Global Study on Human Resource Outsourcing

Dear Management Professional, I am writing to invite you to participate in the Global Study on Human Resources Outsourcing. This project was designed to ensure that you and your organization benefit from partnering with us in this effort, that participation will demand little of your time, and that complete anonymity is assured. We believe the findings will be extremely helpful for firms reflecting on their level of human resource outsourcing (HRO). Your participation is critical to the success of this effort. As a partner, you will receive a report of the studys findings. Customized reports will also be available. These reports will show the link between the outsourcing of various HR activities and several important outcomes: Employee satisfaction Employee turnover Customer satisfaction and loyalty Financial performance Participants will also receive information on the latest trends in HR outsourcing. Organizations may also indicate interest in participating in a second phase which involves surveying a small sample of employees at your organization to provide additional insights into how HRO is affecting YOUR employees and organizational performance. The results of this study will provide insights into several important questions faced by executives in this era of global sourcing. A sample of the many questions addressed by the study include: What HR activities are firms in my industry outsourcing? Where is the growth in HRO? How is HRO related to employee satisfaction and turnover? Is there a link between customer satisfaction and level of HRO? Your participation at this stage is critical! If you have any questions please contact Thomas J. Norman at 612-6268304 or tom@hrosurvey.com If you would like to receive a copy of the results of this survey, please enter your email here. __________________________________________________________________________________________ Thank you for your time.

Thomas J. Norman Researcher and Instructor Industrial Relations Center Carlson School of Management University of Minnesota

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This survey collects data on the outsourcing of human resource management (HRM) activities and the effect of outsourcing these activities on organizational outcomes, such as turnover, employee satisfaction and customer loyalty. Hundreds of organizations have been invited to participate. It should take approximately 30 minutes to complete this survey for someone familiar with their organizations HR function. Your responses will be strictly confidential and data from this research will be reported only in the aggregate. Each participant provided required information (noted with a*) will receive a summary of the results. See www.hrosurvey.com for more info. You may also contact the researcher at tom@hrosurvey.com. 1. * On a 5-point scale how familiar are you with the HR function at your organization?
1 Very Unfamiliar 2 Somewhat Unfamiliar 3 Neutral 4 Somewhat Familiar 5 Very Familiar

2. Enter the name of your organization and information about the person who primarily provided the response to this survey. If the results you are providing are for a division or holding company, please also report the parent company. * Name of the Organization: ________________________________________________________________ * Years of Experience with this Organization: ___________ Current Job Title: _______________________________________________________________________ Name of Person Completing this Survey:_____________________________________________________ 3. How many employees work at your organization measured as FTEs (full-time equivalents) in the following roles? (Note: People managers include anyone with at least one person reporting to them.) * Total # of employees: ____ Total # of people managers: ____ * Total # of employees located outside US ____ * Total # of HR employees: ____ HR Generalists: ____ Staffing: ____ Compensation: ____ Training: ____ 4. If your organization conducted an employee satisfaction/engagement survey in the past five years, please provide the most recent overall score for your organization along with the total points possible and year. (Example: Employee Engagement: 4.2
out of 5 possible points in 2005 Employee engagement: NA.)

Employee Satisfaction: _____ out of _____ Year ____ Employee Engagement: _____ out of _____ Year ____ 5. If your organization conducted a customer satisfaction/loyalty survey in the past five years, please provide the most recent overall score for your organization along with the total points possible and year. (Example: Customer Satisfaction: 78 out of 100
in 2004 and Customer Loyalty: 5.8 out of 7 points in 2006.)

Customer Satisfaction: _____ out of _____ Year ____

Customer Loyalty:

_____ out of _____ Year ____

6. Provide the most recent data on the overall level of employee turnover (company initiated and employee initiated, include layoffs, terminations and resignations) and/or voluntary (employee-initiated) turnover. * Overall turnover: ________% Year __________ Voluntary turnover: ________ % Year __________ 7. * List the HR/HRM activities your organization is most likely to begin outsourcing in the next two years.

8. * List the HR/HRM activities that you believe most directly affect overall financial performance (positively or negatively) at your organization.

9. List any outsourcing vendor(s) used for HRM activities such as selection, compensation and training.

* Responses are required for these questions.

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10. Estimate the percentage of time or effort spent on each of the following human resource management activities or processes by internal employees (include time spent by HR, general staff and managers) and external parties. These two numbers should total 100%. However, you may enter NA (Not Applicable) in both columns, if you do not engage in the listed activity. If you cannot make a reasonable guess, please enter DK (Dont Know). If your organization is currently outsourcing a significant portion of this activity, report your best guess of the year your organization began outsourcing.
Internal Staff External Vendor Year Began Outsourcing

EXAMPLE: Pre-employment testing A. *Overall Time Spent Aligning Employees with Organizational Goals A1. Addressing employee complaints about coworkers A2. Communicating performance results about the organization to employees (quarterly updates, company dashboards, etc.) A3. Communicating culture and vision to employees A4. Design of organization structure A5. Union/labor relations management A6. Conducting employee attitude surveys A7. Resolution of employee issues and complaints with management B. *Overall Time Spent Attracting, Selecting & Recruiting Talent B1. Pre-employment testing and assessment B2. Job analysis and developing job descriptions B3. Relocation assistance and reimbursement B4. Employee assistance program B5. Resume screening B6. Interviewing for non-exempt positions C. *Overall Time Spent on Compensation, Benefits & Other Rewards Activities C1. Annual employee benefit enrollment C2. Salary surveys C3. Delivery of employee performance reviews C4. Design of group level bonus programs C5. Merit pay increase planning & implementation C6. Employee Recognition programs C7. Responding to questions about pay and benefits D. *Overall Time Spent on Training & Developing Talent D1. Tracking employee training & competencies D2. Development of customized training programs D3. Delivery of technical and computer training D4. Delivery of management training D5. New employee orientation sessions and training D6. Tuition reimbursement D7. Mentoring and coaching

85%

15%

2001

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* Responses are required for these 4 questions

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Global Study on Human Resource Outsourcing

11a. Considering ALL OF the human resource management activities your organization is CURRENTLY outsourcing
How satisfied are you with: (5) (4) Very Satisfied Satisfied (3) (2) (1) Neutral Dissatisfied Very Dissatisfied

* the strategic impact on the HR function (ability to have internal staff focus more on strategy)? * the impact on organizational effectiveness in terms of human capital management? * the impact on creating standardized practices? * the level of improvement in self-service functionality? * the change in service quality? * the reduction in direct costs? * the reduction in indirect costs? * the degree to which capital costs were avoided or reduced? * your ability to manage outsourcing vendor relationships? * the OVERALL impact on the organization? * OR My organization does not outsource any HR practices
How satisfied are you with:

11b. Considering ONLY STAFFING AND ATTRACTION activities your organization is CURRENTLY outsourcing
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

the strategic impact on the HR function (ability to have internal staff focus more on strategy)? the change in service quality? the degree to which capital costs were avoided or reduced? your ability to manage outsourcing vendor relationships? the OVERALL impact on the organization?
How satisfied are you with:

11c. Considering ONLY COMPENSATION AND BENEFIT activities your organization is CURRENTLY outsourcing
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

the strategic impact on the HR function (ability to have internal staff focus more on strategy)? the change in service quality? the degree to which capital costs were avoided or reduced? your ability to manage outsourcing vendor relationships? the OVERALL impact on the organization?
How satisfied are you with:

11d. Considering ONLY TRAINING AND DEVELOPMENT activities your organization is CURRENTLY outsourcing
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

the strategic impact on the HR function (ability to have internal staff focus more on strategy)? the change in service quality? the degree to which capital costs were avoided or reduced? your ability to manage outsourcing vendor relationships? the OVERALL impact on the organization?

12. After completing this survey how confident are you that your responses accurately reflect the nature of HR Outsourcing at your organization?
0 Not At All Confident 1 Somewhat Confident 2 Reasonably Confident 3 Very Confident

Please list anything that you would like to share with the researcher about HR Outsourcing in your experience or Contact us at info@hrosurvey.com with questions or comments.
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any comments about this questionnaire. ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________

THANK YOU! Visit www.hrosurvey.com for updates on this project and results from this survey.

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