Research on the Human Resources Outsourcing Strategy

Research on the Human Resources Outsourcing Strategy ZHANG kai, XU Jun School of Economics and Management, Henan Polytechnic University Jiaozuo, Henan, China, 454000 lmmxjxj@163.com Abstract Human resources are the primary resources, the concept gradually enjoys popular support in modern society, the human resources outsourcing non-core business, thus enabling enterprises to focus on strategic human resources capacity-building functions, will be the trend of the times. Key words human resources; outsourcing; strategy 1 Introduction The so-called human resources outsourcing, is to corporate human resources management functions of the work of all or part of the outsourced to professional human resource management agencies, for enterprises to achieve cost saving management cost, making human resources of enterprise management more scientific and modern. 2 21 Century Human Resources Management Facing the New Challenges 2.1 The impact on global economic integration and cultural diversity With the regional cooperation organizations such as the European Union, NAFTA, APEC, such as the emergence of the boundaries between nations has become increasingly blurred, and regional economic and even the global economy, is increasingly becoming an integral overall. As a natural consequence of economic integration of the transnational corporations, both faced with a different political system, legal norms and customs, but also promote the mutual understanding of cultures and continuous integration. Managers often encounter similar nationality, cultural background and language are not the same as the staff how to work together to complete, and the management system and work values vary on how to communicate, and other issues. 2.2 The emergence and application of new management ideas and methods Facing with the fierce competition in the market, organizations must continuously improve labor productivity, improve product quality, improve services, new management ideas and management methods also will come into being. For example, the quality team (QC), total quality management (TQM), Business Process Reengineering (BPR), and so on. Among them, business process reengineering is re-engineering (Reengineering) part, it means that the business process, organizational structure of the re-examine and reflect on and recycling. In the last century and the early 1930s, scientific management and behavioral science are similar to the birth of the 21st century, and the emergency of a new management concepts and methods will certainly bring organization and management new vigor and vitality. 2.3 The progress of scientific and technological From the telephone, video conferencing, web conferencing, computer, network technology, such as the development of the enterprise space all eliminate the interval, making the world become more and more "small", the spread speed of information, services and products is becoming much more faster, and provide enterprise new space for development and opportunities. On the other hand, technological advances have reduced the products, services update cycle, intensified the competition among enterprises. Intellectual capital (Intellectual Capital) has direct or indirect access to corporate important source of competitive advantage. Ability to attract, motivate and retain high-quality personnel, enterprises will become the key to the success factors. 475

2.4 The changes in the external environment are accelerating Enterprises must continuously, quickly learning, continuous innovation, and stands ready to adjust its development strategy. Enterprises must not satisfied status quo, to rapid detect the changes in the external environment and make rapid decision-making, and actively look for a new mode of operation. Knowledge-based economy brought about enormous challenges, making enterprises difficult to rely on traditional methods, such as cost, technical, marketing, production and products, and other aspects of the strategy to obtain advantage. Enterprises must rely on its own speed, flexibility, learning ability and high-quality personnel to obtain competitive advantage. 3 The Feasibility of Human Resources Outsourcing Analysis The human resources outsourcing has currently become an inevitable trend, we can be analyses from the following aspects: Human resources management of all functions can be summed up as human resource allocation (including human resources planning, recruitment, selection, recruitment, deployment, promotion, demotion, rotation, etc.), training and development (technical training, potential development, career Management, organizational learning, etc.), wages and benefits (remuneration, incentives, etc.), system development (organizational design, job analysis, staff relations, employee participation, personnel administration, etc.) four major categories. These four broad categories of functions in its course of development will gradually take shape and sound, then as the business changes in the external operating environment, and social development of the special advisory services, these functions will be divided again, part of the functions are bound to the community and transfer to enterprise management service network. The management functions of enterprises are means to achieve operational objectives, in accordance with business enterprise may need to re-divide these tools portfolio in order to meet the specific circumstances of the best management. The four broad categories activities of Human resource management functions are interrelated and are also independent of each other, their different ways of dividing the portfolio and outsourcing in theory is feasible, in business management practice often can be seen. For example, the personnel agency management consulting services for the rapid development of enterprises outsourcing some of its relatively independent of the functions provide more choice. Personnel Agency to file management, social insurance, such as cumbersome title to inform the work of the affairs of human resources management from the transfer out, organizational design, such as ground-breaking work of the functions to the management consulting firm commitment, and so on. Undertake the work of the outsourcing of management consulting firms in general composes a large number of human resource management with deep knowledge of the composition of experts and practitioners, specializing in human resources management research and consulting. They are usually owned enterprises do not have the knowledge and skills and is able to help reduce long-term management costs, so that enterprises can access the new management technology and management thinking and plays a significant role in promoting on the development of enterprises. As a result, the modern enterprise will be more and more dependent on the socialization of management consulting services, such as training development, selection and recruitment of senior staff, staff appraisal of human resources management functions to outsourcing activities of the specialized management consulting agencies. 4 Human Resources Outsourcing Weigh the Advantages and Risks With the growing competition in the market, speed and efficiency of enterprises become the key to survival and development, corresponding for the change in corporate human resources management functions, improve the efficiency require higher level and human resource management outsourcing is increasingly show its importance and necessity. Human resources outsourcing advantages are mainly embodied in the following areas: 476

4.1 Gather strategic human resources functions building Will be outside the core competence of To bring the business outside the core competence is the enterprises advantages of outsourcing theory demonstrates, outsourcing human resource makes managers concentrate on more strategic human resources functions building. Some research shows that human resources management activities in the affairs activity or traditional activities, usually occupy the entire human resources management activities about 65% -76%, while direct impact on the enterprise's long-term development of the strategic human resource management activities accounted for only 30% around. If human resources outsourcing, is generally believed that at least 50 percent by reducing transaction -60% of the human resources work load and switch to focus on strategic focus on building human resources functions [2]. Hewitt consulting company from the same data show that through outsourcing so that enterprises are more focused on their core competitiveness, enterprises can seek the best interests. 4.2 Master professional management and services, access to advanced professional and techniques Another reason why more and more companies using the human resources outsourcing is that senior managers find themselves being faced with regulations, policies, finance, technology, corporate governance and risk. Those provided by the professional quality of human resources management services, is required by managers, with the help of an effective role of "brain", to avoid risks to achieve reasonable results. In addition, the human resources functions are gradually changing from the traditional to a modern, in the 21st century knowledge and technology dominate the destiny of the era, the successful operation of human resources functions, and need strong investment support in technology. For example, the human resources functions through the implementation of technical resources to update or ERP system; need to provide electronic human resources management procedures; need for timely develop related software applications and platforms, for staff and managers to provide more human services need to build up a database and knowledge management System, effective use of employee data, and so on. The need for major investment, outsourcing agreement to provide a continuity of access and have the latest technology, not only for outsourcing service providers continuing to provide the latest systems and technology, and the investment costs can be avoided. 4.3 Control operating costs Many experts believe that another advantage of implementation of human resources outsourcing is that can effectively control operating costs, due to outsourcing of services can improve human resources management procedures performance, and sustained investment companies do not have to maintain the advanced human resources system and service platforms, operating costs, so the overall costs decline. Of course, this point will be more controversial, we believe that the cost here is a broad notion of corporate costs and not just the direct payments to the employees salary and benefits costs, in fact, it include computer hardware, software systems, as well as maintenance in office, management fees, training and development costs and employee turnover caused by a number of risks, and so on. In addition, if the time of human resources management departments is counting the cost, control operating costs through outsourcing the advantages of the more obvious. Of course, it is undeniable that human resources outsourcing there are still many potential risks. We should face up to the objectivity of these risks and take active preventive measures. First of all, the main human resources outsourcing and the outsourcing partner is an information asymmetry between the trading markets, there is a game between them. At present the situation is quite common human resources outsourcing partners this market is a mixed market. Many consulting firms or quality of service practitioners, the degree of specialization, and other aspects of popular challenge to meet the requirements of the main outsourcing; famous comparison of the foreign consulting firms and professional bodies on the one hand asking price is too high, so that the main hard look at outsourcing To clear the effect of cost control, the other institutions because of outsourcing different national conditions, different cultures often have the consequences, and foreign cultural values and corporate culture may also have the conflict, making the same effect was not obvious. This constitutes the most 477

prominent human resources outsourcing the potential risks. Second, the human resources outsourcing is a new thing, China has no perfect laws and regulations to standardize the main outsourcing partners and outsourcing between the rights and obligations, making outsourcing services worried about the safety of people. As a decrease of corporate outsourcing of human resources a lot of the work of the monitoring, once the outsourcing partners have a lot of the main outsourcing of information, confidentiality, the main outsourcing is bound into a passive, this risk is obvious. 5 The Specific Analysis of Human Resources Outsourcing Strategy 5.1 The training of human resources outsourcing Many companies in the success of the process, training plays an important role, it is beyond doubt. World-renowned Dow Chemical Company, Edward Jones companies, and Southwest Airlines is considered to be the leader in its industry, is the world an example of successful enterprise management. Their success is one of the important reasons because they are very concerned about the growth and development of staff, through the training of the staff increase the competitiveness of enterprises. With the business-to-staff training to increase the degree of outsourcing and the development of the industry, many companies found that effective use of external specialized company to train staff of enterprises than large enterprises to support the training of the more practical and improve efficiency. Outsourcing is indeed changing the way the Human Resources Department operations. From the traditional internal implementation of all human resources activities of the company continue to rely on outside contractor. At present, many companies are increasing each year training and development activities of outsourcing; hope to be able to implement a large-scale, better staff training at the same time as control of the area of training expenditure [4]. With regard to training related to the effectiveness of outsourcing results, available from the following factors to consider: First is also foremost important, and the contractor to establish a relationship of mutual trust. If it is possible with the contractor to share business information, the establishment of the operations of the implementation process, to establish the best long-term relations of cooperation. Establish a correct move of outsourcing. Some companies use external training; the motivation is to cost savings. If you only care about how much money saved, and do not care about the harvest of the number, that is, the analysis was not built on cost - efficiency ratio, as well as training and shaping their core competitiveness on the connections between, to improve the quality of training is indeed difficult. To set clear and comprehensive contract. To insure that you and the training department sign agreement covers all parties and a clear responsibility to provide clear performance expectations, the list did not meet the needs should be subject to penalties and compensation issues. 5.2 Outsourcing pay The goal of outsourcing pay: Before deciding on outsourcing, to assess the current state of pay and outsourcing clear what role is essential. In addition, as cost control and the core competitiveness of these focus on the benefits of extensive outsourcing, organizations which have specific objectives, clear objectives can be considered as outsourcing. The cost estimates of outsourcing pay: Outsourcing often pay large employers to help improve the operating capacity and cost savings, but the contractor's price will vary, or even cost structure similar to the contractor in the provision of services also are vastly different, they compare the cost of scheme Determine the real cost is very difficult. Must be asked whether the contractor's pricing structure requires each contractor estimated the cost will be added to the total cost, this is conducive to price, the price list will be provided for determining the cost of great help. In addition, the need to clear those associated with the termination of the penalty fee. Assessment of the contractor: As salaries in human resources will be involved in the business of a number of sensitive issues, in the choice of outsourcing the security and reliability at a very crucial, in establishing ties with the contractor before outsourcing to understand the situation is very important. To 478

clear his company's history, the owner status, pay outsourcing business in the length of time and the Company in its contracting business income as a percentage of the number, are reflected its strength and reliability basis. In addition, its financial position in recent years and profit situation is of concern to the area. As pay management is a systematic project, the contractor's system to assess the ability to work, in fact that is of concern in all aspects of its adaptability, because in addition to organizational changes, mergers and acquisitions, usually by salary from the government directive, Tax law, trade association, various enterprises, and many other stakeholders in the ever-changing external factors. Contracting companies to grasp the system and weigh these factors and the ability of the system change and the changes related to the cost of adaptation is also very important measure. If possible, you can consult some of the best (and outsourcing, has worked with) persons or companies. In addition, you can also consult with some of the recent start of business customers, and outsourcing to cooperate to achieve a fiscal year with the customers and pay systems in the years of cooperation, so as to obtain more comprehensive information, a full assessment of the contractor and Select. References [1] Huang Yufang. Personnel outsourcing: SME human resources management to the new trend [J]. Modern Management Science, 2007. (7) (in Chinese) [2] Guan Peilan, Hu Zhilin. Human resources outsourcing management [J]. Enterprise Management, 2006, (2) (in Chinese) [3] Zhu Lili, The perspective of human resources management outsourcing [J]. Financial market magazine Forum, 2003, (6) (in Chinese) [4] Mary F Cook. Human resources outsourcing strategy. China People's University Press, 2005. [5] Huang XunJing. Human Resources Development and Management, 2007, (1) (in Chinese) 479