Organizations
using HR outsourcing can gain certain advantage. Lists three advantages of HR
outsourcing and that is economic value, technological value and strategic
value, these increase the level of HR management and the competitive advantage
of the organization (Wang, 2008). The
economic advantage of outsourcing means that “outsourcing can make the
enterprise use the outsourcing service provider of economies of scale advantage
and low cost service for better services, human resources management and the
ability to keep receiving outsourcing the changing of advanced equipment,
advanced technology and space expansion of the human resources management
advantages” (Hepeng, 2018).
Degree
of use of outsourcing is determined by factors such as the degree of
intervention of top managers and his decision-making power, strategic position
and asset specific HR outsourcing (Tomás F.
Espino-Rodríguez, 2017). “Human resources management business whose
asset specific city is higher, if it is outsourced, suppliers may not be able
to fully understand the culture so outsourcing risk is higher (Lihua, 2013).
Key
factors in outsourcing success are the decision process, partners, contract and
partnership quality. Partnership quality, which is the independent variable of
the study, is formed by factors such as trust, business understanding, benefit /
risk share, conflict and commitment (Ooi Ee,
2012). These factors are determined to be affected positively by certain
determiners such as joint action, communication quality, information sharing,
mutual dependency, cultural similarity and top management
support (Ates, 2013).
The
implementation of outsourcing is accompanied by many changes, such as the
changing role of the workers who used to provide R & S services and who
must adapt to new challenges in the organization (Jahyun Goo, 2009). Change of their former work process can be
frustrating and demotivating, so adequate preparation for the implementation of
these changes using change management plan is recommended (BOS, 2008).
Recruiting from internal sources and external also affect the
recruitment process. The recruitment policy of an organization determines the
destinations or enlistment and gives a structure to usage of recruitment
program (Cocuľová, 2015).
Internal Recruitment Determinants
01. Recruitment Policy
Ø Need
of the organization.
Ø Organizational
objectives
Ø Preferred
sources of recruitment.
Ø Government
policies on reservations.
Ø Personnel
policies of the organization and its competitors.
Ø Recruitment
costs and financial implications
02. Human
Resource Planning
Effective
human resource process and procedure helps in fixing the loops present in the existing
manpower of the organization. This also helps in filter the number of
employees to be recruited and what kind qualification and skills they must
possess (Bramham, 1994).
03. Size of the Organization
The size of
the organization affects the recruitment
process. If the organization is planning to increase its
operations and expand its business, it will think of hiring more personnel,
which will handle its operations
04.
Cost involved in recruitment
Recruitment process also count the cost to the employer,
that why organizations try to employ/outsource the source of recruitment which will be cost
effective to the organization for each candidate (Roberts, 1997).
05.
Growth and Expansion
Organization will utilize or consider utilizing more work force in
the event that it is growing its operations (Ansoff, 1965).
External Recruitment Determinants
01.
Supply and Demand
The availability of manpower both within and outside the
organization is an essential factor in the recruitment process (California. Employment Development Department.
Employment Data and Research, 1981).
02.
Labour Market
Employment conditions where the organization is located will
effected by the recruiting efforts of the organization (Purohit, 1989).
03.
Image of the organization
Image of the firm
is another factor having its effect on the Different government controls
forbidding separation in contracting and work has coordinate effect on
enlistment practices A company with positive
image as an employer able to easier to attract and retain employees than
an organization with negative image (Morgan,
1998).
04.
Political-Social- Legal Environment
Different government controls forbidding separation in contracting
and work have coordinate effect on enlistment practices (Daniel V. Davidson, 2016).
05.
Unemployment Rate
The Element that influences the availability of applicants is
the economy growth rate. At the point when the organization isn't
making new jobs, there is frequently over supply of qualified work which thusly
prompts unemployment (Dickens, 1994).
06. Competitors
The recruitment policies and procedure an of the competitors
also affect the recruitment function of the organizations. Recruitment is one of
the main departments which place the right candidates to the right job. The
recruiters should identify the best candidates from different sources and job
sites (Taylor, 1987).
Example of Employee Recruitment
Determinant at a Leading Consumer Durable Organization in Sri Lanka where I
work
External
Determinants
Ø Social
& Economic Factors
Ø Employment
Rates
Ø Labor
Market condition
Ø Reservation
System
Ø Market
Competition
Ø Information
System
Internal
Determinants
Ø Company
pay’s Package
Ø Work
Type
Ø Organization
Culture
Ø Career
Planning
Ø Company’s
Size
Ø Company’s
Product
Ø Company’s
Growth Rate
Ø Cost
of Requirement
List of References
Ansoff,
H. I. (1965). Corporate Strategy: Business Policy for Growth and Expansion.
Ates,
M. (2013). The effect of partnership quality on outsourcing success in human
resources functions.
BOS,
J. (2008). Top Tips For Driving RPO Success,Workforce Management, 2008.
Bramham,
J. (1994). Human Resource Planning.California. Employment Development
Department. Employment Data and Research. (1981). Butte County Labor Supply
& Demand.
Cocuľová,
J. (2015). AN ANALYSIS OF DETERMINANTS OF RECRUITMENT AND SELECTION OUTSOURCING
IMPLEMENTATION.
Daniel
V. Davidson, L. M. (2016). Business in the Contemporary Legal Environment.
Dickens,
W. T. (1994). An analysis of the nature of unemployment in Sri Lanka.
Hepeng,
D. (2018). Aligning strategy typology and human resource management in a
transitional environment : the case of Huabo Group.
Jahyun
Goo, R. K. (2009). The Role of Service Level Agreements in Relational
Management of Information Technology Outsourcing: An Empirical Study.
Lihua,
J. a. (2013). Hepatitis B virus X protein represses miRNA-148a to enhance
tumorigenesis.
Morgan,
G. (1998). Images of Organization.
Ooi
Ee, H. A. (2012). The effects of partnership quality on business process
outsourcing success in Malaysia: key users perspective.
Purohit,
Y. S. (1989). Industrialising Economy and Labour Market in India.
Richard
M. Burton, B. O. (2004). Strategic Organizational Diagnosis and Design: The
Dynamics of Fit.
Roberts,
G. (1997). Recruitment and Selection.
Taylor,
M. (1987). Organizational recruitment activities and applicants' reactions at
different stages of the recruitment process.
Tomás
F. Espino-Rodríguez, J. C.-F. (2017). Factors determining hotel activity
outsourcing. An approach based on competitive advantage.
Wang,
K. L. (2008). Does IT outsourcing deliver economic value to firms?
Organizations are now moving towards out sourcing the recruitment process. This could be either done as outsourcing the entire end to end process or of recruitment of the entire company or only for high volume vacancies (Armstrong & Taylor, 2014). According to Statista, worldwide spending on recruitment process outsourcing has steadily increased from 2017 and estimated to be US $25 billion in 2025, which indicates that outsourcing will be the trend ( Statista, 2019).
ReplyDeleteAdding to your comment Sonali;Even though the use of outsourcing in HR has become a growing trend, its application does not always bring about the results the company hoped for (Goldschmidt, 2009).
DeleteOrganizations using HR outsourcing can gain a certain advantage. Key factors in outsourcing success are the decision process, partners, contract and partnership quality. Degree of use of outsourcing is determined by factors such as the degree of intervention of top managers. "Human resources management business whose asset-specific city is higher, if it is outsourced, suppliers may not be able to fully understand the culture so outsourcing risk is higher" (Hepeng, 2018).
ReplyDeleteThank you Malinga for you comment adding to that Degree of use of outsourcing is determined by factors such as the degree of intervention of top Managers and his decision-making power, strategic position and assets specificity (Lihua,2013)
DeleteBusinesses irrespective of their sizes have to recruit to meet up staffing needs. Several means to attract applicants are available, they best depend on the organizations goals and requirements. Before advertising take some time to have a look at the business plan and how it relates to human resource planning. (McIntyre, 2010)
ReplyDeleteThank you Kelum for your comment adding to that; New technologies, skills and resources/capabilities and cost cutting and cost shifting contribute heavily to shape the decisions makers’ perception towards the benefits of outsourcing (Jain and Ramachandran, 2011)
DeleteIn addition to the above. Another advantage of internal recruitment is reduction the employee turnover. However, new innovative ideas, methods and strategies will not come in to the organization with this process (Trivikram,2017).
ReplyDeleteAccording to the Shafique,2012 Internal recruitment determinants factors are
Delete•It is easier and faster to get needed employees on time when we planned in advance.
•Managers can make enhanced recruitment decisions if they can discover the best alternatives
Lower level jobs can be outsourced as those are requiring short term employment relationship and not requiring intensive training (Redman and Wilkinson, 2009).
ReplyDeleteDisagree with you Eranga, According to the P. Joyce, 2012 short term employment disadvantages are
Delete•The temporary job may be exactly the job the job seeker wants, with a time limit for the employment commitment.
•It provides an income stream while the "real" job search continues. (We called this the "salary continuation plan" in the past.)
•It may give the job seeker a chance to "test drive" a job, an employer, a profession, or an industry.
•The job seeker has an opportunity to start their career migration to a new field.
•It fills a gap in experience needed for the next job.
•It fills or a gap in the resume's employment history
•Sometimes, it provides both income and benefits (health insurance, etc.)
Sometimes, it opens the door to a permanent job, often referred to as "temp-to-perm." These jobs give both the employee and the employer an opportunity to see how they work together.
Research evaluating the effects of realistic job previews (RJPs) has more than a 50-year history (Breaugh, 1992). The basic
ReplyDeletepremise upon which the use of an RJP is based is that many job applicants have inaccurate perceptions of positions for which they
are applying. Given many employers try to make themselves appear to be a good place to work (Billsberry, 2007), these applicant
expectations generally are inflated. If hired, individuals possessing inflated job expectations are thought to be more likely to
become dissatisfied with their positions and more likely to quit than applicants who have more accurate expectations (Breaugh &
Starke, 2000).
An important factor which contributes to outsourcing bringing the desired results is its successful implementation. This realization led to a research study, whose aim is to define a set of factors.
DeleteDetermining the successful implementation of R & S outsourcing through exploring of statistically significant correlation between selected factors and the perceived success of the R & S outsourcing implementation (Cocuľova,2015)
According to Dessler (2001), Internal Recruitment offers;
ReplyDelete• Happiness and high moral of employees
• Sense of security among employees
• Employees know that they stand the chance of promotion to higher positions. This induces them to work harder so as to prove their worth
• Internal recruitment ensures continuity of employment and organizational stability
• Prospects of transfer to new posts inspire employees to keep on adding to their knowledge and experience which leads to their development
• Filling of vacancies from internal source is quite economical and convenient. No time and money is to be spent on advertisement, tests and interview because the knowledge and skill of employees are already known. There is no need for orientation of employees for preparing them for the new job.
The amount of information presented within a recruitment source, as well as recruitment source informativeness and specificity are assumed to be recruitment source characteristics affecting the attraction of job candidates. The more informative and specific information are provided to the job seeker, the better job candidates in terms of their qualifications may be recruited by an organization. Especially providing the job seekers with information on organizational and job attributes, such as the organizational culture, structure, value and beliefs, rewards, training and development opportunities, as well as supervision, pay level, promotion opportunities and location, helps job seekers to assess whether they fit to the organization and are capable of fulfilling the job requirements. Alsabbah, M.Y.A. & Ibrahim, H.I. (2013).
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