .......................................................................................
86
Chapter 3—Metrics, Strategy and Planning
Figure 3-1—Extent of Metrics and Planning in HR, 2015 ...................................
93
Figure 3-2—Regular Use of Metrics and Planning in HR, 2015 vs. 2005 ............
95
Figure 3-3—Use of HR Metrics and Planning, by Workforce Size ........................
97
Figure 3-4—Extent of Metrics and Planning in HR, 2005 vs. 2015 ....................
98
Figure 3-5—Extent of Metrics and Planning in HR, by Workforce Size ................
99
Figure 3-6—Current HR Department Priorities .................................................. 103
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HR Department Benchmarks and Analysis 2015-2016
Figure 3-7—Current HR Department Priorities, by Workforce Size ..................... 105
Figure 3-8—Major Change in HR Department Priorities or Initiatives? ............... 108
Figure 3-9—Areas of Anticipated Change in HR Department Priorities ............... 109
Figure 3-10—Reporting Relationships of HR Executives, 2015 .......................... 111
Figure 3-11—HR’s Strategic Involvement within Organization, 2005 vs.
2015 ............................................................................................................ 112
Figure 3-12—HR’s Strategic Involvement by Reporting Relationship ................. 113
Figure 3-13—HR’s Strategic Involvement by Number of Regular
Measurement and Planning Activities ............................................................ 114
Chapter 4—HR Activities and Responsibilities
Figure 4-1—Recent Changes in HR Department Responsibilities ....................... 124
Figure 4-2—Changes in HR Responsibilities: 2005-2015 ................................... 125
Figure 4-3—Employment and Recruiting - Who Handles It? ............................... 127
Figure 4-4—Employment and Recruiting by Workforce Size .............................. 128
Figure 4-5—Strategic Planning - Who Handles It? ............................................. 130
Figure 4-6—Strategic Planning by Workforce Size ............................................ 131
Figure 4-7—Training and Development - Who Handles It? .................................. 133
Figure 4-8—Training and Development by Workforce Size .................................. 135
Figure 4-9—Compensation - Who Handles It? ................................................... 137
Figure 4-10—Compensation by Workforce Size ................................................. 139
Figure 4-11—Benefits - Who Handles It? .......................................................... 140
Figure 4-12—Benefits by Workforce Size .......................................................... 143
Figure 4-13—Employee Services - Who Handles It? .......................................... 144
Figure 4-14—Employee Services by Workforce Size .......................................... 146
Figure 4-15—Employee Relations - Who Handles It? ......................................... 147
Figure 4-16—Employee Relations by Workforce Size ......................................... 149
Figure 4-17—External Relations - Who Handles It? ........................................... 150
Figure 4-18—External Relations by Workforce Size ........................................... 151
Figure 4-19—HR Records and Systems - Who Handles It? ................................. 152
Figure 4-20—HR Records and Systems by Workforce Size ................................ 153
Figure 4-21—Health and Safety - Who Handles It? ............................................ 154
Figure 4-22—Health and Safety by Workforce Size ............................................ 156
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姝 2015 The Bureau of National Affairs, Inc. • Arlington, Virginia
Figure 4-23—Exclusive HR Department Responsibility for Selected
Activities and Programs, 1995 vs. 2015 ........................................................ 158
Chapter 5—HR Outsourcing
Figure 5-1—Prevalence of HR Outsourcing: 1997-2015 ..................................... 165
Figure 5-2—HR Outsourcing in 2015, by Workforce Size ................................... 166
Figure 5-3—HR Outsourcing in 2015, by Industry ............................................. 167
Figure 5-4—Most Frequently Outsourced HR Activities ..................................... 169
Figure 5-5—Outsourcing of Specific HR Activities, by Workforce Size ................ 170
Figure 5-6—Activity or Program Most Recently Outsourced by HR .................... 171
Figure 5-7—Who Initiated the Outsourcing Decision? ........................................ 173
Figure 5-8—Importance of Various Factors in the Decision to Outsource ........... 174
Figure 5-9—Top Factors in Choice of Outsourcing Provider ................................ 175
Figure 5-10—Did the Outsourcing Initiative Coincide with HR Staff
Cuts? ........................................................................................................... 177
Figure 5-11—Does HR Oversee the Relationship with the Vendor? ..................... 178
Figure 5-12—Outsourcing Results in Key Areas ................................................ 179
Figure 5-13—Any HR Function(s) to be Outsourced Within Next 12
Months? ....................................................................................................... 180
Figure 5-14—Outsourced HR Activity Ever Brought Back in House? .................. 182
Figure 5-15—Why Doesn’t the HR Department Outsource? ............................... 183
姝 2015 The Bureau of National Affairs, Inc. • Arlington, Virginia
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HR Department Benchmarks and Analysis 2015-2016
s
Acknowledgements
We wish to extend our heartfelt thanks to the many human resource professionals
who participated in this year’s HR Department Benchmarks and Analysis survey.
This report would not have been possible without their willingness to complete the
extensive survey questionnaire, despite their considerable professional duties and
obligations. We are most grateful for their participation.
As always, we are deeply indebted to Fonda Jarrett and Mike Wright of
Bloomberg BNA for their diligent, conscientious and professional work in
designing, laying out and publishing the report.
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姝 2015 The Bureau of National Affairs, Inc. • Arlington, Virginia
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About the Authors
The following individuals contributed to the research and questionnaire design,
data collection and tabulation, analysis and interpretation of survey findings,
writing, copy editing and organization of this report.
Gail C. Moorstein
Editorial Director
Andrew J. Hellwege
Survey Research Analyst
Cordelia D. Gaffney
Manager, Bloomberg BNA Graphics
Susan J. Sala
Consulting Editor
J. Michael Reidy
Consulting Editor
姝 2015 The Bureau of National Affairs, Inc. • Arlington, Virginia
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HR Department Benchmarks and Analysis 2015-2016
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Executive Summary
For nearly four decades, Bloomberg BNA has published its annual report on the
state of the human resources function, HR Department Benchmarks and
Analysis. Since the survey’s inception in 1978, the questionnaire and report have
undergone continual revision, refinement and expansion, ensuring that each report
is as comprehensive, timely and enlightening as possible. As a result, the annual
survey-based report has remained an authoritative, trusted source of research,
analysis and perspective on human resource department staffing, expenditures,
responsibilities, priorities and influence.
In keeping with that tradition of continuous evaluation and improvement, this
year’s report incorporates several noteworthy enhancements. HR Department
Benchmarks and Analysis 2015-2016 contains new and expanded historical
analysis and perspective, including examinations of HR department
responsibilities and autonomy over the past two decades, the tenacity of
demographic patterns in HR staff ratios and key factors in the recent decline in
human resources staffing relative to the employee population. As always, charts
and tables have been added, updated and refined. This year’s ‘‘perspective’’ pieces
convey HR executives’ views and experiences on a variety of topics, including
impediments to the use of metrics and benchmarks in human resources; growing
emphasis on recruitment, hiring and retention among HR departments; and the
strategic position and influence of human resource officers and departments.
HR Department Benchmarks and Analysis 2015-2016 is based on responses from
348 human resource executives and professionals representing a broad cross
section of U.S. employers. (See ‘‘Profile of Participating Employers’’ on page 9 for
more details on the enterprises and institutions represented.) Most respondents
are at or near the top of the HR profession, heading up the human resources
function at their organization, division or facility.
Key findings of this year’s survey report, organized by major topic, are
summarized below.
HR Department Staffing
After reaching all-time highs in 2013 and 2014, human resources staffing
relative to the workforce tumbled a bit in 2015. This year’s median ratio of
human resources staff to total employee headcount is 1.1 full-time equivalent staff
members for every 100 employees served by the department, down from 1.3 HR
staff per 100 employees in both 2013 and 2014.
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Workforce growth triggered the decline in HR staff ratios over the past year.
Just 12 percent of responding HR departments suffered some loss in full-time
equivalent staff during the past year, while 24 percent of HR offices added
positions between 2014 and 2015. Over the same time span, total headcount
increased at nearly two out of three organizations (65 percent), with just 12
percent of employers reporting reductions-in-force. (The HR staff ratio declines if
the size of the workforce increases, unless there is an equivalent or greater
proportional increase in HR staff.)
Despite the dip in HR staff ratios this year, survey findings over the past
decade indicate an upward shift in human resource staff levels relative to
employment. This year’s median HR staff ratio for all responding employers is
down from the record highs of 2013 and 2014 but still clearly at the high end of
midpoint ratios recorded since the survey’s inception in 1978. Moreover, the
median ratio last fell below one HR staff member for every 100 workers in 2002,
and the midpoint figure has come in at 1.1 per 100 or higher in nine of the last 11
years.
The impact of economies of scale on HR department staffing remains
substantial and consistent. Staff ratios decline steadily and predictably as the
employee population rises, this year from a median of 1.6 human resource staff
members for every 100 workers in the smallest organizations (fewer than 250
workers) to well under half that figure (0.6 per 100) among the largest responding
establishments (2,500 or more employees).
The composition of the HR staff remains highly dependent on the size of the
workforce served by the department. Managers predominate in departments
serving the smallest companies (fewer than 250 workers), but the makeup of the
HR staff shifts quickly as workforce size increases. Supervisors and managers
typically make up well over half of the HR department staff in the smallest
companies, compared with about one-third of human resource contingents in the
largest organizations (2,500 or more employees). Overall, managers and
supervisors constitute an average of 41 percent of the HR departments
responding for 2015, followed closely by HR’s professional and technical
contingent (an average of 37 percent). Secretaries and administrative assistants
usually make up a considerably smaller portion of the human resources staff (21
percent).
HR Expenditures and Budgets
Recent adjustments to HR’s annual appropriations represent substantial
improvement from 2009-2011, when the median change in the HR department
姝 2015 The Bureau of National Affairs, Inc. • Arlington, Virginia
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HR Department Benchmarks and Analysis 2015-2016
budget plunged to roughly 2 percent per year. However, recent HR budget
modifications (2012-2015) have been well short of levels observed in the decade
before the Great Recession, when the median year-to-year change in the human
resources budget routinely exceeded 5 percent, peaking at more than 7 percent in
both 2006 and 2007.
In each of the last four years (2012-2015), the median annual adjustment to
HR’s funding has been an increase of about 4 percent. For 2015, the median
budgeted change in HR’s appropriations—the percentage difference between
actual expenditures in 2014 and budgeted outlays for 2015—is a boost of 4.2
percent, little changed from the midpoint figures for 2014 (+3.9 percent), 2013
(+3.8 percent) and 2012 (+3.6 percent).
While roughly three-quarters of the surveyed HR offices have budgeted
greater outlays for this year than they spent in 2014, those funds are being
stretched thinner by workforce expansion. Overall, budgeted HR expenditures
per employee for 2015 are down modestly from a year earlier, as overall
employment growth at responding firms has outstripped the pace of funding
increases for human resources. The median budgeted per capita expenditure for
human resource activities in 2015 is $1,375 per employee, down about 6 percent
from the median outlay budgeted for 2014 ($1,465 per worker).
HR’s per capita expenditures in hospitals, schools and other nonbusiness
establishments continue to fall well short of annual outlays per worker in
the business sectors, and that disparity has only widened over the last 10
years. HR funding growth in the nonbusiness sectors has slightly exceeded
inflation over the course of the last decade, while growth in per capita
expenditures among manufacturing companies and nonmanufacturing enterprises
has been more than double the national inflation rate since 2005, according to the
survey findings.
On the whole, HR departments have gained a larger overall share of their
organizations’ financial resources over the last decade. Human resources
funding for 2015 constitutes a median of 1.4 percent of the surveyed employers’
budgeted operating expenses for the year, the largest median proportion of total
operating costs represented by HR budgets in the survey’s history (also reached
in 2013). The median HR share has been at least 1.1 percent of budgeted
operating costs in 10 of the last 11 years. From 1997 to 2004, human resources
routinely received less than 1 percent of total operating expenditures budgeted by
their organizations.
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HR Metrics, Strategic Planning and Priorities
Compensation and benefits still sit atop the analytical heap in human
resources. Pay and benefits programs are subject to some degree of quantitative
analysis and/or strategic planning at nearly nine in 10 responding organizations
(89 percent), including 59 percent that conduct regular examinations of their
wage, salary and benefits systems.
Since 2005, measurement and planning have grown more prominent in some
areas of human resources, languished in others and ebbed in a few. The
greatest analytical inroads have been made in recruitment and selection, where
nearly half of HR executives surveyed in 2015 (48 percent) reported routine use of
metrics or formal planning, compared with 36 percent of respondents in 2005.
Improvements in the economy apparently have spurred a modest reshuffling
of HR department priorities, with recruitment and retention topping
health-care cost control for a third consecutive year. The vast majority of HR
officers (85 percent) characterized ‘‘attracting and retaining qualified employees’’
as ‘‘extremely important’’ or ‘‘very important,’’ while about three out of four
surveyed executives (73 percent) put ‘‘controlling health benefits costs’’ among
their greatest priorities for 2015. (Four years ago, 86 percent of respondents
ranked health benefits cost control as a top concern.)
Human resource officers might not have a key to the executive washroom,
but they often report to someone who does. The head of human resources
answers directly to the organization’s president or CEO at a solid majority of the
surveyed establishments (54 percent). Reporting relationships continue to matter;
HR’s corporate influence is strongest when its leader answers directly to top
brass.
Only 25 percent of responding HR executives reported that human resources
has ‘‘full’’ involvement in corporate decision-making, the same percentage
indicating complete strategic integration a decade ago. Roughly four in 10 HR
officers (38 percent) reported ‘‘substantial’’ influence on corporate strategy, while
26 percent indicated ‘‘moderate’’ involvement in major business decisions. Few
respondents characterized their departments’ strategic involvement and influence
as ‘‘minimal’’ (7 percent) or nonexistent (2 percent).
HR Activities
The pace of change in human resources’ responsibilities has been slowing.
Less than three in 10 HR executives responding this year (29 percent) and last
(27 percent) reported some change in their offices’ duties or functions within the
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HR Department Benchmarks and Analysis 2015-2016
previous 12 months, compared with more than two-fifths of survey respondents a
decade earlier (42 percent in both 2005 and 2004) and roughly half of HR officers
responding in 2006 and 2007.
The HR department remains much more likely to acquire new
responsibilities than to have any tasks or programs removed from its duty
roster. About one in four HR departments surveyed in 2015 (23 percent) acquired
new functions within the past year, while less than one-tenth (9 percent)
relinquished one or more activities during the previous 12 months.
While HR has secured a seat at the corporate table at many, if not most,
organizations, its strategic role still tends to be collaborative or supportive.
Employers are largely disinclined to give the HR department exclusive control
over organization development (25 percent) or succession planning (11 percent),
and very few companies with merger and acquisition functions have assigned
those duties to human resources alone.
Employee benefits are HR’s bailiwick, usually without assistance or interference
from elsewhere in the organizations. The HR department manages all aspects of
insurance benefits, unemployment compensation and leave programs and policies
at more than seven in 10 surveyed organizations, and a strong majority of
companies entrust their cafeteria benefits, pension and retirement programs and
flexible spending accounts to human resources alone.
Outsourcing
Outsourcing of HR activities has fallen off somewhat from a decade ago, but
the use of outside contractors is in no danger of vanishing from the human
resources landscape. Roughly two-thirds of all employers responding in 2015 (65
percent) outsourced at least one HR activity at the time of the survey, little
changed from a year earlier (62 percent) but well short of the high water mark of
79 percent in 2005.
HR usually calls the shots on moving an activity or program to a third party.
Among human resource executives queried about their most recent outsourcing
initiatives, about two-thirds (64 percent) reported that HR made the decision to
farm out the program or function. Six percent reported that the company’s
president or CEO directed the switch, 6 percent said the chief financial officer
mandated the change and 5 percent indicated that the finance department made
the determination.
Contractor expertise and desired improvements in service quality most often
spark the decision to outsource. About three out of four surveyed HR
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executives indicated that access to greater expertise was an ‘‘extremely
important’’ (37 percent) or ‘‘very important’’ (39 percent) consideration in their
most recent outsourcing initiative, followed closely by expected gains in the
quality of service (33 percent and 39 percent, respectively). Less than two in five
respondents cited cost savings as an ‘‘extremely important’’ (14 percent) or ‘‘very
important’’ (24 percent) factor.
HR executives are generally satisfied but not often enamored with the
performance of contractors and vendors. Most respondents indicated that the
contractor had met expectations in key performance areas, while only a handful
deemed the vendor’s performance to be substantially better than anticipated. For
instance, 66 percent of the HR executives reported that their most recent
outsourcing initiative ‘‘met expectations’’ for improvements in service quality, with
only 11 percent reporting that the contractor’s performance ‘‘exceeded
expectations.’’
姝 2015 The Bureau of National Affairs, Inc. • Arlington, Virginia
xvii
About Bloomberg BNA
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