HR outsourcing
An overview of HR outsourcing, its use within organisations and its alternatives
An overview of HR outsourcing, its use within organisations and its alternatives
Outsourcing any activity to an external provider can offer benefits, such as increased efficiency and access to expertise. But it can also present challenges, such as loss of in-house knowledge and processes, and fragmentation of the service provided. Payroll is the most commonly outsourced HR activity, followed by providing advice on specialist topics.
This factsheet introduces HR outsourcing and its use by organisations, outlining some of the alternatives, such as shared services, employee self-service, and buying-in consultancy services. It highlights the need to consider the business case for outsourcing HR work and the questions to ask in deciding whether outsourcing is the appropriate solution. Finally, the factsheet offers guidance on selecting a provider and sets out what to consider when managing the move from in-house to a third-party service.
Affiliate membership offers instant access to CIPD resources without the need for assessments or study, or explore your options to become a professional member of the CIPD to demonstrate your commitment to the world of work.
Already a member? Login here.
Listen to episodes of HR People Pod, the CIPD’s fortnightly podcast providing expert insights from HR leaders discussing the topical issues impacting the world of work.
Listen nowUnderstand how strategic HRM works, and its relationship with business strategy, human capital management and business performance
We examine research evidence to understand if and how HR practices influences organisational performance and key workplace outcomes
Understand what we mean by skills in the workplace, UK skill levels and the government’s skills policy.
Learn how to identify the signs of stress and address stress at work
Outlines the kind of occupational health services an organisation might offer and the role of confidentiality and consent in discussing an employee’s health