OUTPLACEMENT & HR OUTSOURCING

Presented by Ahana S Kumar

Outplacement is the process of helping employees who are made redundant to find jobs elsewhere. Rather than simply handling out redundancy notices, some more progressive employers arrange for their employees to receive career advice and assistance in seeking alternative work.

Outplacement

Outplacement is the efforts made by a downsizing company to help former employees through the transition to new jobs and help them re-orient to the job market

Outplacement is either delivered through individual one-on-one sessions or in a group format. Topics include career guidance, career evaluation, resume writing and interview preparation, developing networks, job search skills and targeting the job market.

History:

The term outplacement was coined more than 30 years ago by the founder of a Chicago-based career consultancy.

The increased rates of downsizing, rightsizing, redundancies and lay offs, during the 1980s and 1990s,businesses increasingly found a need for some form of assistance in reducing the trauma of losing a job.

Indeed, research shows that losing one's job is one of the most stressful experiences a person can face, ranked third behind death and divorce

Advantages to offering outplacement support

1. Avoid the risk of litigation

2. Maintain a positive public image 

3. Improve morale and productivity

4. Help displaced workers find new employment quickly

Outsourcing

In business, outsourcing involves the contracting out of

a business process to another party (compare business

process outsourcing).

The term "outsourcing" dates back to at least 1981.

Outsourcing sometimes involves transferring

employees and assets from one firm to another, but not

always.

Outsourcing includes both foreign and domestic

contracting, and sometimes includes offshoring

(relocating a business function to another country).

Financial savings from lower international labour

rates can provide a major motivation for

outsourcing/offshoring

Business Process Outsourcing

Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider.

Human resource outsourcing (HRO) occurs when a business instructs an external supplier to take responsibility (and risk) for HR functions and perform these tasks for the business.

• Benefits of HR Outsourcing

Lowered Costs Lower overhead and other labour costs by allowing your HR firm to handle the paperwork and mandatory training.

Reduced Liability Reduce company liability that comes with hiring (and firing).

Improved Office Performance Improve office performance by setting more descriptive job qualifications and expectations with insight from an HR team.

Increased Company Efficiency Increase company efficiency by allowing employees to focus on the business instead of payroll and paperwork.

• Drawbacks of HR Outsourcing

Secondary Costs Secondary costs, such as trainings or orientations, are sometimes hidden.

Candidate Quality Candidate quality may not be up to your company standards, without clear and continuous communication.

Company Culture Company culture could be affected if the HR firm doesn’t have a clear understanding of your office dynamics.

Training Time Training time can be more extensive through the outsourced company than it would be in-house.

 Examples of HR Outsourcing

 Delta Airlines: Signed a deal with Affiliated Computer Services for 7 years, valued at $120 million. This will save them an estimated $50 million on updating human resources technology.

  Duke Energy: Has a 7 1/2-year contract with Hewitt Associates to handle payroll, performance management, and other HR back-office administrative services,

  AT&T: Has a 7 year deal with Aon Human Capital Services to provide end-to-end human resources administration, signed in 2002. After aligning the deal's structure, expectations and its 45 metrics, they have seen "double digit" savings.

     Others examples include Bank of America, Prudential Financial,

and Motorola signing comprehensive human resources outsourcing deals.

Thank You