HR OUTSOURCING: The statistics you need to know

OSHR on the Rise with the Global Market to Reach AUD $71.72 Billion by 2030

1. WEEKLY INSIGHT

BFSI, Healthcare, and IT Lead the Charge: OSHR Global Market Dominated by Key Sectors

• The Global Human Resource Outsourcing market was valued at AUD $53.17 billion in 2023
• This is anticipated to reach AUD $71.72 billion by 2030
• This will be a CAGR (Compound Annual Growth Rate) of 4.3% between 2024-2030.

What’s driving this? Cost reduction, increased efficiency, & growing need for specialised HR expertise. Get ready for expansion: Anticipate an exciting surge in the Australian HR Consulting Service sector, with a projected annual growth rate of 6.7%. By 2024, we’re looking at a market value that’s set to reach $721.5 million (Asia Pacific HR Consulting Service Market Report 2024)

The OSHR market 2024 has been predominantly driven by the following sectors: BFSI (Banking, financial services and insurance), Healthcare, IT, Hospitality, and Retail.

2. HR/IR & LEADERSHIP

7 Global Companies That Laid Off HR Staff in 2024

1. Airbnb: Despite profitability, Airbnb laid off 30% of its hiring team in 2023, goal to become “leaner.”
2. Amazon: In April 2023, Amazon conducted layoffs across various departments, including HR, as part of broader cost-cutting measures.
3. Boeing: To streamline its operations, Boeing combined attrition and layoffs to reduce 2,000 jobs in finance and HR, with some outsourcing.
4. Google (Alphabet): Google let go of “a few hundred” employees from its global recruiting team in September 2023, emphasising it wasn’t a large-scale layoff.
5. LinkedIn: Microsoft, LinkedIn’s parent company, initiated job cuts in February 2023, including some within LinkedIn’s recruiting team.
6. Meta: Meta’s CEO announced a second round of layoffs in March 2023, including reductions in the recruiting team.
7. Uber: Facing economic headwinds, Uber laid off circa 200 recruiters in June 2023, representing 35% of its recruitment team.

3. MARVINHR

Your HR Partners – marvinHR – Don’t let compliance headaches hold your business back. Partner with us for peace of mind and a well-managed workforce. Benefits of outsourcing:

• Businesses that outsource HR functions tend to grow 7-9% faster.
• Outsource HR businesses experience 10-14% lower employee turnover.
• Businesses that outsource HR are 50% less likely to go out of business.

4. WEEKLY TOP READS

1. HR Appreciation Day: Bridging AI and Talent
2. The Aussie workplaces have axed working from home and ordered employees back to the office
3. Rippling and Pay Australia partner to tackle payroll talent challenges
4. Fair Work faults employer for using unclear language on termination notice