Tight labor market pushes employee training outsourcing

NEW YORK - With unemployment rates remaining low and the booming economy showing no signs of slowing, filling vacant positions has become more challenging and costlier. One way companies are dealing with recruiting and retaining qualified employees is by outsourcing. Last year, 58% of firms outsourced employee training initiatives, compared to just 22% in 1996, results of a survey "Outsourcing Human Resource and Employee Benefit Administration" show. The survey by Buck Consultants, a leading worldwide human resources consulting firm was based on interviews with 225 employers nationwide. It looked at the prevalence of outsourcing in human resource and employee benefit administration; the objectives of outsourcing; the methods of employing outsourcing; the functions being outsourced; and the types of organizations providing the services. Other findings of the study included: * 38% of respondents outsource recruitment functions, compared to 8% in 1996; * Over 70% of the respondents currently outsource one or more HR and/or employee benefit function. In 1996 the figure was 47%. * 68% of respondents are not planning to outsource any additional functions in the near future; * Work-life benefits is the least outsourced of all HR functions; * Cost (90%) and reputation (70%) are most important when selecting an oursourcing vendor.