Create Your Own Pool of Employees Date:   Monday , September 26, 2016 Headquartered in Mumbai, LIFT Academy weaves customized training programs in order to fulfill client specific needs. This NSDC affiliated training partner proffers Logistics & Warehouse Operation through Logistic Skill Council and hospitality related programs through Tourism and Hospitality Skill Council (THSC). The service economy depends a lot on people who deliver the services. Most of the people employed for delivering the services are at the bottom of the pyramid, at entry level jobs. These jobs are typically outsourced to staffing companies or labour contractors. Taking cue from it even manufacturing companies has taken to out sourcing of entry level jobs. The reasons for such outsourcing are many: - These jobs are not considered core to the business and are outsourced. - The fear of unionism and concerted labour action forces companies to park such jobs on staffing company payrolls. - Outsourcing is seen as an option of managing the local political or other pressures by hiring people through these local leaders. - The fluctuations in the market demand requires flexible staffing, which is easily done by outsourcing them. - Outsourcing such jobs gives the companies multiple options and ability to manage costs as opposed to hiring in-house. However, such outsourcing brings with it its own complexities and challenges, sometimes raising questions on even the wisdom of total outsourcing. Let us consider some of these issues and see if we can find a solution or a balanced outsourcing option. - The outsourced staff are typically untrained and skilling them to expectations is a major task. - Neither the company nor the staffing organization really feels that the employees are theirs. The companies feel that the employees belong to staffing companies and the staffing organizations feel that since the people are deployed at the company\'s premises they should be responsible for them. As a result, they fall between the two and do not feel owned or cared for. - The employees do not get any sense of security and are constantly on the lookout for a regular job. - The cost of training the people becomes an issue for debate; both the companies and the staffing providers don\'t want to invest in it, as both don\'t have a long term commitment to these jobs or the people. This affects their performance on the job and the efficiency of the business. To find a reasonable and appropriate resolution to these issues we need to question some of the beliefs that lead to outsourcing and if the realities match the beliefs. Are all the jobs outsourced really non-core? Let me illustrate it by citing a few examples and asking some questions. Facility Management companies outsource manpower. Their job is to clean and how can they do that by not owning the cleaning staff? Restaurants outsource stewards and service staff. Is their business only cooking and not serving? Hospitals outsource ward boys, hygiene staff and sometimes even nurses. Can they cure people in an unhygienic place without post treatment care? Retailing companies outsource delivery staff. Is their business only buying and stocking? Hotels outsource housekeeping. Isn\'t their business selling clean rooms? The answer to these questions would raise issues on what is core and what is not. In fact, most of the jobs at the entry level would be subject to such debates - are they core or non-core? The second major question that would arise even assuming they are non-core, aren\'t these jobs important for the efficiency of operations and business? Don\'t they deserve greater attention and better staffing? Nobody would disagree that the jobs need trained and committed staff, core or non-core as they may deem it. Nobody would disagree that there is a need for all companies that outsource such jobs to have confidence in the outsourced staff. Given the issues discussed earlier the only solution seems to be to create one\'s own pool of reliable resources. How does one do that? I have some suggestions. First of all, recognize that trained staff is required and training is an important aspect of sourcing reliable and productive manpower. Second, realize that irrespective of the volatility of business and the flexibility of staffing that may be required, a minimum number of staff will always be required. Third, unless the outsourced employees are motivated their performance would be affected which in turn will impact overall efficiencies? Fourth, consider total cost of hiring including cost of attrition, rehiring, retraining and so on. and fifth, unless you and your staffing partner feel that both your success is dependent on him providing trained and motivated manpower there is no commitment from him. Create your own pipeline of reliable staff by partnering training and staffing companies not just hiring them. Assure them of a minimum number of consistent hiring and ensure that these people are properly trained and compensated. Do not go for the minimum wages staffing at all times, after all they will be picked up by others by offering just a little more, pay fair wages. Treat them as your extended family and motivate and take care of them. This will make others want to be deployed with you, when you need more and you would get the better ones in the market. Share your future needs with your partners that they can plan for, rather than expecting them to supply people at short notice. Such partnerships work to the benefit of everybody and are more sustainable. At LIFT Academy, we along with our sister company Integron are evolving such partnerships with our clients and offering holistic end to end solutions, that too with a social objective.