Benchmarks set in the corporate world always take just one trajectory – upwards. Every department, each individual working in a successful business is expected to give its employer maxi return on investment. And it’s not just the human resources, but other physical and digital resources that must continually add great value to the company that owns them. But any business owner who thinks that getting the best out of every single resource that belongs to the company is even remotely possible is living and fairyland. Pardon the sarcasm but that’s the harsh truth. Even the best management can’t be best enough to make sure all its resources perform most optimally, at all times. There are slips ups, performance drops, lack of time or resource management that mars most businesses, particularly when they solely rely on internal staff and resources for business goal they wish to achieve. And that’s where outsourcing service providers prove to be the saviours.
In today’s business landscape, outsourcing is done for nearly all business functions. Whether it’s physical assets or human resource, an increasing number of businesses are partnering outsourcing service providers to supply them with reliable systems and talented human resource. Temp staffing and permanent staffing are the two offsets of this growing trend.
There is enough documented and undocumented evidence to suggest that the traditional means of hiring and employing workers is a practice fraught with inefficiencies and resource wasting, not to mention, cumbersome. So let’s get a little specific through this post and draw your attention to the ills of traditional hiring and innumerable gains of outsourcing the staffing process.
Handling payroll, for one, can be nothing short of a nightmare for businesses. And you add to the mix a great many more number of processes and procedures. Just consider the sheer magnitude and number of resources you need to handle and monetary overhead you need to endure. Well apparently, an overwhelming majority of businesses worldwide are doing exactly that. But this fact doesn’t serve as a testimony that traditional method of staffing is the way to go.
The truth is, even though manpower outsourcing has been around for a while, it still seems to be taking nascent steps if you consider the ratio of companies doing traditional hiring versus those investing in a firm that outsourced this requirement of theirs. The word around the benefits of outsourcing the staffing needs of an enterprise hasn’t quite spread yet, and thus there are, although unfounded, but concerns regarding this model of staffing. Business owners are wary of the quality of people that they are provided with by a staffing provider. While they trust recruitment firms that have been in business from decades, but they haven’t quite gotten around to fully trusting the firms that contract out their own employees to the businesses in need. The concern is valid to an extent because there are a lot many manpower outsourcing companies that do not put a lot on focus on quality, but are aiming to reduce their own hiring costs. These companies hire people with an agenda to get cheap manpower on board and then contract them out to businesses. The result is these businesses not getting quality for the money they spend as part of their contract with the outsourcing firm. And that’s how the credibility of outsourcing companies on the whole takes a bit. This percolates down to the general perception about the practice that exists industry-wide.
So, is there a valid reason to leave their concerns behind and go for outsourcing manpower needs? Is there a way companies can avoid getting a rough deal? Can companies benefit a great deal choosing this practice?
The answer to all the three questions is a sure yes. The most important point to consider before investing in manpower outsourcing is that you need to find the right partner. Keeping in mind the points stated above, you need a thorough research and ask for references before you make the final call to outsource a job to someone from an outsourcing company. There is no dearth of outsourcing companies, especially in places like India where the service sector has been flourishing with full zeal. Getting people from such places leads to direct saving of costs and injection of quality in your business. But you need to know how to filter good out from the herd. Hurrying through the process and not paying attention to details can really lead to you bringing on board unskilled workers for whom you are paying a reasonable amount. The quality of manpower you get outsourced depends on the reputation of the company you are partnering for this arrangement. If the outsourcing company has been in business for considerable time, if it has built a solid reputation, if there are testimonies to their service, if it’s focus on hiring quality is proven, you are in good hands. These reliable firms may charge a price that’s more than the average price out there in the market, but the returns outlast the investment by a fair degree. At the end of the day, quality trumps all other factors and gives your business the kick it needs. So don’t skimp on your research and get some reliable sources who can refer you some good names.
So, in order to reemphasize just how much manpower outsourcing can help your business to make best of its resources, let’s list down the benefits that have led to the emergence of this practice despite the roadblocks and negative word of mouth:
Cost saving – Every benefit of manpower outsourcing has to start and end with the cost to business that you enjoy if you hire your employees from a professional outsourcing firm on a temporary or permanent arrangement. There is a complex tapestry to the scheme of things when it comes to hiring and employing an individual in house. And this tapestry requires you to invest an abundance of your monetary and non monetary resources into the process, just so you get people you can trust and rely upon. Getting some other professional company to handle this task for you gives you quantifiable and unquantifiable benefits. Even menial jobs require you to keep constant outflow of resources that you can avoid when in arrangement with an outsourcing firm.
Dedicated Workforce: You get a pool of highly dedicated employees who won’t back off from giving their best, which is to say that they would be willing to work overtime and in night shifts because they want to prove their worth. This is how the BPO model works. The outsourcing company wants to give you a service that’s worth the last penny spent, and, what’s more, they do not charge extra for it. All the benefits to the employees, if any, are taken care from their end. And you are only paying for the service you get, on time and adhering to deadlines.
Help in Times of Urgency: Companies often find themselves left in lurch when an important project member resigns off abruptly. Getting someone to fill their shoes is never an easy job because you need to find someone equally talented, and you need to find them quick. Unfortunately, the employment industry doesn’t work that way – either for the employer, or for the employee. It’s hard to find the right people for the right job in the first place, and when you add the time constraint to the whole deal, things get even more complicated. That’s when the outsourcing firms come as much-seeked partners. They have the people you need ready to be deployed at the earliest notice. And these people may be freshers or they may come from years of experience in your industry. The decision happily rests with you – you communicate the firm your needs, and they fill you in with the candidates that are most suited for your projects. From the pool of talent they have at disposal, you don’t have to spend lot fo time waiting for the right guy.
Layers of the to-do tasks condensed: It goes without saying that with every or professional you hire, the processes keep adding up – right from the moment you make your first contact with them while scouting for talent. And then the whole sequence of procedures is carried out. Scanning them in context to how suitable they are for your profile, interviewing them, getting different teams to check the candidature, preparing the papers, deciding on the payroll, handling the joining formalities, carrying out the induction, and so an and so forth – it just keeps on piling up. If you are expecting optimum performance from your HR department at all times, considering so many processes are to be taken care of, you are asking for a bit too much. It’s not say that you keep your expectations realistic and settle for below-par performance, but it’s worth giving a thought that to make the best out of each function, you need services of a professional outsourcing service provider. Not only are they experts at what they do, they can elevate you to set higher goals simply by letting you channel all your energies and resources on the processes that are business and customer focussed.
There are so many layers to hiring new employees. The slightest of anomalies can snowball into unforeseen crisis, and businesses find themselves at the wrong end of the stick. So when you have an option choosing which you will only be spending lesser amounts of money on doing tasks the better way and giving yourself room to think about growth, there is no practical reason to turn around and reject it.
Outsourcing is one industry that’s spreading its wings fast and thick. The odds seem to be leaning more and more in favour, which should be encouraging signs. And there are genuine reasons for the growing interest towards this practice, which are discussed at length above. Whilst this is true that still a majority of business owners view at this practice dispassionately, the truth (and profit) remains on the side of the minority number of businessmen and women who have opted for manpower outsourcing.