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.