Previous Article Next Article BP makes $100m saving since handing HR to ExultOn 19 Jun 2001 in Personnel Today BP Amoco has saved $100m (£71m) in the past year by outsourcing its HRdepartment to Californian company Exult. Dr Tony Hayward, group treasurer of BP Amoco, told senior HR professionalsin London last week that BP has cut its annual spend on HR support from $350mto $250m since the deal came into operation last summer. The HR staff-to-employee ratio fell from 1:60 to about 1:150 during thefirst year of the five-year contract. The myHR website is now the company’s second most visited Internet siteafter the BP home page, receiving more than 12,000 unique hits a week. Over thenext 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 theHR group 15 days to figure out what the correct package was,” saidHayward. “Now any employee can go into it using the new web portal and getabsolute clarity on what their overseas package will be.” BP decided to outsource the transactional activity in the UK and US to Exultalthough, as Hayward explained, “It is not about taking BP’s problems andoutsourcing 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 150different payroll systems and over 40 employee appraisal systems in BP, andboth partners also had to educate staff and line managers on how to use thetechnology. Hayward said, “It has been about increasing employee satisfaction.There was a great deal of dissatisfaction among staff about the quality ofdelivery of the HR function.” l Last week’s Personnel Today News Barometer showed that 54 per cent ofrespondents do not believe that outsourcing is a more effective way ofdelivering HR. Paul Brewer, HR director Europe of telecoms company ETI, said, “Icannot see anything but trials and tribulations for any company which removesthe HR function to an 0800 number. “You may not see it straight away but the people you employ will becomeless engaged, less motivated and eventually turn-over will reflect this.” By Katie Hawkins Related posts:No related photos. Comments are closed.