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New EmploymentPractices
Dr. Tanusree Chakraborty
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Outsourcing
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What is Outsourcing?
Outsourcing - the strategic use of outside resources to
perform activities traditionally handled
by internal staff and resourcesDave Griffiths
Why Outsource? Provide services that are scalable,
secure, and efficient, while improvingoverall service and reducing costs
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Why do Companies Outsource?
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Reasons for Outsourcing
Traditional role - reaction to problem
Reduction and control of costs
Avoid large capital investment costs Insufficient resources available
Modern role business strategy
Allows company to focus on their corecompetencies
Keeping up with cutting-edge technology
Creating value for the organization and itscustomers
Building partnerships
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What Can be Outsourced?
system integration
data network
mainframe data center voice network, internet/intranet
maintenance/repair
applications development
e-commerce end-user support system
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How to Implement Outsourcing
Program initiation Opinions and ideas shared to form draft
contract
Program implementation Transferring staff Service Level Agreement (SLA) Establish communications between
partners Actual transfer of the service Establish management procedures
Contract agreement
Contract fulfillment
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HR Outsourcing Services
Online HR software solutions
Employee self service
Screening and assessing of employees
Providing employee performance reviews
Providing benefit administration for employees
Preparing health and safety programs for employees
Maintaining files of personnel
Developing and managing HR forms
Unemployment claims management services Preparing and updating employee handbooks,
workplace policies and procedures
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Problems With Outsourcing
Loss of Control
Increased cash outflow
Confidentiality and security
Selection of supplier
Too dependent on serviceprovider
Loss of staff or moralproblems
Time consuming Provider may not understand
business environment
Provider slow to react tochanges in strategy
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Problems With Outsourcing
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Contingent Workforce
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Contingent Workforce
A contingent workforce is a provisional group ofworkers who work for an organization on a non-permanent basis, also known as freelancers,independent professionals, temporary contractworkers, independent contractors or consultants
Contingent Workforce Management (CWM) is thestrategic approach to managing an organization'scontingent workforce in a way that it reduces thecompany's cost in the management of contingent
employees and mitigates the company's risk inemploying them.[
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Advantages and Disadvantages of usingContingent Workers
Flexibility in type andamount of laborresources
Save costs in benefits
and tax Immediate access to
expertise not presentinternally
Savings in long-term
compensation costs
Loyalty toemployer orcompany
Disturbsorganizations coremorale and culture
Training costs
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Contingent Workforce Outsourcing(CWO)
Contingent Workforce Outsourcing (CWO)denotes a provider who facilitates clients'ability to aggregate and track spending, billing,and performance of more than one type of
non-W-2 worker.
This includes traditional temps andindependent contractors and consultants.
http://en.wikipedia.org/wiki/Form_W-2http://en.wikipedia.org/wiki/Form_W-2http://en.wikipedia.org/wiki/Form_W-2http://en.wikipedia.org/wiki/Form_W-28/3/2019 Outsourcing Topic 10
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A World In Flux
Technological Development Manufacturing
Transportation
Communication Mobility Of production
Of labour
Centralised / Disaggregated production
Access to multiple, diverse HR Pools
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A World In Flux issues and implications
Economic and Social Trends / Shifts
Sector and Industry shrinkage or expansion
Tourism, Energy, Agriculture
Pandemics
HIV/AIDS
Socio-Political developments
CSME, PetroCaribe, FTAA Shifts in career expectations, relationships
and options
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A World In Flux issues and implications
The psychological contract The death of womb to tomb and cradle to
grave
Relationships of convenience? Personal responsibility for benefits
Flexibility and loyalty To self?
To organisations?
To principles and professional standards?
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A World In Flux issues and implications
Pervasiveness and Speed of Change
Competition
Response times
The need to be nimble and agile
Rapid access to specific skills for limitedtime periods
Minimising long-term structural andfinancial commitments
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Responding to flux !!
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The Contingent WorkforceResponse
Hidden Workforce of temporary workers, independentcontractors, consultants, leased executives, project-based resources
Temporary worker arrangements driven by:
Seasonal / Periodic fluctuations or demands
Filling of temporary vacancies
Specific tasks of limited duration
Flexibility needs (worker and organisational)
Perceived cost savings
Reduction in obligations
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Managing A Contingent Workforce
Clarity on Company Purpose and Policy
Appropriate use of contingent workforce
Optimal Mix of Contingent to Permanent
Variability / Equity in treatment
Social Responsibility
Regional, National and Sector Development
Gender and Minority Issues
Education Inputs
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Managing A Contingent Workforce
Legal Issues / Litigation / Liability
Workers Rights and Representation
Compensation and Benefits
Company Culture, Values and Brand
Organisational Integrity and Reputation
Attracting quality Human Resources
Standards, Quality and Consistency
Cost vs Benefit
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Managing A Contingent Workforce
Ownership of the Process
HR or shared
Organisational Politics
Costs Loyalty and Commitment
Turnover
Training
Intellectual Property and Security
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On The Ground Issues!!
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Managing A Contingent Workforce Operational HR Issues (1)
Sourcing
Who is responsible? Procurement? HR? Agency?
Does this vary according to the category?
Access to and Cost of labour resources
Placement
Organisational conversations / collaboration
Orientation and Integration
HR Dept. vs Managerial and Staff Roles
Teamwork
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Managing A Contingent Workforce Operational HR Issues (2)
Multiple-category contingent workforce
Issues of (perceived) Equity or Inequity
Impact on workforce
Management Techniques
Standards, Performance Evaluation and Appraisal
Contractual or Developmental?
Retaining knowledge capital of contingent workforce
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Employee Leasing
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Employee Leasing
Arrangement in which a firm (called subscribingfirm) transfers its employees to another firm (calledleasing firm) which specializes inhuman resourcemanagement, payrollaccounting, and riskadministration. The subscribing firm leases its
employees backas employees of the leasing firmand usually pays more for their services than theirsalaries at the time of transfer. This way the payrolland associatedexpenses and taxes ofthe leasedemployees become the leasing firm'sliabilities.
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Employee Leasing
Employee leasing is a business agreement inwhich a company has a professionalemployment organization (PEO) put itsemployees on the PEOs payroll and leases theemployees back to the company.
The act of outsourcing the human resourcesand payroll tasks from one company toanother.
This is done on the current and permanentemployees of a company.
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Why Use Employee Leasing?
ZERO liability of having employees No insurance hikes when accident occur No more need to worry about government issues (tax,
most paperwork, etc.) Stable medical benefits (if you choose) Save time, make money Sometimes employees feel as if they dont belong to
YOUR company Client is highly dependent on the PEO for their
employees
http://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQhttp://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQ8/3/2019 Outsourcing Topic 10
31/31
Thank You
http://www.google.com/url?ct=abg&q=https://www.google.com/adsense/support/bin/request.py%3Fcontact%3Dabg_afc%26url%3Dhttp://www.businessdictionary.com/definition/employee-leasing.html%26hl%3Den%26client%3Dca-pub-2929677839778239%26adU%3DMyAdrenalin.com%26adT%3DAutomate%2Byour%2BHR%2BWork%26gl%3DIN&usg=AFQjCNHpquMoC-Rv-SqniUhD54WtQ9CXZQ