Mgt511 Case Assignment 3

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TUI MGT511 – ADVANCE TOPICS IN HUMAN RESOURCE MANAGEMENT MODULE 3 – CASE ASSIGNMENT Strategic focus – i.e., how might HR outsourcing further assist the growth of AFL?/ Cost savings normally associated with outsourcing HR A number of macro issues, including uncertainties in Europe and concerns over global economic growth, are currently impacting business sentiment. While many U.S. businesses continue to carefully manage their budgets, they’re simultaneously looking to gain a foothold in the current market. This operational conundrum presents a unique challenge — especially in the HR environment— where employee retention and skill cultivation is key amid pressures to reduce costs. The economic environment and shifting priorities are key influencers of current HR strategy, as businesses seek cost-effective ways to focus on core competencies, growth and talent management. Many companies have found that outsourcing some of their HR functions make these goals a reality. The trend in the business world today is no longer directed toward the simple acquisition of technology. Rather it’s the prudent utilization of technology to support the trend toward furthering a company’s “people agenda.” Achieving a balance between up-front and ongoing costs and reaping the benefits of these investments by cultivating employee growth, is the ultimate target. Among the main goals identified by HR departments, the most commonly cited include stabilizing costs, lowering their risks and increasing employee productivity. (ADP Research Institute, 2011). Alleviating the administrative burden on their internal staff and drawing on the knowledge and expertise of external partners were key benefits cited for outsourcing certain administrative functions. (ADP Research Institute, 2012). It stands to reason, as outsourcing then allows HR to move forward with strategic organizational
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