Dear Sir / Madam,
Human Resource Outsourcing Survey
We are postgraduate at University Technology Malaysia and we are seeking your assistance in
completing a research paper which is to identify and address the impact of human resource
outsourcing on the human resource profession. Responses from all participants will be combined,
analyzed and the findings reported only in their aggregate form.
We appreciate your participation in the survey as the quality of this study depends on your respond
to the questionnaires. Please take a couple of minutes to fill out this questionnaire. Your answers will
be kept confidential and will be used only for academic purposes. Please return the questionnaires to
the person who distributed it or email (softcopy only) to [email protected].
Thank you very much for your cooperation. Your prompt response is highly appreciated. Should you
have any questions or would like to know the results of the study, feel free to contact Sean Lim at
[email protected].
Yours sincerely,
Sean Lim
CONFIDENTIALITY
Views expressed in this questionnaire will be kept strictly and will be used for academic
purposes only. Any information identifying the respondents will not be disclosed.
1. Does your organization currently outsource one or more of its HR functions?
Yes, my organization currently outsources one or more of its HR functions.
No, but my organization plans to outsource one or more of its HR functions in the next three years(skip to
question 13).
No, and my organization has no plans to outsource its HR functions (skip to question 17).
2. HR functions may be partially outsourced, meaning that the organization retains some control
over the outsourced function (e.g., shares access to information with the vendor) or HR functions
may be completely outsourced, meaning that the organization retains no control over the
outsourced function.
Which HR function(s) does your organization partially or completely outsource, and for
approximately how many years has the function(s) been outsourced? (Check all that apply.)
Read each statement and tick the appropriate check box which is best represents your reaction to that statement.
Outsource Outsource How many years
partially completely (round up to nearest year)
Background/criminal background checks
Compensation and/or incentive plans
administration
Consolidated Omnibus Budget
Reconciliation Act (COBRA)
Employee assistance/counselling
Employee communication plans/strategies
Employee relocation
Executive development and coaching
Expatriate administration
Flexible spending account administration
Health care benefits administration
Human Resource Information Systems
(HRIS) development
Payroll administration
Pension benefits administration
Performance management
Policy development and/or implementation
Recruitment/staffing of employees
(nonexecutives)
Recruitment/staffing of executives only
Retirement benefits administration
Retirement planning
Risk management
Strategic business planning
Temporary staffing
Training and development programs
Work/life balance benefits administration
Other (please specify): ______
3. What were your organization’s reasons for outsourcing its HR functions?
(Check all that apply.)
To allow HR staff to focus more on strategy To allow the company to focus on its core business
To avoid the cost of major investments in technology To save money/reduce operating costs
To reduce the number of HR staff and related staff To control legal risk/improve compliance
expenses
To gain access to vendor talent/expertise To gain access to vendor technology
To improve metrics/measurement To make up for a reduction in HR staff
To make up for the lack of in-house talent/expertise To offer services the organization could not otherwise
provide
To provide consistent/improved service delivery To streamline HR functions
Other (please specify): ______
4. What were the obstacles that your organization faced when it decided to outsource its HR
functions?
(Check all that apply.)
Did not know how to write an RFP for vendors Did not know what to look for in vendors
Did not know how to locate vendors Fears about loss of control
Fears about loss of HR jobs/staff Fears that outsourcing might impact company culture
Fears that outsourcing might impact company culture Fears that customer service to our employees might
be affected
Lack of prior outsourcing experience in general Lack of qualified vendors
Resistance from employees in general Resistance within HR
Resistance within senior management Not applicable: did not face any obstacles
Other (please specify): ______
5. As a direct result of outsourcing its HR functions, did your organization achieve cost savings,
incur cost increases, or did costs remain about the same?
Achieved cost savings
Incurred cost increases (skip to question 7)
Costs remained about the same (skip to question 8)
Do not know (skip to question 8)
6. Approximately what percentage of cost savings overall did your organization achieve by
outsourcing HR functions?
% (skip to question 8)
Do not know (skip to question 8)
7. Approximately, what percentage of cost increases overall did your organization incur by
outsourcing HR functions?
%
Do not know
8. What are the main factors to consider when selecting an HR outsourcing vendor? (Check all that apply.)
A compatible corporate culture A proven track record
Cost of vendor services Guaranteed service levels
Flexible contracting options (e.g., annual reviews, Vendor employee-to-client account ratio (i.e., the
ability to modify contract for subpar performance) number of employees assigned to each vendor account)
Physical location of vendor Recommendations from other companies
Niche in a specific area Size of vendor organization
Vendor provides jobs for HR staff laid off due to Other (please specify): ______
outsourcing
9. What have been, if any, the negative outcomes of outsourcing your organization’s HR functions?
(Check all that apply.)
A decrease in employee morale A loss of in-house talent/expertise
Lack of face-to-face contact with Lack of identifiable project milestones
employees/less personal
Lack of remedy(ies) for subpar performance Negative impact on company culture
Negative impact on employee customer service Unable to achieve cost savings
Unable to effectively manage the relationship with Not applicable: there have been no negative outcomes
vendor
Not sure of negative outcomes at this time Other (please specify): ______
10. Overall, how satisfied or dissatisfied is your organization with:
Neither
satisfied
Very Somewhat nor Somewhat Very
Satisfied satisfied dissatisfie dissatisfied dissatisfied
d
The services
provided by your
outsourcing
vendor(s)?
The relationship
with your
outsourcing vendor
(s)?
11. Overall, to what extent has outsourcing HR functions met the expectations of the organization?
To a large extent To some extent
Neither to a large extent nor to a small extent To no extent at all
To a small extent
12. Do you expect that your organization’s outsourcing of HR functions will increase, stay the same
or decrease in the next five years?
Increase (skip to question 13)
Stay the same (skip to question 14)
Decrease (skip to question 14)
13. Which HR functions does your organization plan to outsource in the next three years?
(Check all that apply.)
Background/criminal background checks Compensation and/or incentive plans administration
Consolidated Omnibus Budget Reconciliation Act Employee assistance/counselling
(COBRA)
Employee communication plans/strategies Employee relocation
Executive development and coaching Expatriate administration
Flexible spending account administration Health care benefits administration
Human Resource Information Systems (HRIS) Payroll administration
development
Pension benefits administration Performance management
Policy development and/or implementation Recruitment/staffing of employees (nonexecutives)
Recruitment/staffing of executives only Retirement benefits administration
Retirement planning Risk management
Strategic business planning Temporary staffing
Training and development programs Work/life balance benefits administration
Other (please specify): ______
14. Has the size of your organization’s HR department increased, stayed the same or decreased
overall in the past five years?
Increased Stayed the same Decreased
15. Is this a direct result of outsourcing or plans to outsource?
Yes No
16. Do you believe that your organization will outsource its entire HR function in the next five
years?
Yes (skip to question 18) No (skip to question 18)
17. Why has your organization chosen NOT to outsource its HR functions? (Check all that apply.)
We do not have the resources to manage the We do not want to lose control of our HR functions
outsourcing process
We encountered resistance from employees in We encountered resistance within HR
general
We encountered resistance within senior We felt it would negatively impact customer
management service to our employees
We felt it would negatively impact the company We felt that it would be too expensive
culture
We felt we would be unable to achieve a cost savings We have had a bad experience with outsourcing in
the past
We preferred to develop expertise in-house We preferred to invest in technology in-house
We wanted to maintain face-to-face contact with our Other (please specify): ______
employees
18. In terms of its impact on the HR profession, do you believe that human resource outsourcing has
increased, had no impact on or decreased HR professional job opportunities?
Increased HR job opportunities Had no impact on HR job Decreased HR job opportunities
opportunities
19. In general, how concerned are HR professionals at your organization that outsourcing leads to
reductions in HR staff?
Very concerned Somewhat concerned Not at all concerned
20. In the past, have you lost your job as a direct result of HR outsourcing?
Yes No
21. In general, do you agree or disagree that the role of HR professionals can become more strategic
with the outsourcing of transactional HR functions (i.e., health, retirement and pension benefits
administration, payroll, etc.)?
Strongly agree Somewhat agree Neither agree nor disagree
Somewhat disagree Strongly disagree
22. What are the benefits of outsourcing HR functions for HR professionals? (Check all that apply.)
HR has a better reputation among employees HR has a better reputation among senior management
HR is able to focus on core business functions It allows HR to be perceived as strategic business
partners
It allows HR to spend more time on strategy It improves HR metrics/measurement
development and execution
Other (please specify):______
23. How do you think that human resource outsourcing will change the HR profession?
_________________________
24. How many employees are employed at your location?
_________________________
25. In which state is your location?
_________________________
26. Are there unionized employees (under a collective bargaining agreement) at this location?
Yes No
27. What percentage of employees at this location is unionized (under a collective bargaining
agreement)?
28. Which industry best describes your location’s main business? (Check only one.)
Construction and Mining/Oil and Gas Educational Services
Finance Government
Health High-tech
Insurance Newspaper Publishing/Broadcasting
Manufacturing (Durable Goods) Manufacturing (Nondurable Goods)
Services (Non-profit) Services (Profit)
Telecommunications Transportation
Utilities Wholesale/Retail Trade
Other (please specify) _________________________
29. Is your organization for-profit or non-profit?
For-profit Non-profit
30. Is your organization in the public/government or private sector?
Public/government sector Private sector
