Support Staff Outsourcing in a developing economy

Esi savvy young Hamilton is the Director responsible for Human Resources and Administration in a mid-sized bank with 5 branches in Ghana. She manages a staff strength of 370 numbers by the management team for the domestic staff. Since joining the bank ten months ago, has made several innovations to transform the face of human resource management. Recently, attention has lent its effectiveness and its e-manage the cost of semi-skilled workers and low, which comprised 25% of its workforce with its consequent implications on the bottom line. Now, she is planning to outsource their services.

This is a bright morning. Esi has just finished 30 minutes of in-depth meeting with a consultant who spoke HR Outsourcing drafted into service support personnel outsourcing and the need for his bank to consider its semi-skilled workers and low outsourcing. He looked at the consultant left his expansive office, sipping her cappuccino and gently tapped his pen on his desk. He paused, looked at the small sunflower sitting on the top right corner of his desk and smiled. He turns slightly and began to work with your fingers on the keyboard tablet? What is truly Outsourcing Support Staff? And 'different from HR Outsourcing? What value has the support of staff Outsourcing add to my bottom line? My best organization without Outsourcing Support Staff? Why should I consider outsourcing staff support for my organization? Esi is mulling over these FAQs and requires an urgent response to help to develop a proposal for its General Manager for the bank to implement support staff outsourcing services to drive its human resources strategy.

Traditionally, Craumer (2000) hypothesized that the outsourcing that was originally perceived as a "ho-hum tactic for reducing the costs of back-room functions such as payroll and IT" became a critical management tool "in the early years' 90 as the company began to outsource more strategically important functions such as production and logistics, and even product design and other innovation-related activities. "

Support Staff Outsourcing (SSO), as a branch of outsourcing is defined as a management decision by which a client organization contracts out activities within its non-core functions to support an organization that experienced supplier will deploy its employees to perform these functions in the offices of the client company. There are three parties to the process of SSO is to say the client organization, Supplier organization of workers and outsourcing. These three parties play different but equally important roles in the success of SSO. SSO service fails in general and of its objectives in organizations faltered when one of the parties, in particular the staff outsourcing, it is actually cultivated within the scope of the Service Level Agreement between the enterprise customer and the provider organization.

In the SSO service, the client company takes off its non-core business. The provider organization sends to its employees qualified to discharge these functions non-core business operations the client organization. The extent of non-core business varies from company to company depending on its size, nature of business and market competitiveness. The non-core areas of coverage usually outsourced functions, such as secretaries, Guest Relations Officer, receptionists, administrative assistants, call center managers, officers, employees, postal franchise marketing, cleaning services, sales representatives, clerical duties, support IT officials, Drivers, delivery drivers, supervisors, and staff Tellering Tellering Bulk (in financial institutions), etc.

It is commonplace in developing countries to engage fully the services of personnel for non-core functions of organizations through the services and manufacturing sectors, because these functions are largely carried out with little or no automation. The percentage of engagement in the public service sector, which is the employer's oldest and largest labor is relatively high. Players in the service sector are challenged by the changes of globalization, technology and constant consumer preferences to deploy their capital to acquire resources (technological and process) in high-impact areas like IT, strategy and human resources essential for develop the capacity for organizational effectiveness. In this circumstance, less attention is given to non-core activities, and the managers of these non-core business support, HR or Admin are constantly under unbearable pressure to perform with little results to show for their efforts.

CEOs want results. They can not understand why their human resources and department directors are not performing and slowing the pace of work. Now, Admin and HR Managers should realize that their traditional role of providing administrative support services to the business or organization staff as a cost center exists in the realm of the past. Contemporary expectations that involve moving Admin or HR department to a more strategic role as a profit function of the organization of thought. These managers must now create new organizational skills drawn from a redefinition and redistribution of HR practices, functions and professionals that leverage the core competencies of their organizations. So, what should they do with their non-core operations? Strategic planning for a competitive market requires that these non-core functions are outsourced to organizations competent and reliable suppliers who have the basic skills to get results in non-core to the business customer.

Inadequate knowledge of HR Outsourcing has many professionals and service users to assume that both Support Staff Outsourcing HR Outsourcing (SSO) and vice versa. For the benefit of the doubt, HR Outsourcing is a set of outsourcing services covering Payroll Administration, Employee Benefits, HR Management, Risk Management and support staff. SSO is an integral part of the HR Outsourcing but not all. Non-core functions, which can be outsourced include the annual compilation Administration Payroll Leave / calculation, tax consulting / implementation, issuing payroll / distribution, employee benefits, etc. are the health, medical verification entities, Services canteen, Survey of employee satisfaction, etc. Human Resource Management includes the recruitment, hiring and firing, pre-hire background check and interview, exit interview, salary survey, planning, human resources and planning of the workflow. Risk management covers workers compensation, dispute resolution, health and safety and human resource policy manuals. SSO requires the use of support staff to perform non-core functions of the Assistant Executive Secretaries Driver and cleaning.

In another development, HR Outsourcing service is usually grouped into four categories on a large scale, ie, the PEOS BPOS, ASP, and e-services. PEO means the professional employer organization. BPO means Business Process Outsourcing. ASP stands for Application Service Provider and, of course, E-services. SSO in part because the organization PEOS provider has employees who band to perform non-core functions in the offices of the client organizations.

Client organizations that adopt and implement SSO service model in the services sector in all developing economies should expect a dividend in the quality of service delivery, reduced costs and increased productivity.

Provider organizations offer value for money. The quality of the provision of services is a critical aspect of performance measurement. The Service Level Agreement (SLA) explains the terms, conditions and expectations of the service and execution of both parties to the SLA are obliged to fulfill their commitments. Client organization is certain to experience an improvement in the context of its non-core service provision in terms of quality employees, delivery times and customer service. If a client is not an organization to enjoy this benefit, then the provider organization is incompetent. What has happened is that the client organization has successfully created levels of inefficiency in its structure and the operating cost of this inefficiency and its output adds to the goal of adoption and implementation of SSO.

A recent survey has revealed a universal bank that you could save 45% of costs (both direct and indirect), if it decided to outsource one aspect of its operational functions, which was handled internally by the core staff of the bank. A good 45%! What else can you haggle for every organization? Why pay more for a client organization headed right-and-where the management model non-core function can be outsourced to the value? In addition, the SSO service also has in-built ability to provide a cost-controlled future. The budget for the contract and administrative costs can be designed to circumvent inflation with room for growth in order to exactly determine future costs.

An organization can drive top-line performance, increase their operational efficiency and organizational skills if you are concentrating its resources on its core business. SSO service generates greater productivity for the client organization. The client organization focuses its ability to exploit and develop the potential of its employees in the converting the fundamental sources of competitive advantage that produce long-term benefits. In partnership, the provider organization deploys its skills base to support the client company to achieve its non-core business areas. SSO service provides hiring managers with the flexibility and innovation they need to lead their HR agenda to achieve an optimal degree of strategy execution and organizational effectiveness.

Some hiring managers claim that inconveniences of the SSO service far outweigh the benefits. There is merit in this argument? Can the quality of service rendered by employees who are not on the payroll of the organization on an ongoing client guaranteed? There will be no difference in remuneration and welfare of employees of both organizations in the SSO service model? Employees of the supplier can demonstrate sufficient loyalty or work ethic in tandem with the vision and mission of the client organization? Can the provider organization to continue to provide quality personnel for the client organization?

Can the provider organization vouch for the integrity and safety of its employees to manage information at the client's office? Will business customers enjoy a high level of commitment to quality service and exceptional customer care from the provider organization's employees? Employees will be distributed to the offices of organization provider of customer organizations well paid to avoid disruptive exit and defection to the competition? How commissions work and protection of human rights agencies interpret the tripartite relationship of the parties to SSO - the casualization of staff labor, exploitation, or contract? What are the legal consequences of the adoption of the model SSO? How does the vendor organization to manage the security issues regarding the client organization, giving employees access to sensitive information belonging to the first customers of the following? How does the provider organization to mitigate against the recruitment, nature and risks of competence of its employees prior to distribution and service, while the customer's organization?

A well structured and carefully implemented SSO service is designed to anticipate the objections identified as problems and meticulously to provide avenues to block them before consuming the service contract SSO, and during the period of execution of the service. HR Outsourcing consultants and lawyers specializing in outsourcing professional / business services should be undertaken to develop Service Level Agreements (SLA) to provide a platform for the determination of responsibility, accountability, results, performance metrics, exceptions and exit clauses . The decision to use SSO service is an investment. If the client gets it right organization and the organization that implements vendor in line with the SLA, which will result in higher performance and profitability substantially in terms of service delivery, customer retention and revenue generation.

SSO service works for any size organization. Any organization that has more than 20% of its workforce, as a support staff of unloading non-core activities should take into account the SSO. SSO service relief, HR managers and allow them to focus on more strategic issues such as the provider organization to see to the welfare and performance of its employees who perform non-core client organization.

It 's time to outsource the support staff when the HR manager is inefficient because it is burdened with administrative tasks of personnel management. It 's time to outsource functions to support staff when the service is poor and the cost of leasing and maintenance staff is high. The only loss is the client organization's point of inefficiency. Shareholders, investors and CEOs want value for money investment in human resources. SSO service model offers this value.

Hamilton Esi was typed on the keyboard for the last two hours. She looks up from his tablet and stretched. All times are 1215 hours. "Oh, Kofi!" It 's time for lunch. It has a lunch date with her husband, Kofi Hamilton an investment banker who works across the street and she does not want to miss this event. He would e-mail the report submitted to its CEO, when she returns from her lunch. He closes his tablet, picks up her bag and sprint over the secretary, his words "I'm going to lunch" echoed behind her....