The global economy is in chaos, the RMB continues to appreciate, domestic inflation is severe, employee salary demands are expanding, and the resignation rate remains high... How will enterprises respond to the current workplace situation? A recent survey report titled "2011 HR Outsourcing Practice in China" released by Zhaopin.com shows that HR outsourcing is being carried out in more industries and small and medium-sized enterprises, gradually becoming a long-term human resources management strategy. Since 2008, the development of HR outsourcing in Chinese enterprises has been rapid, and three years of HR outsourcing practice have helped complete the first phase of management transformation. Through outsourcing, human resources management can play a more core strategic value. The compliance, global synchronization, standard consistency, and talent capability of enterprises can all be improved.
The survey shows that 83% of enterprises use HR outsourcing in human resources management, significantly exceeding last year's proportion of 66% of surveyed enterprises using HR outsourcing. 61% of enterprises have both HR transaction outsourcing and talent dispatching, surpassing the 37% result from 2010. Among them, the number of dispatched employees in 245 companies exceeds the number of formal employees in the company. In addition, 10% of enterprises have included HR outsourcing in their considerations, indicating that enterprises have more flexible strategies and demands in employment methods and talent management.
More than half of the HR outsourcing enterprises have a staff size of over 1,500 and operate in more than 5 cities. The reliance of enterprises on HR outsourcing increases with the growth of employee numbers and operating regions. The most common types of outsourcing are HR agency and talent dispatching. Employee welfare outsourcing has developed rapidly and has reached a market size close to talent dispatching, accounting for 39% of outsourcing enterprises, which is 2.7 times the size in 2010. In addition, enterprises also have strong outsourcing demands in areas such as health management, personal tax planning, logistics management, and employee assistance programs (EAP).
Industries with large employment scales, recruitment difficulties, and high employee turnover rates are more willing to adopt talent dispatching. Due to changes in the market environment and technological advancements, small enterprises have also begun to actively explore the management method of dispatching agents for human resources, and its effectiveness is gradually being demonstrated. However, the management, motivation, and even retention of dispatched personnel have become major challenges for enterprises and outsourcing service providers.
Reporter: Zheng Yong