HR Outsourcing is a process in which the human resource activities of an organization are outsourced so as to focus on the organization`s core competencies. Often HR functions are complex and time consuming that it will create difficulty in managing other important thrust areas. By HR outsourcing, this problem can be avoided which will enhance effectiveness by focussing on what the organization is best at. It will also improve the flexibility of the organization to the rapidly changing business needs. Usually businesses that outsource HR are typically small to midsize firms with number of employees ranging from 25 to 1500. There are HR outsourcing firms present so as to meet an organization`s HR requirements. Some HR outsourcing firms are generalists, offering a wide variety of services, while others are specialists, focusing on specific areas such as recruitment, payroll etc. Depending on the degree of outsourcing required, we can either outsource the entire HR functions or contract for specific HR functions. Some of the services provided by HR outsourcing firms are: Recruiting, training, and development Overseeing organizational structure and staffing requirements Tracking department objectives, goals, and strategies Employee orientation programs Some of the well-known HR outsourcing companies are Viteb, PeopleStrong, Trinet etc. HR outsourcing has become a popular solution for organizations to remain competitive and cut costs. It also provides skilled professionals who are focused specifically on HR. The Advantages of Outsourcing HR Functions An organization's human resources department is responsible for a variety of functions. Human resource departments oversee employee payroll and tax filing as well as employee benefit and health administration. Human resources also manage legal compliance, maintain files and records, and oversee training and development. For many businesses, the various functions of the HR department are too comprehensive and complex to maintain in-house. Businesses that outsource HR functions receive several advantages that support the company's bottom line. Risk Management Human resources outsourcing firms help businesses minimize risk. Employment and labor laws change regularly, and it can be difficult for employers to remain up-to-date on regulations that affect the workplace. Outsourcing firms employ HR professionals whose purpose is to stay abreast on a variety of federal and state employment laws. HR staff helps businesses comply with these laws to avoid costly lawsuits brought on by employees. HR
Recruitment and selection In this environment, the importance of finding the right person for the job cannot be over emphasised and the decision to appoint an individual is one of the most crucial decisions an employer will ever take. Zambia has a lot to learn from this. Selection decisions should no longer be based on ethnic backgrounds or tribal lines. This new environment challenges the traditional approach to recruitment and selection. Training and development There is also a need to continuously train and develop the workforce to achieve competitive advantage. Training will ensure that the employees develop the right skills, attitudes and knowledge that will enable them to perform their jobs effectively and efficiently. Zambia has to invest a lot in education and training. We have to draw lessons from the success of Japan and Germany, which have relied so much on the development of the skills, aptitudes and efforts of their people. Reward management Wages do provide a source of motivation for employees to perform effectively. The Zambians leaving the country are doing so because of high wages offered by other countries. As a result of globalisation, there is now free mobility of labour. International companies can advertise through the Internet and recruit employees from across borders. Management development Managers should have a vision and should also understand what is expected of them. Managers now should be trained to think globally and act locally. Also there should be people succession plans for management. The capabilities of any organisation to achieve its business strategies in the light of critical success factors for the business (innovation, quality leadership, etc.) depend largely on the capability of its managers as developed within the organisation to meet its particular demands and circumstances. Employee participation Employee participation will tend to enhance the employee's contribution. There are various methods of employee involvement, e.g., joint consultation, quality circles, and suggestion schemes. Japan is again cited as an example in terms of employee participation practices. The most emulated techniques have been quality circles. Motivation In order that we achieve sustained high levels of performance through people, they should be well motivated. This can be done through the provision of incentives, rewards, leadership and
An understanding of the content of a job assists an organization in specifying the knowledge, skills, and abilities needed to do the job. These KSAs can be expressed in terms of a job specification, which is an Exhibit 1 Selection Process 1. Job Analysis The systematic study of job content in order to determine the major duties and responsibilities of the job. Allows the organization to determine the important dimensions of job performance. The major duties and responsibilities of a job are often detailed in the job description. 2. The Identification of KSAs or Job Requirements Drawing upon the information obtained through job analysis or from secondary sources such as O*NET, the organization identifies the knowledge, skills, and abilities necessary to perform the job. The job requirements are often detailed in a document called the job specification. 3. The Identification of Selection Methods to Assess KSAs Once the organization knows the KSAs needed by job applicants, it must be able to determine the degree to which job applicants possess them. The organization must Once the organization knows the KSAs needed by job applicants, it must be able to determine the degree to which job applicants possess them. The organization must Selection methods include, but are not limited to, reference and background checks, interviews, cognitive testing, personality testing, aptitude testing, drug testing, and assessment centers. 4. The Assessment of the Reliability and Validity of Selection Methods The organization should be sure that the selection methods they use are reliable and valid. In terms of validity, selection methods should actually assess the knowledge, skill, or ability they purport to measure and should distinguish between job applicants who will be successful on the job and those who will not. 5. The Use of Selection Methods to Process Job Applicants The organization should use its selection methods to make selection decisions. Typically, the organization will first try to determine which applicants possess the minimum KSAs required. Once unqualified applicants are screened, other selection methods are used to make distinctions among the remaining job candidates and to decide which applicants will
Nontechnical skills, such as Communication Interpersonal Reasoning ability Ability to handle stress Assertiveness Work habits Conscientiousness Motivation Organizational citizenship Initiative Self-discipline Absence of dysfunctional behavior, such as Substance abuse Theft Violent tendencies Job-person fit; the applicant is motivated by the organization's reward system fits the organization's culture regarding such things as risk-taking and innovation would enjoy performing the job has ambitions that are congruent with the promotional opportunities available at the firm In addition to providing reliable assessments, the firm's assessments should accurately measure the required worker attributes. Many selection techniques are available for assessing candidates. How does a company decide which ones to use? A particularly effective approach to follow when making this decision is known as the behavior consistency model. This model specifies that the best predictor of future job behavior is past behavior performed under similar circumstances. The model implies that the most effective selection procedures are those that focus on the candidates' past or present behaviors in situations that closely match those they will encounter on the job. The closer the selection procedure simulates actual work behaviors, the greater its validity. To implement the behavioral consistency model, employers should follow this process: Thoroughly assess each applicant's previous work experience to determine if the candidate has exhibited relevant behaviors in the past. If such behaviors are found, evaluate the applicant's past success on each behavior based on carefully developed rating scales. If the applicant has not had an opportunity to exhibit such behaviors, estimate the future likelihood of these behaviors by administering various types of assessments. The more closely an assessment simulates actual job behaviors, the better the prediction.