HR Outsourcing (HRO)

These days a big number of HR professionals talk about HR outsourcing particularly in the Middle East. Discussing the facts whether it is a helpful practice or not! Is it a step toward HR transformation? Many might think of this solution to help them cut the HR administrative costs and focus more on the strategic value of HR. According to the market (shrm.org; kennedyinfo.com; Dataquest Inc.), there is a strong increase in HR outsourcing spending in the United States and Europe. This will gradually affect the market in the Middle East. In fact, there are a good number of corporations in that area performing HR Business Process Outsourcing (HR-BPO). Hay-Group for an example is a major leader in the area designing HR frameworks and supplying benchmarking data. However, this is not what intended in this article. We are here discussing the outsourcing of some or all the HR functions (tasks) and not the business processes.

To begin with, let us view the possible areas where outsourcing most likely will take place. According to a survey (Esen, 2004) respondent (168 HR professionals) reported the following functions/tasks are outsourced completely:

Background checks 49%
Employee counseling 47%
Account administration 43%
Health care administration 24%
Temporary staffing 21%

The list expands more but the percentages decrease. For this reason, let us think of the above as an example and consider the high percentages reported. If we ask ourselves, do we already outsource these tasks/functions in the Middle East? Yes, sure we do.

 

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If s/he can do it then I can!

There are many reasons for workplace stress that could be categorized based on its nature. One major cause of workplace stress is the capabilities or competencies. Basically, the skills, knowledge, and experience an incumbent have. These factors are the basic needs for a person to carry out a certain job. With lack of some of these factors or its components, or the level required for the job. There will be a big potential for the workplace stress to increase above the normal limits. Once this type of stress increases, the job incumbent will start losing interest in the job, or it will be very difficult to meet the required deliverables. But, with the right skills, knowledge, and experience the employee will be more productive and creative.

If s/he can do it then I can do it! Although, this could be defined as enthusiasm, it could be a very risky situation. It is true that we can learn what we want to learn, but there are things that take time. In other words, the time employee x take to build a learning curve vary from the time employee y take to do the same. Therefore, when either you misplace yourself more or less, in terms of what you can do or not you will expose yourself to a vulnerable situation. Hence, you will experience workplace stress.

Thus, instead of saying “if s/he can do it then I can do it!” We should say something like “what do I need to do it?”.

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Why do we need job descriptions?

Any HR group must have some basic documents to work properly. These documents could include the strategy, policies & procedures, performance system framework, and job descriptions. While these are the most important documents to have, it is not necessarily always. It may differ from one organization to another depending on many factors. Here I am going to talk about the job descriptions (JDs) and its importance to the organization. There are many benefits of having JDs in place. These benefits could yield on the employers and the employee at the same time.

On the employee level, a JD is considered as a good way to converge expectations. It is important to baseline a mutual understanding of the job between the employee and his/her supervisor. Without such road map, it could be difficult to join point of views on how the deliverables would look like. Yet, a JD should not be too descriptive in a way that limits the imagination of the employee nor condensed in a way that makes it vague.

On the other hand, a JD is very important for the employers for many reasons. Out of these reasons are finding the right candidates, minimizing overlaps between different jobs, and weighing each job. Once an employer efficiently weigh the job this yields to cutting pay inflation, help keep employees, and draw an effective organization structure.

Finally, many may ask what is the different between the formats that are scattered on the web. Which one my organization should use? If your organization is not looking beyond the JD itself, then it would not really matter. However, if your organization is looking after the JD which is the most cases. The document used must reflect the evaluation method that they are intending to apply. It could be clear enough for any HR practitioner that the JDs are the foundation of any HR framework. The foundation have to come first and then the rest although, it is not always the cases. I have seen it comes later on, but always remember that late arrival better than no-show.

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The complete training program

A friend of mine asked me about how to design a good training program. I thought it is useful to write about it, as I might have other point of views on this topic. I think it is not right to say that there is a standard format for a training program. In the world of training (all size fits all) may not work all times or most of the times. But if we consider the training program as a document to be filled or template to be completed I can say that in my view a good training program is a program that cover the following:

  • Explanation of the training needs analysis approach going to be used.
  • The identified gaps, putting it in understanding.
  • The objectives and goals of the program (long/short).
  • Job profiles covered in the program.
  • Participants groups.
  • An outline of training.
  • level requirements.
  • Training delivery.
  • Standards used.
  • Roles & Responsibilities.
  • Reporting methodology, which covers the evaluation methodology also.
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TNA evaluation matrix

In a previous post Competency based TNA (the top-down approach) I have mentioned that to make use of Competency based TNA you should have three documents:

  1. Competency Dictionary.
  2. Competency Level Matrix.
  3. Competency Evaluation Matrix.

The evaluation matrix helps evaluating the employee level of a certain competency. This helps assessing the gap which you will design your program to close.

This file (Competency Based TNA Show case) explains more in this regards.

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Competency based TNA (the top-down approach)

Competency based Training Needs Assessment (TNA) or I might call it the top-down approach for efficient training implementation. Is something might be known long time ago, but I was trying to carry out this approach and I couldn’t find an exact implementation methodology until recently I have figured out that I should start designing this framework if I may call it “framework”, starting from the top to down. I have developed the Competency Dictionary, Competency Level Matrix and the Competency Evaluation Matrix. The Competency Dictionary will work as the base for this framework, where all required leadership/technical competencies that we wants to have in this dept. are there!. The Competency Level Matrix is a simple matrix that shows the required level of knowledge for each competency for each job. The last one is the Evaluation Matrix which is there to be used on an annual basis to rate and measure the real level of the competency that the job incumbent indicates.

By doing this all parts of the puzzle is brought together to be a tool for efficient training. How training! as I said the top-down approach! now we know exactly what kind of competencies we would like to have, also the level of competency for each job and how much of it each employee shows. The next step is to close the gaps using the competency mapping method and raise the current level provided by employees using the right training program.

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