As the economic downturn affecting many global organisations
shows little sign of coming to an end, managing your greatest
asset, your employees, is possibly more important now than ever
before. Some of the challenges facing the HR executive are:
a) the pressure to increase shareholder value forcing HR to
better manage costs;
b) the rapid changes in technology and lack of skilled IT
resources are resulting in organisations considering external HRIS
options; and
c) the growing need for meaningful management information,
both enterprise wide and by specific group or business
unit.
The result is that HR has to reinvent it's service delivery
measures in order to get the most from employees when resources are
scarce, deal with the uncertainties the future holds, and find
innovative ways to ease the demands that the HR executive is
facing. Outsourcing could be seen as one of the potential
solutions.
One can hardly imagine a company today that does not outsource
some aspect of it's HR function, even if it is only the fund
management of it's pension scheme. The objective of
outsourcing (generally) is to free up the internal resources so
that HR can concentrate on strategic issues important for the
overall wellbeing of the company. Often organisations hire
unsuitably qualified individuals, due to the lack of skills, to
perform this critical function. This results in senior
managers spending inordinate amounts of time trying to maintain
control, taking valuable time from the more strategic issues they
should be addressing. Managing a payroll is a highly skilled
profession. The skills that are required but which may not be
available internally, are the driving factor for many HR
organisations to outsource.
As a rule, HR outsourced service providers deliver the
management of transaction-orientated functions such as
payroll. However, outsourcing does not have to be limited; an
improved total HR service which is strategically focused and
aligned with the organisation which delivers tangible bottom line
results should drive the decision to outsource, with not only the
extent of savings being considered. The challenge is to find a
total outsourced solution that will ensure a high quality service
and free up the time of your HR and Finance executives, which at
the same time provides them with the critical management
information they require.
So why outsource?
|
Reason
|
%
|
|
To save money and reduce operating costs
|
56%
|
|
Control legal risk / improve compliance
|
55%
|
|
Gain access to vendor talent / expertise
|
47%
|
|
Streamline HR functions
|
45%
|
|
Offers services organisation could not otherwise
|
44%
|
|
Allow company to focus on core business
|
42%
|
|
Reduce number of HR staff and expenses
|
41%
|
|
Provide consistent/improve service delivery
|
41%
|
|
Allow HR staff to focus more on strategy
|
33%
|
Source - SHRM Outsourcing Survey 2004
What could go wrong?
- Poor design and implementation
- Lack of emphasis on change management and communications
- Lack of client resources for transition
- Lack of capability in the client organisation - they have not
done it before
- Unclear approval and decision making process
- Under-utilisation of third-party experts
- Too much emphasis on short-term goals
The key to outsourcing is the development of successful, long
term partnerships between the outsourcing provider and
end-user. The outsource specialist can take responsibility
for some of the non-core functions of the business, releasing the
HR executive to concentrate on other areas on expertise which are
of more direct benefit to the business and bottom line.
At Educos Vision Services we develop, implement and outsource
our products and services to companies both in South Africa and
internationally. Our solutions have evolved over the past 25
years and offer our clients a fully integrated, flexible and
totally customisable solution for managing all aspects of HR and
Payroll management, including a total outsourced
solution. We take a slightly different approach to
"off-the-shelf" solutions, and tailor our solutions to your needs
to provide the flexibility and process automation that is required
to run your business more efficiently. Our solutions
are able to integrate with any other third party software, and part
of our implementation strategy is to define what system integration
would be required and include this as part of your total
solution.
Our highly talented developers, business analysts, specialists
and consultants assist organisations with evaluating the
complexities associated with managing Human Resources and Payroll
efficiently and effectively, demonstrating how vital it has become
to have a comprehensive service addressing both the management of
processes and information.
With our experience in providing service excellence for 25 years
have absolute confidence that our solutions will add value to your
organisation.