Outsourcing HR can increase costs

Too many companies are outsourcing HR functions for the wrong reasons and these decisions are proving costly, according to a new study.

Research conducted by The Hackett Group showed the more an average company spent on outsourcing the greater total HR cost per employee.

It found the best firms spend 25 per cent less than their peers on HR and rely on 16 per cent fewer HR staff. Typical companies, the research revealed, make everyday errors, such as neglecting to streamline processes beforehand...

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