| Goodyear |
Goodyear is expected
to save $45 million over the course of its 10-year
Human Resources Outsourcing (HRO) contract, which
supports 63,000 employees.
|
| General
Motors |
An HRO is handling benefits administration
for 1.2 million General Motors employees, retirees,
and dependents. General Motors Europe also outsourced
human resources functions for personnel in 10 different
countries.
|
| Proctor & Gamble |
Proctor & Gamble outsourced
to improve HR services, reduce costs, and give executives
easier access to employee information through technology.
The 10-year deal covers 98,000 employees.
|
| City of Cleveland |
The City of Cleveland hired an
HRO to handle payroll, administrative human resources
functions, and tax filings for 9,500 employees.
|
| Office Depot |
Office Depot outsourced to provide
its 37,000 employees with “convenient and reliable
access” to human resources information.
|
| Circuit City |
Circuit City committed seven years
to an HRO in order to reduce operating costs and
offer high-quality human resources to its 38,000
employees.
|
| U.S. Office
of Personnel Management |
The U.S. Office of Personnel Management
selected an HRO to administer a Flexible Spending
Account Plan for 1.8 million federal employees.
|
| Prudential
Financial |
Prudential Financial’s 10-year
HRO deal was designed to make transactional HR functions
more efficient and cost-effective and in-house HR
efforts more strategic.
|
| Caribou Coffee |
Outsourcing allowed Caribou Coffee
to switch to paperless payroll – its 5,000
employees now receive pre-paid debit cards instead
of paychecks. Employees and managers can also access
HR, benefits, career, and personal information through
a Web-based Human Resources Information System (HRIS)
|
| Delta Air
Lines |
The United States’ second
largest airline expects to save 25% in HR and payroll
costs over the course of its seven-year HRO contract.
|
| Texas Health
and Human Services Commission (HHSC) |
The commission outsourced its
human resources as part of an effort to streamline
12 agencies into five. The HHSC’s outsourcing
contract was also expected to help the State of Texas
reduce its $10 million budget deficit.
|
| Best Buy |
Best Buy outsourced payroll, benefits
administration, and other administrative tasks to
allow its HR professionals to concentrate on improving
customer service.
|
| American
Express |
By outsourcing HR functions for
81,000 employees, American Express intended to shift
the human resources department’s focus to business
issues, strategy, and benefits design.
|
| America Online |
AOL outsourced payroll, benefits
administration, and other functions to give human
resources employees more time for strategic functions
for its 14,500 employees. The company’s ultimate
goal is to go paperless.
|
| British Petroleum
(BP) |
Since outsourcing, British Petroleum
(BP) has experienced more timely and accurate payroll
processing, quicker responses to employee benefit
questions, and standardized HR processes company-wide.
BP has also been able to reduce its HR staff by 65%.
|
| Sony |
The HRO serving Sony’s 11,000
employees has allowed the company to focus on its
core business, make its human resource services more
efficient, and reduce costs.
|
| Intel |
Quality has improved by 89%, and
employee satisfaction has jumped by 20% since Intel
outsourced its human resources services.
|
| Universal/Vivendi |
A 10-year HRO deal allowed Universal/Vivendi
to close an entire office, reducing
its payroll by about 99 employees. The HRO now handles payroll and
other HR functions for Universal’s 26,000 employees.
|
| Home Depot |
Home Depot has been outsourcing
HR functions since 1997. Through the HROs technology,
the company’s 300,000 employees are able to
retrieve pay information anytime via a secure website.
|
| AT&T |
A seven-year outsourcing deal
allowed AT&T to decrease
payroll by 400 HR employees,
who were then hired by the HRO. The 200 remaining
HR employees direct the company’s human resources
policy and strategy.
|
| IBM |
IBM outsourced a variety of human
resource and payroll functions, reducing
its payroll by 700 employees, who were then hired by the HRO.
|
| Houston Texans |
Outsourcing helped simplify the
payroll of the Houston Texans, where players must
pay taxes in each municipality where they play. The
HROs technology has allowed players to check pay
information from hotel rooms across the country.
|
Why do big companies like Best
Buy, Goodyear, and Proctor & Gamble outsource
when they could easily operate their own HR departments?
For the same reasons smaller companies outsource:
to cut costs, increase productivity, and provide
a higher level of service to their employees.