Today we will explore the concept of outsourcing and its effect on workplace satisfaction. Hopefully, this knowledge will provide a foundation for improving performance in your organization. Outsourcing is a term that is also referred to as Business Process Outsourcing (BPO). It is the process of hiring the services of another company or individual, either internationally or domestically, to handle various business activities on behalf of your company. Outsourcing is a very common business practice today that makes it possible for a medium and small-sized business to gain various skills and services that they would otherwise find hard to develop, because of their manpower and/or financial restrictions. Undoubtedly, outsourcing comes with both advantages and disadvantages in the organization. When handles properly, outsourcing payroll can have a positive end in that it allows the business to cut on costs while improving its efficiency. However, the implementation of any outsourcing solution comes with change management. Change is an uncomfortable and disruptive process, and it could have a negative effect as far as the workplace satisfaction is concerned.
Through outsourcing, it will be possible for you to grow your business when and as you need to, without making any major investment. It also enables the business to focus on its core competencies, improve efficiency, and most importantly, cut costs, in a hassle-free manner (I-Admin, 2018) . We will look into four factors that you should keep in mind when opting for outsourcing payroll in your organization:
Delegate your assignment to our experts and they will do the rest.
Negative Emotions
In most situations, outsourcing usually translates to job loss for a number of employees. It can be especially hard in a medium and small-sized business where the employees have created a close friendship among themselves, the friends of the employees whose services were outsourced could have a hard time dealing with the reality. Besides, it is normal for the remaining employees to live in worry, wondering if their own jobs are at risk of being outsourced. In this case, communication and transparency are very essential to help alleviate employee concerns. Try your best to openly communicate the reasons behind you’re your choice to outsource, the expected benefits, the process of implementing the change, and whenever possible, any additional outsourcing that you are planning. The communication should be aimed at enhancing a sense of loyalty between the remaining employees and the company.
Practical Concerns
All (or maybe most) of your employees will not work without compensation, and this means that changing the manner in which they get paid is pound to result in anxiety. According to (BigOutsource, 2018), the best was t o alleviate this anxiety is to explain the step that you followed to vet the vendor, the mechanisms that you have put in place to ensure that every employee gets paid their fair dues and on time, the protocols that you have installed to ensure protection of the employees’ personal data, and the actions the employees can take in case of a problem. Basically, it is important to let your employees know that you have put thought and care into the decision to outsource services and that there are proper plans in place for the possible contingencies.
Benefits
In most cases, outsourcing payroll is usually very instrumental in the improvement of employee satisfaction. For instance, some third-party providers offer self-service capabilities where employees can log in to do various crucial activities like check their benefits, change their address, request leave time, among others. Besides, an online portal can greatly reduce the time-consuming paperwork. Besides, in case of a problematic payroll when being handled in-house, you can always point out the manner in which it will run more efficiently when outsourced (Mintz, 2018) . That is it for our discussion on outsourcing and its effect on workplace satisfaction. Hopefully you have gained proper knowledge that will help you imptrove performance in your organization.
References
BigOutsource. (2018). Retrieved from https://www.bigoutsource.com/blog/outsourcing-future-workplace/
I-Admin. (2018). Effects of Outsourcing on Workplace Satisfaction - i-Admin. Retrieved from https://www.i-admin.com/us/en/blog/effects-outsourcing-workplace-satisfaction/
Mintz, S. (2018). Outsourcing Effects Workplace Satisfaction. Retrieved from https://www.workplaceethicsadvice.com/2011/09/outsourcing-effects-workplace-satisfaction.html
