Worcestershire County Council has struck a deal with Malvern Hills District Council to merge HR departments.
The two departments first joined forces in October 2007, for a trial period which has proved so successful that they have now signed a two-year agreement. It is expected to save the smaller district council £10,000 a year, with no jobs lost.
The move is part of a new trend by local authorities to share back-office functions, including HR.
Councillor Paul Cumming, portfolio holder for HR at Malvern Hills, said: “This initiative is a great example of how we can use partnerships to improve our effectiveness and efficiency.
“By working with the county council in this way, we get direct access to the comprehensive HR services of a large organisation with a range of expertise. This will greatly improve our HR services and provide real value for money.”