OUTPLACEMENT & HR

OUTSOURCING

Presented by
Ahana S Kumar
 Outplacement

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 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 doesnt
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.