What is outsourcing?

Why is it important?
How can it benefit your company?
How can you go about securing outsourcing services?

What is outsourcing?
Outsourcing can be simply defined as the contracting out of the management or supply or production of an aspect of your business to other firms to enable you can focus on the core aspects of your business.

The common types of outsourcing we have are; Security Services, Staff Medical Services, Cleaning Services, Driver Services and Staff Management Services.

For the purpose of this write-up I am focusing on Staff Management Service Outsourcing; which is the outsourcing of the management of part or all of a company’s staff affairs.

Why is it Important for companies to consider it?
Majority of companies are designed or set up for manufacturing or/and services, but not designed to manage staff affairs. Companies are increasingly practicing lean manufacturing, looking for ways to be more efficient in their production practice and improving the profit margin by reducing wastages. Therefore companies may prefer to focus on their core business while they contract a Human Resource firm to manage all or a section of their staff affairs.
Some of these Staff Affairs Include; Recruitment, Learning & Development, Health & Safety, Legal & Staff Policy formulations, Staff welfare, Payroll administration, and Staff performance management.
Managing this gamut of staff issues takes much effort, time and money constituting a distraction for some companies thus their decision to outsource staff management to professional HR outsource agencies.

How can Staff Outsourcing benefit your organization?

  • Better expertise in handling staff matters thus leading to batter quality of staff output.
  • Better focus on activities directly related to profitability
  • Reduction in the incidence of downtime due to staff dismissal or disengagement
  • Reduction in the risk of litigation arising from poor employee management
  • Reduction in the wastage of resources due to bad recruitment

What to look out for in choosing an outsourcing service agent?

  • Licensed to operate as a HR firm: Before you enter a legal agreement with a HR firm, it is always good to verify if they are legally allowed to operate as such.
  • Experienced in outsourcing jobs: before making you may also want to consider if the prospective HR agencies have got some experience in managing outsourcing services for other organizations.
  • Proximity and accessibility: No matter what you think about managing people, no approach beats physically monitoring work done. Therefore proximity and accessibility of Agents to staff work stations is essential element in choosing an outsourcing agency.
  • Professionalism: the biggest challenge in staffing, is vacancy management, good vacancy management will limit downtime. Therefore, to choose the best outsourcing firms, you may need to know if they possess competences in staff recruitment.

In conclusion:
It’s a critical decision to productivity when thinking about Staff Outsourcing, but once that decision has been made, the company may need to work in partnership with the agency in order to get the best out of the process. 

What can you say about outsourcing? Any benefit to you?

Written By: Daniel Iyoha-Ojie


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