HR Steering Committee Summary
Wednesday 16th March
Developing talent and encouraging professionalism in the outsourcing sector has never been more important. The recession and subsequent spending cuts have had a serious impact on staff numbers and organisations have had to rethink the way in which they recruit, retain, interact and train their employees with the changing market.
This steering committee, chaired by Yvonne Williams, NOA Representative for Individual Professional Development, was brought together by the NOA with the objective of creating best practice and recommendations through a white paper.
Key Points
• BPO market is growing and the government is placing a lot more emphasis on outsourcing.
• Indian market is somewhat ‘overheating’ and is not as cost effective as it used to be.
• Latin American is proving to be a competitive offshoring destination, the central USA market is emerging while the Nordic market is also opening up.
• Growth potential in HRO but it can bring a lack of intimacy.
• HR aware that each department in an organisation has its own culture.
• More HR operational functions are being outsourced especially from companies who want to grow quickly.
• Outsourcing issues include length of contracts and exit strategies. Industry is nervous about long contracts but they are needed to gain trust and build relationships.
• Benchmarking is becoming more commonplace.
HRO Processes
• RPO - tendency for a single source supplier and this can be based offshore. Senior hirers generally have been kept onshore and most firms use Executive Search for this through their PSL.
• Payroll – traditionally outsourced, sometimes offshore.
• Learning and Development Training – delivery and development is rightshore and local.
• HR Operations – majority can be outsourced. Complex case management usually internal due to potential damage to branding. For example: Disciplinary / Grievance – usually internal.
• Reporting – usually internal
• Business Intelligence – data capture/mining – specialists used
• Vendor Management – internal to keep control
• Pensions / Admin – specialists used
• References / Security – specialists used
• Wellness / Staff Welfare – internal or specialists used – can effect branding
• Mobility / Tax / Visas - specialists used
• Repatriations – specialists used
• Psychometric Testing – specialists used
HR Challenges
• Branding
• Grievance / Discipline
• Motivation
• Cultural Awareness
• Legislation – pensions, employment rights, pan-European diversity, visa schemes, immigration.
• Work Councils
• Data Protection
General Challenges
• Supplier attrition
• Client Relationship Management
• Service Delivery Management
• Vendor Management (individual)
• Acquisitions / Mergers (of suppliers) and corporates
Action Points
• First Q2 steering committee to be organised mid-April focused on the HR outsourcing contract.
• Details of CSC research into employability and job creation to be sent to Yvonne.
• Steering committee notes / insights to be included in the upcoming lifecycle update.
• HR suppliers to present at next steering committee. Even balance of suppliers, end-users and analysts.
• EOA / Events calendar to be sent to all attendees.
Attendees
Yvonne Williams – NOA, Paul Corrall – Sourcingfocus.com, Anita Tilly – Capgemini, Diana Leleja – Runway, Rachel Lord – RPC, Jim Brannan – Bcerta, Kristina Holland – Bleum.
