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HR Outsourcing- Some Basics
Human Resources » HR Outsourcing

Chrm Message From: madure Total Posts: 278 Join Date: 06/06/2006
Rank: Coach Post Date: 16/07/2006 18:30:52 Points: 1440 Location: Sri Lanka
Outsourcing can help executives make quicker better informed decisions, open up new sources of revenue, and free them of the day-to-day back office tasks to focus on core competencies. But how can outsourcing be a win-win situation for employees who's jobs and lives are now impacted? Underestimating the effect of employee resistance can seriously decrease the return on investment in the whole initiative.

In today's world of business, major organizational change is inevitable. A proactive instead of reactive approach can mean the difference between success and failure. As outsourcing is being used more and more as the tool to effectively manage that change, so grows the fear and insecurity employees often feel when they even hear the word outsourcing. How can employee resistance effect the transition?

Employees in fear losing current positions, or of having to learn new skills will often impede the transfer of important knowledge or simply become less productive. Management must therefore be aware of the potential pitfalls and plan for the transition.

A seasoned outsourcing service provider understands the risks as well as the benefits of implementing HRO into a company's existing corporate culture.

Critical Success Factors

Understand your company's culture.
Recognize that your employees are stakeholders. There knowledge and skills are vital to your companys' success.
Mobilize department leaders to develop a plan of onging communication with employees; their lives will be impacted during the initial stages of the outsourcing transformation.
Ensure adequate transfer of employee knowledge.
Consider how corporate objectives may conflict with employee interests.
Eliminate the risk of inadequate resources.
Plan for ongoing change.

Organizational change is happening all of the time. All organizations at one time or another have had to change their activities. This could mean redesigning the structure of an organizations, the transfer of work assignments, the introduction of new products, services, technologies, systems or changing the behaviors of individuals in an organization. Meeting the challenge for organizational change is critical for businesses, governments and educational institutions in the 21st century.

Chrm Message From: debora Total Posts: 90 Join Date: 06/06/2006  
Rank: Manager Post Date: 23/07/2019 12:32:40 Points: 350 Location: Sri Lanka

 Human resource outsourcing (HRO) occurs when a business instructs an external supplier to take responsibility (and risk) for HR functions and perform these tasks for the business. Payroll outsourcing is commonly outsourced for two reasons: it’s a time-consuming administrative task for employers, and there are many specialist companies with the technology and knowledge to run it efficiently and compliantly. There are many ways in which outsourcing human resources can be done:

· Business process HR outsourcing (also known as BPO), where an external supplier manages discrete HR activities, such as payroll administration or recruitment, or perhaps the whole human resources function.

· Shared service HR outsourcing, where only the transaction or administrative elements of HR’s activities are subcontracted to an external supplier. This may include the personal interface with employees.

Application (and facilities) service HR outsourcing, where external providers look after the technological (and physical) infrastructure to support human resources activities.

Outsourcing human resources or some of its processes to an external provider is a major business decision as, while it may be cost-effective, it introduces new elements of risk, including:

1.  Loss of control

2.  Impact on the employer/employee relationship

3.  Loss of flexibility

4.  Failure to deliver cost benefits

5.  Legal or regulatory requirements

6.  Industrial relations issues

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