Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

BP makes $100m saving since handing HR to Exult

by Personnel Today 19 Jun 2001
by Personnel Today 19 Jun 2001

BP Amoco has saved $100m (£71m) in the past year by outsourcing its HR
department to Californian company Exult.

Dr Tony Hayward, group treasurer of BP Amoco, told senior HR professionals
in London last week that BP has cut its annual spend on HR support from $350m
to $250m since the deal came into operation last summer.

The HR staff-to-employee ratio fell from 1:60 to about 1:150 during the
first year of the five-year contract.

The myHR website is now the company’s second most visited Internet site
after the BP home page, receiving more than 12,000 unique hits a week. Over the
next two years, BP will spend $10m on a new website.

HR transactions are quicker to carry out as a result of the new system.
"A year ago a department wanted to send someone to Azerbijan. It took the
HR group 15 days to figure out what the correct package was," said
Hayward.

"Now any employee can go into it using the new web portal and get
absolute clarity on what their overseas package will be."

BP decided to outsource the transactional activity in the UK and US to Exult
although, as Hayward explained, "It is not about taking BP’s problems and
outsourcing them to someone else to fix."

The delegates at the "Tomorrow’s Organisations" conference,
organised by Create, were told that Exult had to standardise more than 150
different payroll systems and over 40 employee appraisal systems in BP, and
both partners also had to educate staff and line managers on how to use the
technology.

Hayward said, "It has been about increasing employee satisfaction.
There was a great deal of dissatisfaction among staff about the quality of
delivery of the HR function."

l Last week’s Personnel Today News Barometer showed that 54 per cent of
respondents do not believe that outsourcing is a more effective way of
delivering HR.

Paul Brewer, HR director Europe of telecoms company ETI, said, "I
cannot see anything but trials and tribulations for any company which removes
the HR function to an 0800 number.

"You may not see it straight away but the people you employ will become
less engaged, less motivated and eventually turn-over will reflect this."

By Katie Hawkins

Avatar
Personnel Today

previous post
Docusoap hell – turning staff into stars
next post
TD2001 short-listed teams announced

You may also like

Grants scheme set up to support women’s health...

16 May 2022

How music can help to ease anxiety at...

9 May 2022

OH will be key to navigating ‘second pandemic’...

14 Apr 2022

OH urged to be aware of abortion consultations...

8 Apr 2022

How coached eCBT is returning the workplace to...

8 Apr 2022

Why now is the time to plug the...

7 Apr 2022

Two-thirds of shift workers feel health affected by...

18 Mar 2022

TUC warns of April Covid risk assessment ‘confusion’

14 Mar 2022

Consultation on new NHS cancer standards, as waits...

11 Mar 2022

Pandemic pivot to home working fuelled mental ill...

11 Mar 2022
  • What it really means to be mentally fit PROMOTED | What is mental fitness...Read more
  • How music can help to ease anxiety at work PROMOTED | A lot has happened since March 2020, hasn’t it?...Read more
  • Why now is the time to plug the unhealthy gap PROMOTED | We’ve all heard the term ‘health is wealth’...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+