North American and European organizations, are leading the way in adopting significant outsourcing of strategic HR initiatives, taking a new approach. Australia’s mid-sized companies have had a cautious stance on the subject for a long time, believing that larger or multi-national organizations are the only ones who would benefit from strategic Human Resources outsourcing due to greater economies of scale.
This is gradually changing, yet Australia is behind the rest of the world in embracing the outsourcing of strategic development of HRM. All sized companies need to operate as effectively and efficiently as monolithic organizations, though often with fewer resources. The significance is shifting from just focusing on cost reduction to identifying and espousing a greater strategic Human Resources department to gain bottom line profitability.
The Australian market is poised to benefit from the client/vendor connection, evidenced by case studies from abroad. A survey conducted by a New York research company, The Conference Board, showed top ranking businesses are decisively entrenched in strategic Human Resources outsourcing.
The survey included 120 North American and European companies. It found that of the 120 companies, 76 percent outsource at least one major Human Resources function, and 80 percent indicated they would do so again. Not one of these firms said they had any intention to recover the outsourced functions and bring them back in-house. Nearly a quarter of the companies, 23 percent, planned to move from a multiple provider approach to a single provider strategy.
Providers of “end-to-end” strategies encompass the entire lifecycle of an employee, – from hiring employees, performance management strategies, and rewarding employee performance – while the rest focus on only a few of the tasks inherent to Human Resources such, as hiring employees and payroll management.
Strategic Human Resources outsourcing will play a major role in the Australian market, in the futre as the trend increases in popularity. Savvy companies in Australia are jumping on it now as a key differentiator to gain competitive edge. It is a major factor that will assist Australian businesses achieve the status of high performance companies.
To help companies to attain this focus, Strategic Human Resources outsourcing is taking on a new emphasis as a viable solution. Critically important to this effort are, performance management strategy in the organization, assuring capability of leadership, and engaging the workforce.
For general Human Resources information: http://www.corporatecanary.com.au/free-hr-reports. (free reports)