---
title: Companies are weary about internal HR's ability to retain talent
description: As the economy is showing little sign of steady or significant progress, companies who seek HR outsourcing services may be maximizing efficiency and productivity.
---

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October 22, 2012

# Companies are weary about internal HR's ability to retain talent

Written by: [Innovative Employee Solutions](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/innovativeemployeesolutions)

As the economy is showing little sign of steady or significant progress, companies who seek [HR outsourcing services](http://innovativeemployeesolutions.com/wp/hr-outsourcing-services/) may be maximizing efficiency and productivity in terms of workforce hiring, retention and management, according to a recent study by [KPMG](http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/hr-transformations-survey/Documents/rethinking-human-resources.pdf) and The Economist Intelligence Unit.

Rethinking Human Resources in a Changing World surveyed 418 executives from companies around the world in diverse industries. As companies are growing global workforces and adapting to new employee management technologies, the study found that only 17 percent of respondents found that HR is demonstrating its value to the business. The majority suggested that their HR divisions are struggling to keep up.

Businesses are keen to grow but simultaneously want to keep costs low, which impacts HR performance. The study identified three challenges that HR services face.The first is seeking global talent while retaining local insights. The second challenge is managing a flexible and virtual workforce without sacrificing loyalty or career development. The final one is maintaining engagement in the face of a less committed and more flexible workforce.

Researchers suggest that the key to improvement in these areas lies in increasing the workforce's commitment to the organization. The study quotes the Corporate Executive Board, which found that employees who are most committed to their organizations expend 57 percent more effort at work.

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