Outsourcing (when a company uses outside firms to handle work or projects) is on the rise.  Many companies outsource functions because:

• They maintain “lean” operations and may not possess the manpower to handle the work internally.
• They wish to reduce labor costs – hiring and training staff can be costly.
• They wish to dedicate their personnel to the activities where they are most needed.
• They wish to cut costs – outsourcing converts fixed costs into variable costs and releases capital for use in revenue-producing activities. 

Industry Statistics:

Are your HR programs and practices all that they need to be?

Did you know that:

• Organizations employing as few as two employees must comply with specific HR requirements or be subject to severe penalties.
• Approximately 25% of a middle manager’s day is actually spent “managing.”
• The percentage of workers who are satisfied with their jobs has declined to approximately 50%.
• Employee litigation has steadily increased (dramatically).
• There are 6 million threats of workplace violence each year.
• Employers lose nearly 80% of all negligent hiring suits.  An Appellate Court awarded $4 million to a woman who was raped by an employee. His employment application indicated no criminal convictions but the employer had not performed a reasonable search into the employee’s past before they hired him.
• The majority of companies are (at least partially) outsourcing a portion of their human resources functions.  This number is expected to increase dramatically.