Florida Outsources HR Operation

August 20, 2002 (PLANSPONSOR.com) - The latest "firm" to embrace the outsourcing of its human resource (HR) functions is none other than the State of Florida, which has hired a Cincinnati outsourcing company to handle benefits, payroll, and other HR services for its 189,000 employees.

The seven-year $280-million deal with Convergys Corporation also covers recruiting and training services to be provided from customer centers in North and South Florida. The centers integrate Web-based employee service technologies with traditional channels such as telephone, fax, mail, and interactive voice response, the company said.

State officials said the deal could save the state up to $173 million over the life of the contract.

According to a Tallahassee Democrat news report, the move represents the biggest privatization effort of Gov. Jeb Bush’s administration.

State officials told the Democrat that the Convergys platform:

  • will allow employees to manage their own personnel information over the Internet
  • will allow changes to addresses and other personal information
  • includes a “personal skills inventory” for matching against job openings
  • includes a self-service portal for enrollment in benefits programs.

Gov. Bush’s move to outsource the state government’s human resource operation has ample private-sector precedent.