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.

---

Understanding How Change Has Changed

There seems to be an assumption that change is a... Read More

Déjà Vu MCI to Qwest International Inc: Can this Corporate Marriage Survive?

Current Situation:As of this writing, the MCI Board of Governors... Read More

Customer Focus - Just 5 SimpleThings You Need to Think About

You can boil down the difference between successful businesses and... Read More

How to Approach Group Decision Making

GROUP DECISION MAKING -- IDENTIFY THE PROBLEM: Tell specifically what... Read More

Five Steps to Increase the People Power in Your Business

Take some bold steps and help your employees and business... Read More

Organizational Techniques - Tickler and Chron File

One of the biggest problems we encounter in our consulting... Read More

Performance Evaluations Can Be Beneficial

THE PERFORMANCE REVIEW MEETING: It's a fact - most supervisors... Read More

The Walmart Cult

The CultBecoming a part of the Cult, consists of being... Read More

Dont Get Caught With Your PR Down

Why risk the embarassment when with a little basic PR... Read More

Crisis Management Tips

The term crisis management has different connotations. In this article,... Read More

MANAGING CRISIS; when you?re too good at it

When you are acclaimed for excellence during times of crisis... Read More

Towards Intercultural Understanding

An individual's ability to forge effective relationships across cultures is... Read More

Effective Meetings Begin With a Real Agenda

Everyone knows that an agenda is the key to an... Read More

Humor in Business

With the advancement of computer simulators, anybody can repeat all... Read More

Multiple Channels, Multiple Times

I've just been reading about the frustrations of a Human... Read More

Romford Accountants: Accountancy Firm Roles and Responsibilities

If you own or operate a business in the UK,... Read More

Selecting a Business Broker or Intermediary to Help You Sell Your Business

As crazy as it seems, some people spend more time... Read More

Forget The Sandwich Technique

Do you remember being told to use the "sandwich" technique... Read More

Creativity and Innovation Management: Goal Setting

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

Firing Someone Without Resentment

Firing, sacking, letting go or terminating people is unpleasant. There... Read More

Three Business Lessons From The US Postal Service

There was a buzz in the air recently about the... Read More

Will a Workplace Bully Bankrupt Your Company?

Safeguard Your Company Against Harrassment ClaimsTwenty-five percent of employees suffer... Read More

Its Not Always What You Say

A major source of communication breakdowns is incongruence between the... Read More

Management Team Section of Business Plans

Writing an award winning business plan is a great skill,... Read More

Creating Your Own Business Upturn - Powering Business Development

We all see it . . . business markets are... Read More

Tales from the Corporate Frontlines: Senior Management and Directional Change

This article relates to the Senior/Top Level management of an... Read More

Business Fails When We Do Not Talk

You may remember being told as a child, "Keep quiet!"... Read More

30 Ways to be a Butt-Head Boss

1. Trust no one. Not your superiors and not your... Read More

Negative Self-talk is Too Expensive

I'm always fascinated by the people who lift huge weights,... Read More

Christmas and Business Gifts for Your Clients and Employees!

Tis' the season for business and corporate gift-giving! If you... Read More

Creativity Management - The Value of Being Prolific

When asked his secret to success, the author Graham Green... Read More

Managing Employees Is A Little Like Herding Cats

Q: I started my small business about a year ago... Read More

Top Ten Tips About People Management

To get the best results you have to be very... Read More