NHS trust deal to expand HR and payroll role

University Hospital Birmingham (UHB) NHS Foundation Trust has signed a landmark deal with outsourcing provider Xchanging to set up a new HR and payroll business.

The multi-million pound venture, the first of its kind in the NHS, aims to expand the hospital’s existing payroll business, which currently serves 10% of all trusts and 110,000 staff across the health service.

The partnership deal will last for a minimum of five years and marks Xchanging’s first entry into the public sector. The new organisation aims to service 30% of the NHS market – about 400,000 employees.

Services offered will include all HR transactional activity, as well as recruitment and training administration.

Caroline Wigley, UHB’s director of organisational development, told Personnel Today how the trust came to select a private sector partner for the venture.

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“We got to the stage where the trust needed investment to take our existing payroll business to the next stage,” she said.

Wigley said existing payroll staff would still be employed by the trust, but would be managed by Xchanging.