Minneapolis, Minn., - Ceridian has been selected as the human resources outsourcing (HRO) provider for PHH Corporation (NYSE: PHH).
Ceridian will be responsible for a wide range of processes for 8,000 PHH employees in the U.S. and Canada, including HR and payroll management, benefits, time and attendance, talent and acquisition management, COBRA, Flexible Spending Account services, tax filing, work-life and employee assistance program (EAP), and HR compliance. In its role as HRO provider for PHH and its other HRO clients, Ceridian provides functional support of multiple HR and benefits functions, and in turn alleviates recurring administrative tasks and cost burdens for its client companies.
"We selected Ceridian because of the breadth of its HRO offering and proven track record in serving companies of our size. Because PHH's business is outsourced mortgage, fleet management, and other financial value-added services, we were also interested in partnering with an HRO provider with a strong understanding and track record of customer service," said Neil Cashen, PHH Corporation executive vice president and CFO. "PHH was recently re-established through a spin-off, which creates a challenging environment as the new corporation needs to establish itself quickly in every way."
According to Keith Strodtman, Senior Vice President and General Manager of HRO for Ceridian, "The synergy between PHH's needs and Ceridian strengths was clear from our earliest discussions. PHH is like many other mid-market companies that have gone through some organizational or ownership changes and have turned to Ceridian for transformation through integrated end-to-end HR outsourcing. It was also clear that PHH needed an HRO solution that could help them manage their workforce. With our heritage in HR outsourcing, we knew we could deliver on that for them as well."
Moving to a fully-outsourced HR and benefits model is a trend that is occurring widely in the U.S. and internationally. Adoption of an HRO model provides companies cost containment and predictability, the ability to focus more resources on their core business, the use of a single vendor for HR management, and the capability to deliver benefits to employees with state-of-the-art business technologies, which would be costly and time consuming to develop internally.
"IDC forecasts that HR BPO spending will reach $16.5 billion by 2009 in the U.S., growing at a CAGR of 16 percent, the fastest-growing segment of HR services," said Lisa Rowan, IDC's program manager for HR and Talent Management services research. "A large portion of the growth will come from the mid-market for which HR BPO is a compelling alternative to in-house solutions."
Ceridian has been providing strategic HRO services since 1995 and was one of the first human resources outsourcing companies to provide this level of business process outsourcing. Today Ceridian is one of the leading providers of HRO to mid-market-sized companies, those with 2,500-10,000 employees. Its HRO client list includes marquee U.S.-based companies such as Johns Manville, FMC Corporation and several other corporations. Ceridian also provides HRO services in Canada and the United Kingdom through its subsidiaries, Ceridian Canada and Centrefile.