CIPD 2009 survey on HR Outsourcing

The CIPD 2009 survey on HR Outsourcing has recently been completed and reports data on the current state of HR outsourcing.  The top drivers reported for HR outsourcing are consistent with the reasoning behind some of our clients’ decision to outsource.  It includes access to skills and knowledge (71%), quality (64%), and cost reduction (61%). 

Outsourcing HR functions allows parameters and metrics to be put in place which in the past may have been ignored.  Once organisations set clear objectives and targets within their HR function they are more likely to then achieve them.  At Grafton ESP we set KPI’s with our Service Level Agreements allowing organisations to measure quality of the service provided by the Grafton ESP’s team and to set expectations on both sides.  The following are some sample KPI’s:

KPI Benefit of measuring
Cost per hire Cost savings.
Time to fill Reduced gaps of vacant posts and costs associated with those gaps.
Hiring Manager Satisfaction  Ensures the service is satisfactory for internal clients.
Interview: Placement ratio Ensures the quality of candidates being presented to the hiring managers.  Reduces hiring managers’ time to assess.
Diversity Addresses issues of hiring diversity needs.
Quality of Hire Higher caliber of candidate. Greater output.
Agency usage Ensures the cost per hire is kept to a certain level. Cost savings.
Sourcing Mix Increase the number of direct applicants. Cost savings.
Offer acceptance Ratio Increase in the offer acceptance ratio. Reduce gap.

To read the entire CIPD HR Outsourcing report go to
http://www.cipd.co.uk/subjects/corpstrtgy/general/_HR_outsourcing_survey.htm?IsSrchRes=1