Outsourcing HRM activities in Australian organisations

Abstract

Although human resource management (HRM) outsourcing is an international trend little has been written in the Australian literature about HRM outsourcing choices. The aims of the research are to determine first which HRM areas are most likely in Australia to be initiated using external consultants, second whether organisational size or sector impacts on the outsourcing decision and third the type of skills that HRM consultants bring into organisations. Results from an on-line survey generating 1372 responses identify training and development, recruitment and selection, and HRIS as the primary outsourced HRM areas. With respect to organisational determinants, larger organisations were more likely to use consultants; sector differences revealed higher recruitment and selection and performance-related pay outsourcing in the private sector, higher HRIS outsourcing in the public sector, and a focus on employee relations in the not-for-profit sector. There are no differences in the qualifications of HRM professionals and consultants but consultants are more likely to have broader business experiences.