Human resource (HR) outsourcing in European compensation management in the light of CRANET research

Abstract

© 2016, Budapest Tech Polytechnical Institution. All rights reserved. The purpose of this paper is to explore the practice of outsourcing in Human Resource Management (HRM) in countries of Europe-EU and Serbia. An analytical exploration of available literature in the area of outsourcing was made, as well as a statistical analysis of the CRANET research data to determine the actual level of outsourcing in HRM in companies around the world, and to make comparison between Serbian compensation outsourcing practice and countries of 20 EU countries. Results of the analysis pointed out that outsourcing of payroll and benefits is used lesser than outsourcing in the field of pensions. Serbian companies use outsourcing at a new low level. There are statistically significant positive correlations between outsourcing of payroll, pension and benefits among each other, and with the number of employees in HR department. A multiple regression model was used to explore the predictors of HR outsourcing. The differences between EU countries in the area of compensation outsourcing have been discussed.