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.

---

Resolve Differences

Resolving conflict doesn't come easily to too many people. Most of us want harmonious relationships and smooth interpersonal interactions. However, we know that disagreements and conflicts are... Read More

Reprimanding Marginal Employees

THE MARGINAL PERFORMER: Every manager must, from time to time, deal with a marginal performer - an employee whose work, for the most part, is satisfactory, but... Read More

Why You Need a Business Plan

This article was originally called "Do You Need a Business Plan?"The title was changed because in truth, every business needs a business plan. It's a common misconception... Read More

Sarbanes-Oxley and Section 404: Old Dog, New Teeth

The failures we have seen in the quality and integrity of financial reporting in corporate America are clear evidence that something was awry. It is the responsibility... Read More

6 Steps to Effective Communication

Effective leaders are known for being excellent communicators. Here's what to do.1) Avoid "Not." Negative talk encourages arguments, counter attacks, and attempts to solve your problems. It... Read More

Change Management: Getting Everyone on Board the Change Train

How do you get everyone on board the change train that is gaining speed and heading out of the station? How do you get your people to,... Read More

The 5 Things Great Managers Sense about their People, Every Day

Using all of your senses, to help you test how your people are feeling in your business, is a learned skill. Once you start to use it,... Read More

Develop Your People and Make More Money

What is the no. 1 asset in your business beside yourself? It's your people.Then why is it they often fall to the bottom of the list when... Read More

Counseling Interviews for the Marginal Employee

ACTIVE LISTENING: The most frequent cause of failure in therapeutic counseling interviews is the interviewer's tendency to talk too much. Numerous studies have shown that in counseling... Read More

5 Interviewing Mistakes That Can Lead To Hiring The Wrong Person

Mistake #1: Going with the flowInexperienced interviewers sometimes fall into the trap of letting the interview become "free form", spending different amounts of time on different questions,... Read More

Balance Your Managerial Life

We have only one life, but we live in three overlapping worlds-our business world, our family world, and our other social world. Imagine bringing your spouse and... Read More

A Sense of Humor in the Workplace ... Is it Me? Or, was that not funny?

When I was first initiated into Corporate America, I had a sense of humor that went unmatched by any mortal soul. I was quick-witted, smart, sharp, and... Read More

Ten Top Ways for Managers to Motivate Their People

So to help start the ball rolling, here are ten top ways to get your people motivated. Ten small steps for you to start with. Recognise themRecognise... Read More

9 Tips for Getting the Most From Your Conference Investment

Tips for Getting the Most From Your Conference Investment All professionals attend conferences, seminars, and trade shows each year. Through my observation and person experience here are... Read More

The Three-Dimensional Communication System

Human communication is always three-dimensional. No spoken or written message is ever just words or rational thoughts. Every interchange between you and another person has and takes... Read More

Critical Success Factors - Next

The Critical Success Factors Focusing on the things that make the biggest difference to your future prosperity. (Note, although this article was written... Read More

Choosing the Right Corporate Training

According to a Gallup Poll, 80 percent of employees said the availability of company-sponsored training programs was a factor in deciding whether to accept a new job... Read More

The DNA of Motivation

It really is about motivation. After all, what impels someone to climb a mountain, or go to college, or save for a car, or learn a new... Read More

Five Key Strategies for Making Your Nonprofit Business More Effective

I love tennis both as a spectator and a weekend player. I also believe that effective nonprofit organizations are an essential part of vibrant, engaged... Read More

Managing After Downsizing

So, you survived the downsizing. Your company did something that will probably show minimal, if any, return -- and will make your job as a manager a... Read More

Its All In The Systems

Have you ever noticed french fries taste the same at every McDonald's? The same can be said for Subway and its Italian BMT. How do these fast... Read More

Goodwill is an Intangible Asset

'Goodwill' is regarded as an intangible asset in a business. Goodwill carries a value over and above the tangible assets of a business, and representing all benefits... Read More

Tales From the Corporate Frontlines: An Unexpected Benefit

This article relates to the Compensation and Benefits competency, commonly evaluated in employee satisfaction surveys. It tells the story of a company that offered a new benefit... Read More

How to Dodge Distribution Difficulties

It happened again. I ran into an old friend while registering for the World Masters Games last month and as we were catching up, she complemented me... Read More

Take the Easy Route - Delegate

It was 2.30 am. It was cold and dark and I'd been in bed for just a half hour when the phone rang."Alarm Centre here, are you... Read More

Plan for Business Success - 6 Reasons to Succession Plan

Succession Planning provides many valuable assets to your business. Yet it is easy to do, with a game plan. Here are some reasons why the business leader... Read More