Human Resource (HR) function in organisations is complex.
Unlike other key functions like Production or Marketing, this complexity makes HR function appear as a spender rather than an earner.
Modern-day workplace needs creative relationship management of its people and that is what it is taking care of.
Just as organisations use the outsourcing route to improve effectiveness in production, finance or marketing, HR too is a function that can benefit from outsourcing.
Some such areas are as given below.
1.
Behavioural and soft skills training: The purpose of training is to generate awareness and experience among the participants in the prevailing / changing organisational environment.
Behavioural and soft-skills training (especially when it is made experiential) have great potentials to enhance strategic business results.
External training agencies often have training methodologies that are different from the traditional ones because with their experience, they know that the vintage approach towards training does not suit the changing work environment and employee attitudes.
Also, they bring in variety and break monotony.
2.
Organisational structuring / re-structuring: Periodic review and re-alignment of the organisational structure have become a significant requirement in the strategic alignment of HR services in organisations.
The advantage of an external agency helping in it is that it will smoothen the change management process because if it comes from outside, there will be lesser resistance.
The services in this area may include: a.
Preparing / revising organograms at the levels of the entire organisation, departments, projects, locations etc.
b.
Preparing / revising job descriptions and aligning them to make more productive / effective c.
Preparing / modifying organisational policies / procedures manual d.
Hand-holding in implementation of the changes 3.
Strategic HR and Organisational Development (OD) services: This can include the following: a.
Helping in leadership and team-work development b.
Helping in developing strategic management skills in key managers c.
Strategic alignment of employee attitudes towards the overall business goals of the organisation 4.
Organisational surveys: Organisational surveys are one of the best tools for assessing organisational health and change needs.
The findings and recommendations of the surveys many agencies conduct will help the decision makers in the organisation in taking corrective measures on areas of concern.
5.
Psychology-based organisational services: many agencies have fine teams of organisational psychologists.
They can provide services in this area as under: a.
Psychometric testing at the time of recruitment b.
Psychometric testing at the time of performance appraisal c.
Psychometric testing for internal selection / promotions d.
Psychological counselling / mentoring of employees in group or as individuals 6.
Performance management: Most organisations have performance systems in place.
But, an improvement in it may bring about improvements in employee performance.
External agencies can help organisations as under in this area: a.
Setting up / fine tuning the existing one into professional performance management system (PMS) b.
Designing / improving performance appraisal system c.
Designing of performance appraisal forms / methods 7.
Assessment Centers: Leadership is a crucial factor in any organisation.
Even the best assessment of employee performance and effectiveness can end up getting driven by whims and fancies.
An assessment through a neutral external Assessment Center, especially for the purpose of filling up crucial positions through internal selections, can make a difference in avoiding square pegs reaching round holes.
8.
Outsourced HR support services: In this, agencies take up most of the day-to-day HR activities of workplaces as an external service-provider, on outsourcing basis.
This will spare the HR talents in the organisations which can be unleashed to meet other strategic HR needs.
9.
Recruitment and related services: An analysis of the time, resources and efforts put in by HR people and the results in recruitment internally vis-a-vis having it done by an external agency, will reveal the fact that in most cases, recruitment through agencies offers variety, quality and cost effectiveness.
Outsourcing HR activities can put organisations at an advantageous position.
The HR service providers from outside can become partners in progress in business.
Yet many traditional organisations and their inadequately empowered HR managers hesitate in availing of this advantage.
However, many instances of mutually beneficial relationships between external HR service providers and the organisation's HR function do exist, making them mutually advantageous.
Unlike other key functions like Production or Marketing, this complexity makes HR function appear as a spender rather than an earner.
Modern-day workplace needs creative relationship management of its people and that is what it is taking care of.
Just as organisations use the outsourcing route to improve effectiveness in production, finance or marketing, HR too is a function that can benefit from outsourcing.
Some such areas are as given below.
1.
Behavioural and soft skills training: The purpose of training is to generate awareness and experience among the participants in the prevailing / changing organisational environment.
Behavioural and soft-skills training (especially when it is made experiential) have great potentials to enhance strategic business results.
External training agencies often have training methodologies that are different from the traditional ones because with their experience, they know that the vintage approach towards training does not suit the changing work environment and employee attitudes.
Also, they bring in variety and break monotony.
2.
Organisational structuring / re-structuring: Periodic review and re-alignment of the organisational structure have become a significant requirement in the strategic alignment of HR services in organisations.
The advantage of an external agency helping in it is that it will smoothen the change management process because if it comes from outside, there will be lesser resistance.
The services in this area may include: a.
Preparing / revising organograms at the levels of the entire organisation, departments, projects, locations etc.
b.
Preparing / revising job descriptions and aligning them to make more productive / effective c.
Preparing / modifying organisational policies / procedures manual d.
Hand-holding in implementation of the changes 3.
Strategic HR and Organisational Development (OD) services: This can include the following: a.
Helping in leadership and team-work development b.
Helping in developing strategic management skills in key managers c.
Strategic alignment of employee attitudes towards the overall business goals of the organisation 4.
Organisational surveys: Organisational surveys are one of the best tools for assessing organisational health and change needs.
The findings and recommendations of the surveys many agencies conduct will help the decision makers in the organisation in taking corrective measures on areas of concern.
5.
Psychology-based organisational services: many agencies have fine teams of organisational psychologists.
They can provide services in this area as under: a.
Psychometric testing at the time of recruitment b.
Psychometric testing at the time of performance appraisal c.
Psychometric testing for internal selection / promotions d.
Psychological counselling / mentoring of employees in group or as individuals 6.
Performance management: Most organisations have performance systems in place.
But, an improvement in it may bring about improvements in employee performance.
External agencies can help organisations as under in this area: a.
Setting up / fine tuning the existing one into professional performance management system (PMS) b.
Designing / improving performance appraisal system c.
Designing of performance appraisal forms / methods 7.
Assessment Centers: Leadership is a crucial factor in any organisation.
Even the best assessment of employee performance and effectiveness can end up getting driven by whims and fancies.
An assessment through a neutral external Assessment Center, especially for the purpose of filling up crucial positions through internal selections, can make a difference in avoiding square pegs reaching round holes.
8.
Outsourced HR support services: In this, agencies take up most of the day-to-day HR activities of workplaces as an external service-provider, on outsourcing basis.
This will spare the HR talents in the organisations which can be unleashed to meet other strategic HR needs.
9.
Recruitment and related services: An analysis of the time, resources and efforts put in by HR people and the results in recruitment internally vis-a-vis having it done by an external agency, will reveal the fact that in most cases, recruitment through agencies offers variety, quality and cost effectiveness.
Outsourcing HR activities can put organisations at an advantageous position.
The HR service providers from outside can become partners in progress in business.
Yet many traditional organisations and their inadequately empowered HR managers hesitate in availing of this advantage.
However, many instances of mutually beneficial relationships between external HR service providers and the organisation's HR function do exist, making them mutually advantageous.