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Saturday, February 1, 2014

HR OUTSOURCING

HR OUTSOURCING
How HR Outsourcing benefits your organization!


If you were a child in the 70’s or the 80’s then you would definitely remember the fact that your father worked only in one company and most likely his tenure (existence) in the company was well over two decades.  For all of us 70’s & 80’s children we could identify with the fact that our dad’s first job was their last job and that they would retire from the same company that issued them their first appointment letter.  In those days our fathers were defined by the company they worked for (irrelevant of the post) and then the post they held.  In those days your father was either an accountant, a banker or a lawyer or just worked in an office and maybe a celebrity doctor. 

As the 90’s ended colleges mushroomed and pseudo entrepreneurs bought licenses to open a huge number of colleges that started printing degrees and flooded the workforce with a mass volume of new and fresh young blood t take over after our dad’s retired.  This new youth being smarter and being weaponized by technology destroyed any and all jobs for secretaries and receptionists as they became a one window solution that was quicker and more efficient and could multi task. 


By the time people were itching with the Y2K bug colleges started specializing in ridiculous degrees such as a 12 month course in MBA which gave you a paper that said you were qualified in Marketing as well as Finance or were a Marine Biology Botanist.  The likes of Lipton with the introduction of a Major player such as Tapal started looking for people who were certified Tea tasters and finding the right kind of Human Resource made colleges churn out (By the thousands) HR executives (with no practical experience) as people who would facilitate HR departments in finding the right person. 


Sadly these two words “HR Outsourcing” became a cliché due to the fact that everywhere you looked you had some kid in his late 20’s who was pitching solutions to seasoned HR departments with only one years’ experience as an intern him or herself.  Over the past ten od years these money minded people trained themselves by working through daddy’s contacts and many organizations bore the expense of these kids trainings.  Suddenly the glamorized element of being a consultant made seasoned companies focus on only the three first alphabets of the word consultant and they recoiled and took everything back in their grasp.


Today in Pakistan we have a lot of job insecurity.  Many companies are faced with so many issues such as non-working days due to strikes etc. or face such bad luck that in the past few years what one would have thought to be a good company turns into a bad career choice.  I have seen many companies (big & small) simply close their doors due to external or internal matters beyond their control.   Also if one considers the fact and believes that CEO’s don’t run companies rather the ground forces do then one should note that “people” suffer the most when it comes to a company closing down or downsizing.


I would suggest that every organization utilize a HR Outsourcing company today to protect its employees.  If done with a solid company HR Outsourcing is one area that will benefit your workforce immensely because rather than pose as a threat the reasons given below will NOT only protect the employer rather provide immense benefits to any company as well.  Let’s begin with why you should outsource your HR and with whom.

  1. If you run a huge workforce or have a small army of even 20 people you should always outsource your HR to a third party because in case you shut shop or need to downsize or replace an employee a good HR company will not only take care of the legalities for you as a company but will also find another opportunity for the person you might want to change or see as someone who is dead weight.  Not all marriage’s work professionally so why not protect your employee and yourself by having a vendor that can do just that for you. 

  1. When it comes to benefits if you choose the right HR vendor that company will be able to get the maximum number of benefits even more than you could have provided for you as they would have an immense amount of workforce and the volume they can negotiate with an insurance company for example would really benefit your employees as well.  

  1. HR departments go insane when it comes to medical compensation claims and the paperwork turns the organization into a glorified post office that deals in paperwork endlessly which creates an audit nightmare.  So why not have a company that is secure which will take care of these VAS elements of HR for you.  When you choose such an organization make sure they themselves have been in existence for over two decades and have a solid bank statement which will demonstrate a good “stable” business turnover.   Volumes do not matter because if you are consistent in what you do then the amount does not matter.

  1. HR companies are only as good as the customer service they provide.  If they have the ability to provide solid “Human” resources where the owners are involved supported by solid technology and immense professional contacts only then should you consider talking to them.  These are not the times to test out newbies with such a service.  It may be ok to give a young pup two to three executive search tasks so that he may approach his college buddies but one should NOT risk a company’s workforce security to the likes of new blood as your employees demand security.

  1. The last thing one should look for when you engage any outsourcing for HR is the actual number of placements it does and the value added service verticals that it has with its organization.  Good stable HR companies will always not only have a pool of quality resumes but will also have an immense databank of clients which will secure you if you need to replace an employee or need a career option as an employee within the same field internationally.


If you are able to consider a proper HR Outsourcing company as a strategic partner with whom you are able to sign a NDA and then lock in on a comfortable rate you will realize that you will definitely be able to control on your COGS and eliminate a huge amount of the stress you have.  It’s like when P&G decided to eliminate all sales positions within its organization in Pakistan and only have a Director Sales that sat at IBL and controlled the sales team to work smarter and captured the entire market with Always when advertising sanitary napkins was thought to be un-Islamic.  Also this outsourcing of the sales force played a major part in Pakistan for the change of a company name from Inter-Pak Shaving to what we know as Gillette (the best a man can get)


Before you disqualify HR Outsourcing know that not only will you save in money rather your HR department will save time and an immense amount of hassle when you eliminate many factors beyond your control when you secure the best interests of your organization.  If you would like to talk to someone in the HR field who is actually good at what they do and can deliver all the above services then e-mail me and see what the world has in store for you.

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2 comments:

  1. Well explained..With so many players in the market it becomes very important for any company to maintain a brand value for the company. Outsourcing of the HR services helps the company get a professional and polished image.

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