Outsourcing is the name of the game these days. As companies battle for increased bottomline and less cost, many companies are seeing the value of outsourcing and operating only with some key workforce.
HRO Today Magazine shared the dilemma faced by people in Human Resource, especially when human resource is outsourced (HRO). The new term for this is recruitment process outsourcing (RPO). The issue was about what metrics to use, how to handle gargantuan data that go with staffing or recruiting, and how much will each recruitment cost. With the onset of RPO, many consultants are vying for those companies who decide to oursource their staffing needs. The slogan is always like, “reduce your organization’s cost-per-hire” and eventually optimize your metrics. Read more…
After all the discussion about cost-per-hire and metrics madness, I like how the article ended:
In the era of HRO, if you are using an outside multi-process BPO player or an RPO firm, you should insist they approach the staffing process with the same strategic perspective, level of care, and commitment to quality you’d want internally. Make sure they have the tools to provide a quality-of-process and a quality-of-hire. Also, measure the overall staffing costs and the cost to maintain organizational headcount (SOPQ) and judge the provider on that metric. Remember, cost-per-hire does not tell you anything, and the benchmarks are flawed at best. Perhaps you should hang a sign in the staffing department that reads “It’s about the Quality, Stupid.”
I agree, quality of hires should not be compromised for the sake of cutting down on cost and increasing bottomline. I’m thinking that Six Sigma may just play a major role in here. If you also think so, read my other posts on Six Sigma, Human Resource.
*Photo credit: MorgueFile.com
