Outsourcing Problem Analysis

As an HR professional, you have responsibilities in several broad areas that have a significant impact on your company's bottom line, directly contributing to the corporate return on investment. The outsourcing choices you make are critical decision points that affect both your employer and the HR community at large. We recognize that you want and need to make informed choices, and we can help.

The following problem analysis explores emerging strategies in human resources.

Increased workloads resulting from governmental requirements, budgetary cutbacks, profitability margins and operational necessity require that HR professionals do more with diminishing resources. In approaching this challenge, we analyze a range of choices. Depending on your company's culture, you may consider any or all of the following:

• working nights and weekends

• creating and hiring a new position

• outsourcing a function or large project

• directly contracting with an independent professional colleague: Outsourced professional employee

Problem Analysis

Many times each day you reach a decision point and choose which priorities get your time and attention. Accepting added accountability in your HR department and thriving with your ever-growing workload require detailed analysis of your decision points.

Working nights and weekends

Every HR professional worth his or her paycheck is pressed for time. Workweeks ranging from 55 to 60 hours are commonplace. You've determined that you're already working smart and hard to keep current with the business's needs. Your human resource career has transitioned from a hands-on tactical position to holding down a strategic role in the HR department. As the competition for capital intensifies, how will your decision to outsource translate to your company's bottom line?

Creating and hiring a new position

G & A cutbacks mean that there's no budget for new hires this year. The term hiring freeze has made a comeback after nearly a decade in hibernation. You no longer fill vacancies as they occur, and this trend may continue for the near future. In fact, you quite possibly severed someone with whom you worked closely. How will you provide greater results with less?

Outsourcing a function or large project

Speak to ten companies, and ten HR managers will define outsourcing differently. Small- or medium-size firms frequently use single-source outsourcing for operations such as payroll or benefits. Fortune 500 firms have moved toward outsourcing all transactional and tactical practices. Seven-, eight- and nine-figure contracts in the form of comprehensive solutions have increased dramatically over recent years. Once set into motion, Fortune 500 outsourcing agreements often have a shelf life of five or more years. The definitions employers use to quantify successful outsourcing depend on the goals and objectives outlined at the onset of each engagement-and they vary widely. How will you determine if and when outsourcing meets your needs?

Directly contracting with an independent professional colleague: Outsourced professional employee

Today's economy challenges HR professionals to demonstrate their advocacy of responsible stewardship. Historically, the personnel agency evolved as the American franchise economy grew from the 1950s. By the 1970s, franchise usage expanded-from food to cars to personnel. The decade of the 1990s required the franchise and boutique staffing agencies to invest heavily in technology or sink in the mud.

The novel Ivanhoe characterized soldiers who offered their lances to any king as free lances. Today's e-commerce and growing media technologies, wireless Internet with DSL, and effective corporate Web sites with e-mail together provide the daily tools used by the modern entrepreneur. A solution with both strategic and visionary applications is to identify and formulate direct relationships with independent HR professionals. How can you partner and leverage these tools immediately?

With research, you can determine the outsourced professional employee who is a solution in search of problems. A July 2003 survey by Consultive Source asked human resource professionals to rank the importance of the following three vision & values competencies held by HR vendors:

• MEASURABLE RESULTS - Delivery of solutions by the alignment of HR mission, vision and strategy

• CONSULTIVE - Solving problems with hands-on industry experience, creating a strategic alliance significantly stronger than a typical vendor/supplier relationship

• HUMAN RESOURCE LEADERSHIP - The blending of business savvy, leadership, facilitation/coaching, strategic perspective, conceptual thinking, internal consulting and the tangible perspective of human resources within the organization

The survey listed MEASURABLE RESULTS at the top, with 77 percent of the vote. CONSULTIVE SKILLS and HUMAN RESOURCE LEADERSHIP tied for second place.

Any freelance outsourced professional employee may prescribe to this and should prioritize their skill set accordingly. Concerns about the outsourced professional employee's abilities, stability and results can resolve themselves by taking a "test drive."

Similar to your auto mechanic and electrician, you expect consistent service from those you know and trust. The traits exhibited by every outsourced professional employee must include high quality service, fair prices and deadlines met as needed to name just a few.

The right outsourced professional employee at a fair and competitive rate will provide innovation in education, strategy, technical resources and skills. Choosing to outsource and manage this partnership and process successfully will enable you to protect corporate capitol and shareholder value. Which technology applications or transactional differences describe your vendors as a strategic partner of choice?

John T. Mooney 2003 All Rights Reserved

About The Author

Focused exclusively on EMPLOYEE RELATIONS, HR COMMUNICATIONS and RECRUITMENT PROJECTS contact John Mooney at (972) 355-7481 or email JMooney@ConsultiveSource.com or the company website www.ConsultiveSource.com.

I utilize extensive hands-on industry competencies to solve your HR challenges. Supporting small, medium or large human resource projects with 20 years of human resource and operating experience, John Mooney has a results-oriented, focused approach to the human resource needs.

---

The Dog That Didnt Bark

A few weeks ago, after consultations with others in an... Read More

The Three-category Approach to Performance Management: Effort, Ability, or Environment

Performance Management is the act of managing personal or organizational... Read More

What is Six Sigma?

Six Sigma is a highly disciplined process focused on satisfying... Read More

Proven Secrets to Keeping Your People and Increasing Your Profits

Why are people changing jobs so quickly these days?Here are... Read More

Four Employee Behaviors That Can Kill Your Business

I found it important to clarify for employees what "deal-breaker"... Read More

Money, Motivation, Success and Who?

It was 7:30 on a Saturday morning, and I was... Read More

Basic Management Skills

Recent studies have shown that industrial supervisors are working at... Read More

Collections Management

How long does it take your customers, clients or patients... Read More

How To Conduct Effective Meetings

Before you call your next meeting, the FIRST step is... Read More

Passion for Profits

Business owners and managers are busier than ever. As their... Read More

Influencing the Organisation

There is a saying about management that suggests some managers... Read More

Small Business Checking Accounts

ACCOUNTING AND BILLINGCHECK BOOKSWe recommend that you maintain a business... Read More

Innovation Management ? how does the user benefit?

Creativity can be defined as problem identification and idea generation... Read More

Are You Ready to Sell Your Business

Make Sure You Understand Your Motivation for SellingAre you thinking... Read More

Creativity Management and Behaviour

What behaviour maximises the chances of thinking of great ideas?... Read More

Teamwork Training: Learning to Build a Successful Team

Teamwork is a process that can be experienced outdoors and... Read More

Great Groups! - Getting a Group to Think Like a Genius

Great Groups! - Getting a Group to Think Like a... Read More

Virtual Assistance: A Money Saving Opportunity For Employers

What is a Virtual Assistant? A Virtual Assistant is a... Read More

Dialogue vs. Discussion

Have you ever sat in a meeting where everyone is... Read More

Looking through the Glass Ceiling - Women in Management

Women have made tremendous contributions to society at every level;... Read More

How to Meet Quality Standards with ISO 9001

In today's hectic business environment, it is vital that we... Read More

How to Create a Positive Work Atmosphere

Positive versus Negative WorkplacesWe have all worked in places where... Read More

How to Manage Your People Well: Tips for Managers of Training

As a training manager, there are two important aspects to... Read More

How Businesses Can Stop Wallowing in Bad Debt and Prevent It in the Future

"Become the Squeaky Wheel", a new book just published, explains... Read More

What Every Manager Should Know About How to Reduce the High Cost of Employee Absenteeism

Employers pay a high price for absenteeism, often more than... Read More

The High Cost of Employee Turnover Among Project Managers

Imagine for a moment this scenario from a frustrated Senior... Read More

How to Get the Best from Outsourcing

There's a great little article ('Business Lifeforms') on... Read More

5 Awesome Actions of Highly Creative Leaders!

How many times have you wondered why you are unable... Read More

Pitching to Employees

The senior flight attendant on the WestJet flight was starting... Read More

Organize your Office- Seven Solutions

1. Create a filing system with broad categories such as... Read More

Demise of the Lone Ranger Manager: A Lesson in Management Communication Style

When executives see themselves as solely responsible for the overall... Read More

Use Noncompete Agreements To Protect Your Business

Q: One of my former employees has launched an online... Read More

Why Businesses Need to Start Nurturing Collective Wisdom

COLLECTIVE WISDOM CAN BE AN effective tool for solving the... Read More