This document provides an overview of outsourcing from Toronto Training and HR. It defines outsourcing and lists common areas where organizations outsource work such as cleaning, security, and IT. The document discusses reasons for and against outsourcing as well as best practices. It also includes examples of outsourcing cleaners in Toronto and potential problems with outsourcing. The document concludes with case studies and questions about outsourcing.

1. Outsourcing
by Toronto Training and HR
June 2012

2. 3-4 Introduction to Toronto Training and
HR
Contents 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. Introduction
Page 3

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. Definition
Page 5

6. Definition
Outsourcing
Page 6

7. Main areas in which
outsourcing occurs
Page 26

8. Main areas in which outsourcing
occurs
Cleaning premises
Security services
Building maintenance
Trucking services
Catering
IT
Legal services
Market research
Page 27

9. Good reasons for
outsourcing
Page 26

10. Good reasons for outsourcing
1 of 2
Third parties may be able to perform transactional
HR activities more competently than an in-house
team, thereby enabling it to focus on more
strategic efforts rather than day-to-day personnel
activities
To enable a neutral organization to intervene in
what may have been a previously heated or
difficult situation
Page 27

11. Good reasons for outsourcing
2 of 2
To lower the cost of some HR activities such as
payroll and benefits
To replace technology that is prohibiting HR
transformation
Page 27

12. Potentially bad reasons for
outsourcing
Page 26

13. Potentially bad reasons for
outsourcing
To lower total HR costs
To reduce headcount costs
Page 27

14. Areas to consider when
outsourcing
Page 26

15. Areas to consider when
outsourcing 1 of 2
This is your business, and you should have an in-
depth interview with the person or company you
are considering, to make sure they are qualified to
take on the desired work
Depending on the type of task you are
outsourcing, let your employees know what is
going on and how it will benefit them
Allow time for training and setting expectations
with each other.
Page 27

16. Areas to consider when
outsourcing 2 of 2
Take baby steps
Continue to tightly manage the outsourced task
Consider the degree to which outsourcing could
save you both time and money
Page 27

17. Drill A
Page 48

18. Drill A
Page 49

19. Why do contractors put
forward a competitive
price?
Page 26

20. Why do contractors put forward
a competitive price? 1 of 2
They become expert in their field and know how to
achieve high levels of productivity
They operate under flexible staffing levels where
part-time and temporary work is necessary to
meet the needs of clients
Employees can be moved from one contract to
another as required to meet swings in demand
Page 27

21. Why do contractors put forward
a competitive price? 2 of 2
The culture of the organization is one that is
customer-focused so employees become used to
change and a variety in working hours
Service innovation arises naturally from an
organization meeting the whims of demanding
clients
Rewards are likely to be performance-based
Benefits such as pensions tend to be less generous
Page 27

22. Example-cleaners in the
City of Toronto
Page 26

23. Example-cleaners in the City of
Toronto 1 of 6
FACTS AND FIGURES
27000
Light duty cleaners
Specialized cleaners
Janitors, caretakers and superintendents
Age categories
Income, private v public
Page 27

24. Example-cleaners in the City of
Toronto 2 of 6
HIGH STAFF TURNOVER
Low levels of compensation
Poor working conditions
Lack of sufficient training
Job security
High levels of on-the-job stress
Page 27

25. Example-cleaners in the City of
Toronto 3 of 6
HIGH STAFF TURNOVER
Lack of experience for workers
Costs associated with recruitment and training
Difficulties in maintaining a high level of quality
Page 27

26. Example-cleaners in the City of
Toronto 4 of 6
HEALTH CONCERNS
Occupational health & safety
Hurley case
Link between cleaning and hospital-acquired
infections
Page 27

27. Example-cleaners in the City of
Toronto 5 of 6
LIVING WAGE
Transfer of economic burden
Health status and socio-economic factors
Rising levels of inequality in the city
Page 27

28. Example-cleaners in the City of
Toronto 6 of 6
SOURCE OF SAVING/EXPENSE
Labour cost savings from outsourcing
Cost of contracting and supervision
Foregone tax revenues
Social program expenses
Costs associated with inadequate quality
Growing levels of social exclusion
Lack of springboard job opportunities
Spillover in marginalized neighbourhoods
Page 27

29. Leaders considering a
large outsourcing project
Page 26

30. Leaders considering a large
outsourcing project
Get support from all departments
Create operational accountability
Seek the appropriate level of advice
Set a realistic time frame
Don’t oversell
Page 27

31. Secret to getting
outsourcing right
Page 26

32. Secret to getting outsourcing
right
Writing a full business plan
Understanding what the real return on investment
is likely to be
Evaluating the capabilities of your proposed
vendor carefully
Ensuring that you have the right team in place
Page 27

33. Best practice guidelines
Page 26

34. Best practice guidelines
Management
HR-specific
Service/business issues
Communication/understanding issues
Page 27

35. Reasons to make the
decision
Page 26

36. Reasons to make the decision
1 of 2
TO COMMENCE OUTSOURCING
Cost savings
Improved service
Focus on core business activities
Achieve greater flexibility
Page 27

37. Reasons to make the decision
2 of 2
TO END OUTSOURCING
Cost savings
Improved service
Sufficient in-house resources
Trade union pressure
Page 27

38. Problems with outsourcing
Page 26

39. Problems with outsourcing
Legal disputes over the meaning of contractual
terms
Inability of organizations to manage the
relationship with contractors properly
Poor levels of service
Communication difficulties between client and
contractor
Problems in evaluating/monitoring performance
levels achieved
Page 27

40. Common pitfalls and
issues to overcome
Page 26

41. Common pitfalls and issues to
overcome
Their negotiation team is better than mine
Insufficient support from other business areas
Failing to understand how things will work once
the arrangement is up-and-running
Gaps between expectations and implementation
Failure to get to grips with what the contract says
Disparities in the quality of the sales team
compared with the business-as-usual team
Lack of interest once the deal has been signed
Page 27

42. Drill B
Page 87

43. Drill B
Page 88

44. Case study A
Page 89

45. Case study A
Page 90

46. Case study B
Page 89

47. Case study B
Page 90

48. Case study C
Page 89

49. Case study C
Page 90

50. Conclusion and questions
Page 99

51. Conclusion and questions
Summary
Videos
Questions
Page 100