HR housekeeping desperately needed, finds survey
05/11/2007 09:35:00
HR Directors question the value of outsourcing,
preferring to manage processes in-house, yet struggle to achieve acceptable
delivery standards in core functions
A survey of 168 HR Directors has revealed many are struggling to achieve
adequate standards of delivery in core HR functions such as diversity,
retention, training and staff motivation, yet at the same time, question the
value of recruitment outsourcing and prefer to keep core processes in-house.
The survey, carried out by recruitment process outsourcing specialist hy-phen
at the recent CIPD annual conference in Harrogate, explored current attitudes
towards outsourcing the recruitment process, as well as investigating how
effectively HR Directors felt their departments supported organisational
goals, with some startling findings.
HR departments struggling to deliver many core HR functions that support the
business...
Age Diversity Difficulties
· Nearly one fifth (18%) of HR Directors still receive requests for
candidates of a particular age from line managers
· Only 48% and 50% respectively felt they were achieving high standards of
delivery in age/gender diversity and regulatory compliance
· Only half (55%) had a grip on their diversity status, with 45% feeling they
wouldn't be able to provide accurate figures if an audit were carried out
within a week
Managers Causing Migraines
When asked how long it typically took to fill a management role, half (50%)
take more than three months to fill, while nearly 10% take more than five
months
Introspective on Staff Retention
When quizzed about their views on the importance of external providers, 2 in 5
HR Directors (42%) felt external training providers were either not important
or had no view ('neutral')
Peripheral People Process
18% of HR Directors felt they weren't close enough to their organisation's
core business to help achieve its strategic goals
Par for the Course
In no single category did two-thirds of respondents feel a high standard was
being delivered in core HR functions such as employee motivation, workforce
planning, talent management and flexible working
Knowledge is Power
When asked if they could provide accurate information on key areas if an audit
was conducted of their department next week, many showed lack of access to
organisational knowledge. Only in 'Staff Turnover' did more than 80% of HR
Directors have immediate access to management statistics. Again staff
retention and time taken to fill vacancies prove to be a pain point, with
'Time taken to fill vacancies' (51%) scoring the lowest
...Yet doubt the need for third parties to provide consultancy and critical
resource...
Risky Business
· When asked what effect on risk they felt represents, More than half (56%)
of respondents feel outsourcing of HR functions to an external third party
increases organisational risk, and many (20%) question whether it has any
impact on risk at all
· Similarly, when asked what value outsourcing HR functions to an external
third party would offer, only half (51%) feel it adds value, while the
remaining half (49%) feel it either erodes value, or has absolutely no effect
In-House Choke Hold
Arguably the least strategic HR function of the options provided (payroll) was
the only one fully outsourced by a significant proportion (20%). The next
highest fully outsourced process was strategic consultancy at a mere 8%
All but one function (training and development - 34%) were in 40 percentiles
for being kept fully in-house. Other options provided were Remuneration &
Benefits, Recruitment Assessment & Selection, Strategic Consultancy and
Research
Neil Jones, Managing Director, hy-phen, commented: "Whilst it's
understandable that HR Directors may perceive recruitment outsourcing as
relinquishing control of critical processes, these findings illustrate many
desperately need support.
Recruitment Process Outsourcing can not only manage the back-end, high-volume
processes such as payroll, but also the more strategic elements of HR, such as
talent management and resource planning. HR directors have to shoulder a huge
amount of responsibility and must retain the highest possible standards, and
outsourcing can help them do that, freeing up their time to focus on more
effectively supporting the business."
Source: onrec.com
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