Pandemic Pushes Healthcare Human Resources Into Outsourcing, Black Book Survey

Healthcare organizations have reached a critical business inflection point brought on by the impacts of the COVID-19 pandemic, massive disruption caused by healthcare digitization and the move towards multi-cloud solutions that other industries have had to grapple with.

“Human Resources in healthcare organizations has traditionally been slow to adapt to new technology,” said Brian Locastro, Senior Analyst at Black Book. “HR was rarely on health systems’ C-Suite priority list for investment, but outsourcing technology is changing that.”

The belief that HR outsourcing in healthcare enterprises is still being driven by cost-cutting has also evolved. “Outsourcing is not going to save your organization significant money in 2021 unless you go down the offshoring path where labor costs are cheaper, but the number of companies outsourcing full or key functions offshore are now diminishing.,” said Locastro. “What you’re getting instead when you outsource HR is the impact it gives back to the health system and how it powers the HR transformation journey.“

Seventy-seven percent of healthcare HR leaders participating in the survey confirm this disruption is changing the outlook for human resources as a function and the valuable role that transformational outsourcing is playing in health systems. “Hospitals are removing the barriers between seemingly disparate systems including HR via multi-cloud solutions,” said Locastro.

Additionally, healthcare companies that outsource their entire HR function to one provider are shrinking, but outsourcing of point solutions is definitely on the rise.

Ninety-one percent of HR leaders surveyed report that the days of HR outsourcers doing everything are probably over. Nearly all (96%) are rethinking or have retracted the total HR system outsourcing contracts to reorganize into a blend of functional types of outsourcing using advanced technologies.

“Human Resources in healthcare organizations is finally getting its moment in the spotlight,” adds Locastro. ”And HR data analytics is absolutely crucial in helping healthcare providers make informed decisions in terms of talent management, engagement, succession planning and employee health and resources, especially through the pandemic.“

Over 2,000 HR outsourcing healthcare users rated the top managed services and software-as-a-service vendors performing atop of Black Book’s 18 proprietary key performance indicators. The highest-ranked client satisfaction and experience scores were awarded for 2020 to:

Enterprise End-to-End Healthcare HR Outsourcing: Accenture HR

Payroll Outsourcing: Paycor

Recruitment Process Outsourcing: Hireology

Legal Compliance Outsourcing: Engage PEO

HR Software-As-A-Service: Ultimate Software

Other highly ranked HR outsourcing vendors included ADP, Insperity, TriNet, Bullhorn, ICIMS Talent, Acquisition Suite, Akken Cloud, Unicorn HRO and Logibec HCM VIP.

About Black Book

Black Book™, its founders, management and staff do not own or hold any financial interest in any of the vendors covered and encompassed in the surveys it conducts. Black Book reports the results of the collected satisfaction and client experience rankings in publication and to media prior to vendor notification of rating results and does not solicit vendor participation fees, review fees, inclusion or briefing charges, and/or vendor collaboration as Black Book polls vendors’ clients. Black Book’s mission is to improve healthcare delivery by expanding the stakeholder’s voice from the front-line employee, IT and financial managers, clinical and nursing staff through the C-Suite and Board, as well as healthcare consumers.

For methodology, auditing, resources, comprehensive research and ranking data, see http://www.blackbookmarketresearch.com or contact research@blackbookmarketresearch.com.

Source: Black Book Research