All discussion 2

IND502M5Outsourcing.pptx

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Instructions

Begin by reading the Introduction on slide 2. Then, read through the remaining slides, selecting (Ctrl + Click the link) each outsourcing option that is the best solution based on the Parks and Recreation Department scenario. Once you have completed going through the slides then return to the M5.2 discussion and complete Parts I & II.

IND501: Outsourcing

You are the Director of the Parks and Recreation Department of a mid-size county.

Your county has experienced lower than expected revenue due to a recent economic down-turn. Your state is dependent on taxation revenue from the oil and gas industry and shortfalls are anticipated. Human Resources and Employee Benefits have traditionally been provided in-house.

However, due to the economic downturn and the retirement of key staff within both offices, you have been tasked with either outsourcing human resources and employee benefit provision instead of replacing key staff. Remaining staff within the dissolved office will be moved to other offices within the department.

Introduction

IND501: Outsourcing

You anticipate staff will be happy with your decision because you will not need to let go of any current employees and you will still be providing the needed services.

The services will simply be provided by staff outside of our organization.

Option 1

Outsource Human Resources to a staffing company. The company would provide all hiring and onboarding for Parks and Recreation.

Option 2

Outsource Employee Benefits to a broker. The broker will develop and manage the benefits package which includes health insurance, retirement, and wellness programs.

Initial Scenario

IND501: Outsourcing

IND502: Outsourcing

Due to the retirement of the long-time Human Resources Manager at the Parks and Recreation department and impending budget cuts, you moved forward with outsourcing selection and hiring of new staff.

At this point you have two options to outsource Human Resources:

Option 1

Issue notice to staff that Human Resources will be outsourced. All Parks and Recreation staff will receive an email that with the retirement of the HR Manager and budget shortfalls, all hiring and selection of employees will be outsourced.

Option 2

Conduct focus groups with department staff to explore costs and benefits of outsourcing. Staff will receive an invitation to take part in focus groups and round tables to explore outsourcing human resources.

Option 1

IND501: Outsourcing

IND502: Outsourcing

You have moved forward with the plans to outsource Human Resources. You provided details of on what company will be providing services and that five staff members within the office will be moved to different positions across the department. You have provided staff information on how the change saves jobs while still providing needed services. You were rational and logical.

What do you think happened as a result of your announcements?

Option 1

Employee Job Satisfaction: Employees are shocked and angered at the decision to outsource HR. Employees feel anger, disappointment, and fear that their positions are also at stake. The way the decision was made and communicated made the situation worse. How does this impact employee job satisfaction and engagement?

Option 2

Organizational Commitment: Employees are shocked and angered at the decision to outsource HR. A long-time HR employee had anticipated being promoted to HR Manager. The abrupt announcement leaves the employee wondering if their commitment and years of hard work were wasted. How do you think this impacts employee organizational commitment and engagement?

Option 1.1

IND501: Outsourcing

IND502: Outsourcing

There was much resistance, anger, and distrust after the initial announcement to staff that offices would be closing, and service delivery would be changing.

As Parks and Recreation Director you assign staff from across the department to a project to develop alternative solutions.

Option 1.1.1

IND501: Outsourcing

IND502: Outsourcing

There was much resistance to the initial announcement to staff that Human Resources would be outsourced. Budget shortfalls require innovative solutions and strategic thinking.

However, leaders must be aware of how employee engagement is impacted by outsourcing efforts. Employee engagement impacts team performance.

Reading prompt:

Gallup offers many resources for leaders on employee engagement. Read this article about employee engagement and team performance.

Option 1.1.2

IND501: Outsourcing

IND502: Outsourcing

https://www.gallup.com/workplace/321032/employee-engagement-meta-analysis-brief.aspx

Before moving forward with plans to outsource Human Resources, you reach out to employees to advise them of budgetary shortfalls. You provided details of how outsourcing HR could lead to significant cost savings. You have provided staff information on how the change saves jobs while still providing needed services. Before moving forward with any decisions, your schedule focus groups and roundtables to discuss outsourcing HR with staff.

What do you think happened as a result of your announcements?

Option 1

Employee Engagement: Employees are concerned about outsourcing Human Resources. HR service were traditionally provided in house. However, employees feel valued that department leaders are seeking their input before moving forward with any final decision. How does this impact employee job satisfaction and engagement?

Option 2

Organizational Commitment: Employees are concerned about outsourcing Human Resources. HR service were traditionally provided in house. However, employees trust leadership to listen to concerns and feedback on the outsourcing decision. How do you think this impacts employee organizational commitment and engagement?

Option 1.2

IND501: Outsourcing

IND502: Outsourcing

Despite the concern about closing the HR office within the department, staff felt valued that department leaders were going to allow them to be a part of the decision-making process.

As director, you want to keep your entire department engaged and motivated.

Option 1.2.1

IND501: Outsourcing

IND502: Outsourcing

https://www.gallup.com/workplace/321032/employee-engagement-meta-analysis-brief.aspx

You are worried about employee loyalty, or organizational commitment, being negatively impacted by the announcement that in-house services would soon be outsourced. You do not want to lose any additional staff as a result of outsourcing.

Option 1.2.2

IND501: Outsourcing

IND502: Outsourcing

https://www.gallup.com/workplace/321032/employee-engagement-meta-analysis-brief.aspx

Due to the retirement of the long-time Employee Benefits Coordinator at the Parks and Recreation department and impending budget cuts, you moved forward with outsourcing employee benefits to a broker.

At this point you have two options to outsource Employee Benefits:

Option 1

Issue notice to staff that Employee Benefits will be outsourced. All Parks and Recreation staff will receive an email that with the retirement of the Employee Benefits Coordinator and budget shortfalls, all employee benefits will be outsourced.

Option 2

IND501: Outsourcing

IND502: Outsourcing

You have moved forward with the plans to outsource Employee Benefits. You provided details of on what company will be providing services and that one staff member within the EB office will be moved to the Human Resources Office since the office is short-handed. You have provided staff information on how the change saves jobs while still providing needed services. You were rational and logical.

What do you think happened as a result of your announcements?

Option 1:

Employee Turnover: Employees are shocked and angered at the decision to outsource Employee Benefits. Employees feel anger, disappointment, and fear that their positions are also at stake. The way the decision was made and communicated made the situation worse. However, the Employee Benefits Office is the smallest office within the department and has traditionally been a part of HR. How does this impact employee turnover and employee engagement?

Option 2

Absenteeism: Employees are shocked and angered at the decision to outsource Employee Benefits. The remaining employee, with years of experience in employee benefits, begins to look for jobs in other county agencies. How do you think this impacts absenteeism?

Option 2.1

IND501: Outsourcing

IND502: Outsourcing

Employee buy-in is important when an organization is making any change plans. As director, it is your job to make sure employees buy-in to the need for outsource services.

Option 2.1.1

IND501: Outsourcing

IND502: Outsourcing

https://www.gallup.com/workplace/321032/employee-engagement-meta-analysis-brief.aspx

Absenteeism can be an unfortunate result of outsourcing. Absenteeism results in staff routinely being away from work. Increased absenteeism results in services/goods not being provided or other employees picking up the slack.

Option 2.1.2

IND501: Outsourcing

IND502: Outsourcing

https://www.gallup.com/workplace/321032/employee-engagement-meta-analysis-brief.aspx

Before moving forward with plans to outsource Employee Benefits, you reach out to employees to advise them of budgetary shortfalls. You provided details of how outsourcing Employee Benefits could lead to cost savings. You have provided staff information on how the change saves jobs while still providing needed services. Before moving forward with any decisions, you schedule focus groups and roundtables to discuss outsourcing Employee Benefits with staff.

What do you think happened as a result of your announcements?

Option 1

Organizational Commitment: Employees are concerned about outsourcing Employee Benefits. However, employees feel valued that department leaders are seeking your input before moving forward with any final decision. How does this impact employee organizational commitment?

Option 2

Trust: Employees are concerned about outsourcing Employee Benefits. However, employees trust leadership to listen to concerns and feedback on the outsourcing decision. How do you think this impacts employee organizational commitment and engagement?

Option 2.2

IND501: Outsourcing

IND502: Outsourcing

Outsourcing can often be a good way for organizations to maintain needed services and save money. Benefits of outsourcing include cost saving and having access to greater levels of expertise.

Option 2.2.1

IND501: Outsourcing

IND502: Outsourcing

https://www.gallup.com/workplace/321032/employee-engagement-meta-analysis-brief.aspx

The focus groups were successful in helping staff understand the problem and explore the costs and benefits of outsourcing Employee Benefits. The activity helped improve organizational commitment by building trust be employees and leadership.

Option 2.2.2

IND501: Outsourcing

IND502: Outsourcing