Survey reveals challenges facing HR departments

A key survey revealed increasing challenges, including lack of suitable personnel and rising costs, facing HR departments.

It also found a majority opting to outsource HR issues, especially in Beijing.

The survey, released Wednesday, was jointly conducted by the Beijing Foreign Enterprise Human Resources Service Co Ltd and the Ministry of Human Resources and Social Security.

It covered more than 1,000 companies in six cities, including Beijing, Guangzhou and Xi'an. Over half of the surveyed were foreign-funded enterprises.

The survey found that the challenges facing Human Resources departments include surging labor costs, welfare and package requirements of contracted labor, a shortage of suitable managerial staff and outdated management mechanisms within companies.

According to the survey, HR outsourcing has become more and more popular, especially in the multinationals in China. In Beijing, 68 percent of the surveyed use this outsourcing service.