Consignia posts its intention to outsource HR

Consignia is set to outsource its HR administration in a 10-year deal worth
£600 million in a bid to cut HR costs and update its IT systems.

The troubled firm, which is losing £1.5 million a day, will put the contract
out to tender in May and aims to sign an agreement this financial year.

Gerry Smith, who is responsible for Consignia’s HR administration, which
costs £60 million a year to run, said: "Currently our HR systems are
predominately paper-based. We want to equip ourselves with modern HR equipment
and processes in line with other modern employers."

The deal would include all the company’s 900 HR administration staff and
provide all areas of functional HR, such as payroll, benefits, sickness
absence, training, and recruitment.

Smith said the move would open the way for Consignia to modernise its HR
systems by increasing its use of e-HR.

"The company has an intranet site, but it is not as well used for
HR-type process as it might be," he said.

Consignia is looking for a large outsourcing firm with a proven track-record
in managing contracts on a similar scale.

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