In today’s competitive business world, staff outsourcing has emerged as an important strategy for many organizations. With the increase in demand for remote working, organizations have begun to outsource staff as per their necessity.
The main objective behind outsourcing is to help businesses achieve their goals with minimal operating costs and losses.
What is staff outsourcing?
Staff outsourcing also known as employee outsourcing is a business practice of outsourcing employee services to third parties. Here, the third party performs the tasks that include the overall recruiting process that was initially performed by HR managers. This is one of the powerful tools that help businesses improve performance, save costs, recruit highly trained professionals, and prioritize their focus on core business activities.
How does staff outsourcing work?
Staff outsourcing is a simple process where a client company works with third parties such as outsourcing companies or agencies to streamline their business activities. Here’s how staff outsourcing works:
Identify Needs: The first step of staff outsourcing is to identify the staffing needs of the client company. This may include if the company needs full-time employees, freelancers, temporary or contract-based employees.
Select an Outsourcing Service: Once the client company decides on its actual requirement, it selects an outsourcing company or agency to work with.
Define responsibilities: The client company clearly defines the roles, responsibilities, qualifications, skills, employment type, and other requirements of the outsourcing agency.
Create Job description: Depending on the information provided by the client company, the agency creates a job description to meet the requirements of the client.
Job Posting or Advertisements: Outsourcing agencies post jobs or advertise them on different platforms like social media, job portals, websites, and other job-searching platforms. This helps the agency to source the right candidates.
Recruitment and Screening: The outsourcing agency will look after the overall recruitment and screening process. This includes candidate sourcing, reviewing resumes, and scheduling an interview date for candidates.
Candidate Selection: The outsourcing agency shares the selected list of candidates with the client company for the interview and selection process.
Onboarding: Once selected, the outsourcing agency will have to carry out the onboarding process where they need to conduct orientation sessions that include the organizational structure, culture, vision, and mission of the client’s company. If necessary the agency must provide required training to the new employees as well.
Tracking Performance: Once hired, the client company analyzes the overall work performance of the employee hired through an outsourcing agency.
Payroll Management: The outsourcing agency needs to handle the overall payroll of the employees hired through them.
Contractual Agreement: Both parties are bound by a contract that clearly defines the terms and conditions, payment terms, work duration, and more. These contracts can be on a project or yearly basis.
Reviews: This part includes friendly feedback from both parties to make their services smooth and effective in the future.
What are the KPIs measured?
Outsourcing KPIs help businesses measure the efforts of the agency to meet the expectations of the client company. This further leads to making an informed decision and identifying the areas for improvement. Here are some of the common KPIs measured in staff outsourcing:
Qualified applicants: This metric evaluates the quality of applicants given to companies.
Quality of work: This assesses whether the outsourcing agency meets the deadline and provides quality services on time.
Customer satisfaction score: This indicates the score of customers who are satisfied with the agency’s services.
Candidate satisfaction: This assesses the satisfaction of job seekers, who have been placed by outsourcing companies to other companies.
Cost-per-hire: This includes the fees charged by outsourcing companies for advertising, sourcing candidates, and posting a job vacancy.
Actual cost: This assesses the total amount spent on an outsourcing project.
Human capital return on investment: This metric assesses the financial value added by employees.
Attrition Rate: This assesses the rate at which outsourced employees leave their positions.
Retention rate: This assesses the percentage of outsourced employees that work for the company after being placed by the agencies.
Number of Projects: This assesses the number of projects completed by an outsourcing company within a specific time period.
Training Completion: This indicates the percentage of outsourced employees who have completed the required training provided either by the agency or client company.
Why Nepal for Staff Outsourcing?
Nepal can be the ideal choice to outsource staff since it offers a large pool of skilled and qualified individuals from many fields such as healthcare, engineering, business, information technology, hospitality, and more.
It is well known that Nepal has a cheap living cost as compared to Western countries. This cost advantage might benefit companies seeking to outsource employees for various sectors. Also, the time zone of Nepal can be a plus point for businesses that need real-time collaboration with the team.
Further, the majority of Nepalese individuals are well-educated and proficient in English, which is the most in-demand skill in the international marketplace. This might be the icing on the cake for businesses seeking to employ Nepalese candidates.
In addition, Nepal has different educational institutes that offer courses in technology, management, hospitality, and more. This increases the availability of skilled individuals who are prepared to engage in outsourcing activities.
Why Kantipur Management for Staff Outsourcing?
Kantipur management provides different staff outsourcing services that include project outsourcing, offshoring, onshoring, IT outsourcing, and more. Depending on the company’s nature, these services can be customized as per the needs and demands of the client company.
Kantipur Management helps businesses save time and provides a wide pool of talented individuals with a diverse range of skills and experiences. Since Kantipur Management handles the overall recruitment process, it further helps businesses mitigate certain risks.
Apart from this, Kantipur Management has an expert team who help to bridge the gap between employers and job seekers. Their team provides around-the-clock support, handles conflicts, and communicates with clients frequently. Further outsourcing companies like Kantipur Management are often aware of business laws and compliance standards which can assist businesses to address complicated legal and regulatory settings.
Apsara Upreti, Sr. HR Officer | Kantipur Management Private Limited