Human resources are an essential part of every company. The better people you have in your team, the higher your chances to outdo your competition. Nevertheless, it’s not always possible to find projects and constant employment for every person you would like to have in your team, especially when it comes to developers. That’s when outsourcing of human resources might be really helpful.
We’ve been working hard for a long time to develop a system which will facilitate the process of outsourcing employees since a great percentage of our developers work in this model. We’re still mastering it, though we have some tips we would like to share with you.
#1 HR OUTSOURCING PROBLEM
- “My employee feels scared of working for another company. He feels unsure about what it will look like. He feels unwanted”.
- HR outsourcing solution: Prepare your employees for outsourcing. Be honest with them from the beginning.
Outsourcing employees is a regular activity of many companies, especially if you're employing developers. It shouldn’t be treated as a mystery or demotion. It’s crucial to be honest with your team from the very beginning. Explain the situation on the market and the reasons why you decided to outsource them.
Maybe you want to have the best specialists available shortly, but now your company doesn’t have as many projects and as much budget as you need to process it. Maybe another company desperately needs a professional and is willing to pay a lot. There are thousands of possible reasons, but none of them should become a basis to feel ashamed or unwanted.
Build positive marketing around HR outsourcing. Show both the negative and positive sides of it. Be honest with your people. Support them throughout their new part of their career.
#2 HR OUTSOURCING PROBLEM
- Huge differences in companies’ cultures, a long process of adaptation.
- Educate both your employee and business partner. Discuss the terms of work and communication in advance.
Even though we live in a world that is under a process of globalization, there are still minor differences between companies that may completely change the perception of work from the employee’s side. It seems that one is the most efficient when they feel a part of the community they’re working in. Therefore, it’s highly beneficial to set the exact rules for the process of adaptation.
The more I feel a part of the team, the greater the chances that I will be proactive. No matter what your character is, you need some time to understand how a specific group and individuals want to be treated. The earlier you organize some integration for your outsourced employee, the better.Jerzy Puchalski, senior developer at HeroDOT
Educate both your employee and your business partner on how to act so that everyone remains happy and satisfied. Prepare a system that can be flexibly adjusted to different outsourcing situations and every time facilitate the adaptation process.
- Introduce trial periods
Trial periods aren’t always possible, but they’re strongly recommended. Ask your business partner if it’s possible. Limit the risk of a failure and maximize the chances of a successful cooperation.
Having a one-month trial period before the contract is officially signed, is a game-changer. It gives both an employee and a business partner enough time and experience to get to know each other. Even after such a short period, it’s possible to assess whether the cooperation will work out. It’s how you limit the risk.Wojciech Kozak, senior developer at HeroDOT
#3 HR OUTSOURCING PROBLEM
- “We guaranteed our partner we would outsource employees to them in case they need it. However, they surprised us, and we don’t have enough resources”.
- Set clear deadlines. Have a clear way of communication. Write rules down in the official document.
Stabilisation and warranty - these two things make a difference in running a business in the long-term. It’s a good thing to give guarantees to establish better partnerships. Nevertheless, life tends to constantly surprise us. And your role is to prevent negative consequences from your company. Set clear deadlines for your business partners so that they know when they can signalize their needs and requirements. Then, don’t forget about writing them down in an official document.
#4 HR OUTSOURCING PROBLEM
- “We’re doing HR outsourcing for some time, but we have no idea if it is good enough”.
- Give feedback. Get feedback.
Outsourcing HR isn’t a process that finishes when your employee starts working for another company. You should elaborate on a system to constantly monitor your deals. That is, primarily, the best possibility to gain knowledge if your solutions are well-designed and efficient.
Organizing feedback sessions once in a month between three parties - an “outsourced employee”, a mother-company as a “broker” and a new firm as a temporary employer allows them to develop in terms of outsourcing HR. The employees feel that both companies take care of them. Firms can acquire priceless insights about outsourcing HR that could be used afterwards to maximize the efficiency of this process.Wojciech Kozak, senior developer at HeroDOT
#5 & #6 HR OUTSOURCING PROBLEM
- “Our employee is extremely dissatisfied with working for the outside company. He didn’t expect so much trouble and inconvenience”.
- “The company isn’t happy with the person they outsourced from us. They complain. What should I do?”
- Act as a mediator. Don’t stand clearly on either side. Try to work out the best solutions for everyone.
Outsourcing human resources to your business partners puts you in the role of an intermediary. In case of any problems or issues, you should take responsibility and act as a mediator. Don’t stand clearly on either side if there’s no evidence that one party is entirely guilty. Be patient. Get to know the situations. Discuss it with your employee and your partner. Try to work out the best solution that will be good for everybody.
Do your best to fully understand the problem, even the most hidden issues underneath. Remember that you want to work out the best long-term solutions, and every piece of information may significantly influence your decisions in the future. Listen to the employee and your business partner. Analyze. Change your strategy if needed.
#7 HR OUTSOURCING PROBLEM
- “Our employee is coming back from another company. We don’t have another project for him yet. What should we do?”
- Give your employees a safety cushion. Take care of them. Manage the resources with a long-term perspective.
Human resources are an essential part of your company. Treat each of your employees in the way that you would like to be treated. Make sure they feel safe in your company. Create an awareness in their minds that they will never be left alone. Offer them a safety cushion if needed. Remember that the costs of educating new specialists are always higher than the costs of keeping the good ones for some time without any particular responsibilities.
I had been working as an “outsourced employee” in a particular company for two years when the official information appeared they had no more money to invest. It meant that all of my colleagues and I were left without work. Next Monday I came back to my mother company - HeroDot. After three weeks, I was working on a new project.Jerzy Puchalski, senior developer at HeroDOT
It would be best if you remember that outsourcing HR is a massive challenge for every side taking part in this transaction. On the one hand, one small mistake may have long-term, detrimental effects on your company’s performance and atmosphere. On the other hand, a proper attitude, preparation and system might bring new, not yet discovered profits to your company.
Do you know any other best practices for HR outsourcing? Share them with us!