An overview of HR outsourcing, its use within organisations and its alternatives
Outsourcing 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 fragmented HR services. 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. It outlines some of the alternatives to outsourcing, such as shared services, employee self-service, and buying-in consultancy services. It highlights the need to consider the business case, and the questions to ask, when deciding whether outsourcing is appropriate. Finally, the factsheet offers guidance on selecting a provider and 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 the principles of shared services, how they work, and the benefits they can bring to an organisation
Katie Stickland, CIPD Knowledge Exchange Manager, reviews research that examines how HR departments have utilised digital technology such as AI and analytics
Introduces employer brand, why it’s important, and how organisations can develop a strong brand aligned with their values
A look at the induction process, and the purpose of induction for employer and employee
Understand the principles of shared services, how they work, and the benefits they can bring to an organisation
Understand what succession planning involves, the link between succession planning and talent management programmes, and the role of people professionals in the process