| Esi Hamilton is the savvy young Manager in charge of | | | | compensation, dispute resolution, health & safety |
| Human Resources and Administration in a medium | | | | and HR policy manuals. SSO entails use of support |
| sized bank with 5 branches in Ghana. She manages a | | | | staff to perform non-core functions from Executive |
| staff strength numbering 370 from the management | | | | Assistant, Secretaries to Drivers and Cleaners. |
| team to domestic staff. Since joining the bank ten | | | | In another development, HR Outsourcing service is |
| months ago, she has implemented several innovations | | | | usually grouped into four broad-based categories |
| to transform the face of human resource | | | | namely PEOs, BPOs, ASPs and e-services. PEO |
| management. Recently, she has been paying attention | | | | means Professional Employer Organization. BPO |
| to the effectiveness and own-and-manage cost of the | | | | means Business Process Outsourcing. ASP means |
| semi- and low-skilled workers, which constituted 25% | | | | Application Service Providers and of course, |
| of her workforce with its attendant implications on the | | | | E-services. SSO falls under the PEOs because the |
| bottom line. Now, she is thinking about outsourcing their | | | | provider organization owns the employees it deploys |
| services. | | | | to perform non-core duties in the offices of the client |
| It is a bright morning. Esi has just finished a 30-minute | | | | organizations. |
| extensive meeting with an HR Outsourcing consultant | | | | Client organizations who adopt and implement SSO |
| who spoke elaborately on Support Staff Outsourcing | | | | service model in services sector in any developing |
| service and the need for her bank to consider | | | | economy should expect a dividend in service delivery |
| outsourcing its semi- and low-skilled workers. She | | | | quality, cost reduction and increased productivity. |
| watched the consultant walked out of her expansive | | | | Provider organizations deliver value for money. Quality |
| office, sipped her cappuccino and tapped her pen | | | | in service delivery is a critical aspect of the |
| softly on her table. She paused, looked at the little | | | | performance measurement. The Service Level |
| sunflower sitting on the top right edge of her table and | | | | Agreement (SLA) will spell out the terms, conditions |
| smiled. She turns slightly and begins to work her fingers | | | | and expectations of service execution and both |
| on the tablet keyboard? What really is Support Staff | | | | parties in the SLA are obliged to perform their |
| Outsourcing? Is it any different from HR Outsourcing? | | | | commitments. Client organization is certain to |
| What value does Support Staff Outsourcing add to | | | | experience improvement in the context of its non-core |
| my bottom line? Is my organization better off without | | | | service delivery in terms of quality of employees, |
| Support Staff Outsourcing? Why should I consider | | | | turnaround time and customer service. If a client |
| Support Staff Outsourcing for my organization? Esi | | | | organization is not enjoying this benefit, then the |
| ponders over these FAQ and urgently requires | | | | provider organization is incompetent. What has |
| answers to enable her develop a proposal to her | | | | happened is that the client organization has |
| Managing Director for the bank to implement Support | | | | successfully created layers of inefficiency in its |
| Staff Outsourcing service to drive its human resource | | | | structure and the cost of managing such inefficiency |
| strategy. | | | | and its exit will weigh down the objective of adopting |
| Traditionally, Craumer (2000) surmised that outsourcing | | | | and implementing SSO service. |
| which was originally perceived as the "ho-hum tactic | | | | A recent survey a universal bank revealed that it could |
| for reducing the costs of back-room functions such as | | | | save 45% in costs (both direct and indirect) if it |
| payroll and IT" metamorphosed into a critical | | | | decided to outsource an aspect of its operation |
| management tool "in the early 90s as companies | | | | functions that was managed internally by the bank's |
| began to outsource more strategically significant | | | | core staff. A whopping 45%! What else can any |
| functions such as manufacturing and logistics, and | | | | organization bargain for? Why should a client |
| even product design and other innovation-related | | | | organization pay more by direct own-and-manage |
| activities." | | | | model when the non-core function can be outsourced |
| Support Staff Outsourcing (SSO) as a branch of | | | | for value? Also, SSO service also has the in-built |
| outsourcing is defined as a management decision | | | | capability to predict a controlled future costs. The |
| whereby a client organization contracts out from within | | | | budget for contract and administrative fees can be |
| its operations its non-core support functions to an | | | | planned to circumvent inflation with growth margins in |
| expert provider organization that will deploy its own | | | | order to determine exact future costs. |
| employees to carry out these functions in the offices | | | | An organization can drive top-line performance, |
| of the client organization. There are three parties | | | | increase its organizational capacity and operational |
| involved the SSO process namely the client | | | | efficiency if it concentrates its resources of its core |
| organization, provider organization and the outsourced | | | | business. SSO service engenders improved |
| employees. These three parties play different but | | | | productivity for the client organization. The client |
| equally important roles in the successful implementation | | | | organization focuses its ability on harnessing and |
| of SSO. SSO service usually fails and its objectives | | | | developing the potentials of its core employees |
| faltered in organizations when one of the parties, | | | | converting them into sources of competitive |
| particularly the outsourced staff is not effectively | | | | advantage that yield long-term benefits. In partnership, |
| cultivated within the scope of the Service Level | | | | the provider organization deploys its own core |
| Agreement between the client organization and | | | | competencies to support the client organization to |
| provider organization. | | | | deliver on its non-core business areas. SSO service |
| In SSO service, the client organization takes off its | | | | offers the HR Managers the flexibility and innovation |
| non-core business activities. The provider organization | | | | they require to drive their HR agenda to achieve |
| sends in its own trained employees to discharge these | | | | optimum degree of strategy execution and |
| non-core functions of the business operations of the | | | | organizational effectiveness. |
| client organization. The scope of the non-core business | | | | Some HR Managers argue that drawbacks of SSO |
| activities varies from organization to organization | | | | service far outweigh the benefits. Is there a merit in |
| depending on its size, nature of business, and market | | | | this argument? Can the quality of service rendered by |
| competitiveness. The non-core areas usually | | | | employees who are not no the payroll of the client |
| outsourced cover functions such as Secretaries, | | | | organization guaranteed on a continuous basis? Will |
| Guest Relations Officers, Receptionists, Administrative | | | | there not be disparity in remuneration and welfare of |
| Assistants, Call-Centre Executives, Franchise | | | | employees of both organizations in the SSO service |
| Marketing Officers, Mailing Clerks, Cleaning Services, | | | | model? Can the employees of the provider |
| Sales Representatives, Clerical Duties, IT Support | | | | organization demonstrate enough work ethic or loyalty |
| officers, Drivers, Dispatch Riders, Security Officers, | | | | in tandem with the vision and mission of the client |
| Tellering and Bulk Tellering Staff (in financial institutions), | | | | organization? Can the provider organization continue to |
| etc. | | | | supply quality staff to the client organization? |
| It is commonplace in developing economies to widely | | | | Can the provider organization vouch for the integrity of |
| engage the services of support staff for non-core | | | | data and safety of information its employees handle in |
| functions in organizations across the services and | | | | the client's office? Will client organization enjoy high |
| manufacturing sectors because these functions are | | | | level of commitment to exceptional quality service and |
| largely executed with little or no automation. The | | | | customer care from the employees of the provider |
| percentage of engagement in the public services | | | | organization? Will the employees of provider |
| sector, which is the oldest and largest employer of | | | | organization deployed to the offices of the client |
| labour, is relatively high. Players in the services sector | | | | organizations well paid to avoid disruptive exit and |
| are challenged by globalization, technology and | | | | defection to competition? How will Labour |
| constant changes in consumer preference to deploy | | | | Commissions and Human Right protection agencies |
| their capital to acquire resources (technology and | | | | interpret the tripartite relationship of the parties in SSO |
| process) in areas of high impact like IT, strategy and | | | | service - casualization of labour, exploitation or |
| core human resources to develop capacity for | | | | contract staffing? What are the legal implications of |
| organizational effectiveness. Under this circumstance, | | | | adopting the SSO service model? How does the |
| less attention is given to non-core activities, and the | | | | provider organization handle the security issues |
| managers of these non-core activities in Business | | | | regarding the client organization giving the employees |
| Support, Admin or Human Resources Department are | | | | of the former access to the sensitive information |
| constantly under excruciating pressure to perform with | | | | belonging to the customers of the later? How does |
| little results to show for their efforts. | | | | the provider organization mitigate against hiring, |
| Chief Executive Officers want results. They cannot | | | | character and competence risks of its employees |
| understand why their Human Resources or Admin | | | | before deploying and whilst serving in the client's |
| Department are under-performing and slowing down | | | | organization? |
| the pace of work. Now, Admin or HR Managers | | | | A well-articulated and carefully implemented SSO |
| should realize that their traditional role of providing | | | | service is designed to anticipate the objections |
| administrative support of business services or | | | | identified as drawbacks and punctiliously provide |
| personnel to organizations as a cost centre exists in | | | | avenues to blocking them before consummating the |
| the realm of the past. Contemporary expectations | | | | SSO service contract, and during the period of |
| stipulate that they move Admin or HR Department to | | | | executing the service. HR Outsourcing Consultants or |
| a more strategic role as a profit-thinking function of the | | | | professional lawyers with specialty in outsourcing |
| organization. These Managers should now create new | | | | business services should be engaged to draw up |
| organizational capabilities drawn from a redefinition and | | | | Service Level Agreements (SLAs) to provide a |
| redeployment of HR practices, functions and | | | | platform for determining responsibilities, accountabilities, |
| professionals that leverage of the core competencies | | | | deliverables, performance measurements, exceptions |
| of their organizations. So, what should they do with | | | | and exit clauses. The decision to use SSO service is |
| their non-core operations? Strategic planning for | | | | an investment. If the client organization gets it right and |
| market competitiveness demands that these non-core | | | | the provider organization implements it in line with the |
| functions are outsourced to reputable and competent | | | | SLA, it will translate to high yield and remarkable |
| provider organizations that have the core capabilities to | | | | profitability in terms of service delivery, customer |
| deliver results in non-core areas for the client | | | | retention and revenue generation. |
| organization. | | | | SSO service works for any size of organization. Any |
| Inadequate knowledge of HR Outsourcing has made | | | | organization that has more than 20% of its workforce |
| many practitioners and users of the service to | | | | as support staff discharging non-core business |
| assume that HR Outsourcing is Support Staff | | | | activities should consider SSO service. SSO service |
| Outsourcing (SSO) and vice versa. For the benefit of | | | | will relief HR Managers and allow them to focus on |
| doubt, HR Outsourcing is a body of outsourcing | | | | more strategic issues as the provider organization see |
| services covering Payroll Administration, Employee | | | | to the welfare and performance of own personnel |
| Benefits, HR Management, Risk Management and | | | | carrying out non-core functions in the client |
| Support Staff. SSO is an integral part of HR | | | | organization. |
| Outsourcing but not the totality. Non-core functions that | | | | It is time to outsource support staff when the HR |
| can be outsourced in Payroll Administration include | | | | Manager is inefficient because she is saddled with |
| Annual Leave compilation/computation, taxes advisory | | | | administrative duties of personnel management. It is |
| implementation, payslips issuance/distribution, etc. | | | | time to outsource support staff functions when |
| Employee Benefits are Health, Medical Claims | | | | service is poor and the cost of hiring and maintenance |
| verification, Canteen Services, Employee Satisfaction | | | | of the personnel is high. The only point the client |
| Survey, etc. HR Management includes recruiting, hiring | | | | organization losses is its point of inefficiency. |
| and firing, pre-hire background checks and interview, | | | | Shareholders, investors and CEOs want value for |
| exit interview, salary survey, manpower planning and | | | | money in investment in human resources. SSO service |
| workflow planning. Risk management covers workmen | | | | model delivers this value. |