Decision to outsource HR department for 500 person site

Background:
Unionised Logistics and Distribution Company
Established for a number of years
HR team previously consisted of HR Manager, HR Officer, 2 x HR Administrators, 1 x Training Officer
HR function viewed as administrative
High turnover of HR Manager positions
High levels of absence within the team
No HR metrics or KPI’s
Expense for training consultants and recruitment agencies spiralling
A number of business issues on the site – communication, attendance, turnover

Diagnosis:
1 day facilitated discussion with the Executive Team as to the role of HR, where they are currently and where they needed to be
Questionnaires sent to Management groups across the site rating HR on where their performance was currently and where they needed to be
Worked with the HR team to understand processes and approach

Findings:
The role of HR Manager was not clearly defined
The previous incumbents were not suitably experienced to deal with the range of HR issues required
Processes were paper based and not adding value to the business
High percentage of time was spent on admin and recruitment

Approach:
When the findings and the facts were presented back to the Executive team they agreed that the role as it stood was not a "doable" job and therefore committed to re-organising the internal administration support and outsourcing all other professional HR support. Right Hand HR placed a full-time HR Officer on the site to deal with all day-to-day issues and then provided an HR Manager and HR Director on a flexible basis.

Results:
Absence on the site reduced from 7% to 3.2%
Labour turnover reduced
Employee Satisfaction increased
Spend with recruitment agencies reduced by 75%
Spend with Training consultants reduced by 50%
Number of training days for employees increased from 2 to 5 per annum
Outsourced HR service not only paid for itself but made a significant contribution to the profitability of the site