Outsourcing June 2012


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Half day open training event delivered in Toronto.

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Outsourcing June 2012

  1. 1. Outsourcingby Toronto Training and HR June 2012
  2. 2. 3-4 Introduction to Toronto Training and HRContents 5-7 8-10 Definitions Costs of attrition 11-17 Reasons for leaving 18-21 Improving morale and motivation 22-25 Drivers of employee commitment and retention 26-27 Handling a resignation 28-29 Interview mistakes 30-31 Job satisfaction 32-33 Retaining female employees after maternity 34-41 Exit interviews 42-47 Managing turnover 48-49 Drill A 50-86 Examples 87-88 Drill B 90-98 Case studies 99-100 Conclusion and questions Page 2
  3. 3. Introduction Page 3
  4. 4. Introduction to Toronto Training and HR• Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden• 10 years in banking• 10 years in training and human resources• Freelance practitioner since 2006• The core services provided by Toronto Training and HR are: - Training event design - Training event delivery - Reducing costs - Saving time - Improving employee engagement & morale - Services for job seekers Page 4
  5. 5. Definition Page 5
  6. 6. DefinitionOutsourcing Page 6
  7. 7. Main areas in whichoutsourcing occurs Page 26
  8. 8. Main areas in which outsourcing occursCleaning premisesSecurity servicesBuilding maintenanceTrucking servicesCateringITLegal servicesMarket research Page 27
  9. 9. Good reasons for outsourcing Page 26
  10. 10. Good reasons for outsourcing 1 of 2Third parties may be able to perform transactionalHR activities more competently than an in-houseteam, thereby enabling it to focus on morestrategic efforts rather than day-to-day personnelactivitiesTo enable a neutral organization to intervene inwhat may have been a previously heated ordifficult situation Page 27
  11. 11. Good reasons for outsourcing 2 of 2To lower the cost of some HR activities such aspayroll and benefitsTo replace technology that is prohibiting HRtransformation Page 27
  12. 12. Potentially bad reasons for outsourcing Page 26
  13. 13. Potentially bad reasons for outsourcingTo lower total HR costsTo reduce headcount costs Page 27
  14. 14. Areas to consider when outsourcing Page 26
  15. 15. Areas to consider when outsourcing 1 of 2This is your business, and you should have an in-depth interview with the person or company youare considering, to make sure they are qualified totake on the desired workDepending on the type of task you areoutsourcing, let your employees know what isgoing on and how it will benefit themAllow time for training and setting expectationswith each other. Page 27
  16. 16. Areas to consider when outsourcing 2 of 2Take baby stepsContinue to tightly manage the outsourced taskConsider the degree to which outsourcing couldsave you both time and money Page 27
  17. 17. Drill A Page 48
  18. 18. Drill A Page 49
  19. 19. Why do contractors putforward a competitive price? Page 26
  20. 20. Why do contractors put forward a competitive price? 1 of 2They become expert in their field and know how toachieve high levels of productivityThey operate under flexible staffing levels wherepart-time and temporary work is necessary tomeet the needs of clientsEmployees can be moved from one contract toanother as required to meet swings in demand Page 27
  21. 21. Why do contractors put forward a competitive price? 2 of 2The culture of the organization is one that iscustomer-focused so employees become used tochange and a variety in working hoursService innovation arises naturally from anorganization meeting the whims of demandingclientsRewards are likely to be performance-basedBenefits such as pensions tend to be less generous Page 27
  22. 22. Example-cleaners in the City of Toronto Page 26
  23. 23. Example-cleaners in the City of Toronto 1 of 6FACTS AND FIGURES27000Light duty cleanersSpecialized cleanersJanitors, caretakers and superintendentsAge categoriesIncome, private v public Page 27
  24. 24. Example-cleaners in the City of Toronto 2 of 6HIGH STAFF TURNOVERLow levels of compensationPoor working conditionsLack of sufficient trainingJob securityHigh levels of on-the-job stress Page 27
  25. 25. Example-cleaners in the City of Toronto 3 of 6HIGH STAFF TURNOVERLack of experience for workersCosts associated with recruitment and trainingDifficulties in maintaining a high level of quality Page 27
  26. 26. Example-cleaners in the City of Toronto 4 of 6HEALTH CONCERNSOccupational health & safetyHurley caseLink between cleaning and hospital-acquiredinfections Page 27
  27. 27. Example-cleaners in the City of Toronto 5 of 6LIVING WAGETransfer of economic burdenHealth status and socio-economic factorsRising levels of inequality in the city Page 27
  28. 28. Example-cleaners in the City of Toronto 6 of 6SOURCE OF SAVING/EXPENSELabour cost savings from outsourcingCost of contracting and supervisionForegone tax revenuesSocial program expensesCosts associated with inadequate qualityGrowing levels of social exclusionLack of springboard job opportunitiesSpillover in marginalized neighbourhoods Page 27
  29. 29. Leaders considering alarge outsourcing project Page 26
  30. 30. Leaders considering a large outsourcing projectGet support from all departmentsCreate operational accountabilitySeek the appropriate level of adviceSet a realistic time frameDon’t oversell Page 27
  31. 31. Secret to gettingoutsourcing right Page 26
  32. 32. Secret to getting outsourcing rightWriting a full business planUnderstanding what the real return on investmentis likely to beEvaluating the capabilities of your proposedvendor carefullyEnsuring that you have the right team in place Page 27
  33. 33. Best practice guidelines Page 26
  34. 34. Best practice guidelinesManagementHR-specificService/business issuesCommunication/understanding issues Page 27
  35. 35. Reasons to make the decision Page 26
  36. 36. Reasons to make the decision 1 of 2TO COMMENCE OUTSOURCINGCost savingsImproved serviceFocus on core business activitiesAchieve greater flexibility Page 27
  37. 37. Reasons to make the decision 2 of 2TO END OUTSOURCINGCost savingsImproved serviceSufficient in-house resourcesTrade union pressure Page 27
  38. 38. Problems with outsourcing Page 26
  39. 39. Problems with outsourcingLegal disputes over the meaning of contractualtermsInability of organizations to manage therelationship with contractors properlyPoor levels of serviceCommunication difficulties between client andcontractorProblems in evaluating/monitoring performancelevels achieved Page 27
  40. 40. Common pitfalls and issues to overcome Page 26
  41. 41. Common pitfalls and issues to overcomeTheir negotiation team is better than mineInsufficient support from other business areasFailing to understand how things will work oncethe arrangement is up-and-runningGaps between expectations and implementationFailure to get to grips with what the contract saysDisparities in the quality of the sales teamcompared with the business-as-usual teamLack of interest once the deal has been signed Page 27
  42. 42. Drill B Page 87
  43. 43. Drill B Page 88
  44. 44. Case study A Page 89
  45. 45. Case study A Page 90
  46. 46. Case study B Page 89
  47. 47. Case study B Page 90
  48. 48. Case study C Page 89
  49. 49. Case study C Page 90
  50. 50. Conclusion and questions Page 99
  51. 51. Conclusion and questionsSummaryVideosQuestions Page 100