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Companies increase human resource services budget

Posted on June 3rd, 2011 Read time: 1 minutes

Despite the news that May marked the slowest pace for job creation in the past eight months, many companies continue to invest in their human resource departments.

A report by HR solutions firm Bersin and Associates called The HR Factbook 2011: Executive Summary, pointed to an increase in companies' HR services funding.

"The increased spending on human resources shows how businesses around the world are rapidly starting to rebuild their talent pipelines and cores services to engage and retain people," Josh Bersin, chief executive officer and president of Bersin and Associates, told Business and Legal Resources.

The media outlet points out that the study – which surveyed nearly 300 U.S. HR professionals – found that organizations, on average, spent 1.4 percent more on their HR programs, services and systems in 2011, year-over-year.

Additional funds primarily went toward hiring more workers, as the average number of HR staff has increased by 1.8 percent this year. Furthermore, investments were made toward the core services of organizations, such as compensation, benefits, payroll and employee relations, which accounted for approximately 60 percent of budgets. Around 33 percent was allocated to talent management, as organizations invested more in recruitment and development initiatives. 

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