Region may end HR outsourcing

Niagara Region hopes to shave about $830,000 a year from its costs by doing its own payroll and human resources services.

The transition, however, could take three years to complete, as staff are trained to do the job.

The Region has outsourced its payroll services since 2004 at a cost of about $2.5 million every three years.

Niagara’s corporate services committee voted Wednesday to support a recommendation from human resources director Peter Wadsworth to phase out its contract for payroll services, and train staff to do the job because the Region has lost the expertise needed to provide the services.

“Once you lose your knowledge base, it’s difficult to bring it back,” Wadsworth said.

However, he said the Region does have the capacity within its existing staff to provide the service, once they receive the training they need.

“We just need the training and skill set to take on this function,” said chief administrative officer Carmen D’Angelo.

Although the contract for external payroll services expires at the end of March next year, the Region will extend the contract for three more years to allow the training to take place.

Wadsworth said the Region should also immediately see substantial cost savings while the transition is underway.

A few councillors were skeptical. “That’s amazing,” said Niagaraon-the-Lake Coun. Gary Burroughs. “They’re going to be dumped and they’re going to charge us less while we’re doing it.”