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Cost / benefit analysis of outsourcing
Cost / benefit analysis of outsourcing
Drawbacks of e-recruitment
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From the experience working as a business manager for McDonalds Ltd in the United Kingdom I experienced the effectiveness of the online recruitment the one of the major responsibilities of a business manager. The easy, cost effective and time saving nature of the process enabled the posting of the jobs in the real time without any delay so as a business manager I was more flexible and in control of other daily tasks very relevant to the business and workplace. The selective process was based on initial online recruitment, and because I had an opportunity to experience and test the system from the perspective of job seeker, I can clearly state that the applicant goes through rigorous selective process but fair enough to get to a next stage …show more content…
The key strength of outsourcing towards the human capital is cost saving (Philips, 2005). The companies approach outsourcing when there is an achievable improvement in costs by using the the external employees rather than creating an in-house employees which causes less problems to solve. The company saves time which is very important in business nowadays and Philips (2005) expresses that companies see the advantage of outsourcing in fewer legislative work regulation in relation to each of the employees what allows the professionals to concentrate deeply and more actively on principal core of the strategic goals. As presented by Philips (2005) the approach of outsourcing is attracting more and more business establishments. One of the good examples is the company Nike outsourcing “every possibility” and employing very limited pool of corporate staff. The purpose of this approach is to maximize the endeavour of the company to achieve success by relying on outsourced facilities and services without distracting the main focus of the company by keeping occupied with the employees needs. Similar approach can be seen in DELL company promoting the idea of performing the certain in-house activities by outsourcing (someone else) or offshoring (different place), for example different areas for …show more content…
The word dangerous can be seen as not an important, but within the world of business the dangerous situation may arise from insolvency of the contractors and suppliers of the outsourcing services and can carry a certain level of detrimental impact on achieving strategic goals of the
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
Recently outsourcing has been in the news, especially during political election years. It seems to be a phenomenon that is causing much concern among the population. But exactly how is outsourcing effecting both workers and businesses? And is it as big of a problem as politicians describe?
Since many of the applicants are young, they use computers to looking for a job online in order to establish a new career or jump into a new area. Therefore, place hiring information online would be more effective than other traditional ways to advertise and can also reduce cost of advertisement by using their own website.
It is difficult to determine whether offshore outsourcing has a positive or negative effect on the U.S. economy. It may actually depend on which perspective you take on it. As stated by Hira and Hira (2005), outsourcing in the services sector is a major shift in how the economy operates and will have serious impacts, both positive and negative, on the trajectory of economic growth, distribution of income and the workforce. However, there are many factors to take into account when considering globalization. Companies must familiarize themselves with the various rules and regulations of global business, tariffs, trade agreements and barriers, and decide how to go global; global consistency or local adaptation. All of these issues affect a company’s plan to move forward with offshore outsourcing.
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
Outsourcing has only very recently become an issue in the United States, and as a result it has become a very popular political issue during campaigns for presidency. Outsourcing is the idea that a company will subcontract to a third party, usually outside of the US, for various parts of its business structure. An example of this and perhaps the largest source of outsourcing is call centers for tech support, where a company will subcontract to a third party and that party will build up the call center and hire the workers for it. Many people have been affected by outsourcing since it started being used widely in the 1980s, and most would argue that outsourcing is not a good business model, that while it not only negatively affects them, it affects the whole economy. While there are some unmistakable positives to outsourcing, I would argue that as a whole, the negatives far outweigh the positives and outsourcing is bad for the United States.
Outsourcing has been around for many years. In this paper, I will discuss some of the history of outsourcing, the good things about outsourcing, and the bad things about outsourcing. Outsourcing is important because many companies rely on it in order to get many different products and services to their facility on time and in good shape. Outsourcing is a huge part of the business industry today. Any business can be affected by outsourcing.
As more companies expand their business globally, they are seeing more opportunities and an increased set of threats to the market. Threats like war, political revolutions, new currencies, and natural disasters can affect growth and political stability throughout the world, so in order to successfully compete in the international market more companies are faced with the decision of relocating part of their operation offshore. This paper will address what key elements companies in this situation need to address, such as, quality of customer service provided, security of confidential information, and the possibilities of cost savings, in order to be sure that outsourcing is the best solution for their company.
The internet has opened new avenues for companies in regards to finding new candidates for filling vacant of newly created jobs. Companies now have their own websites where they can list current job opening. In addition, there are multiple job boards such as monster.com and hotjobs.com. There’s even the option of social media sites such like Facebook, Twitter, and LinkedIn where companies can post information about their company and current job offerings. In the past companies would rely on placing a want ad in the local newspaper or in a widely circulated industry magazine or journal, then they would wait for the applications and resumes to arrive via mail or hand delivery. The “old recruiting paradigm, aimed primarily at active candidates, was predominantly a ‘spray and pray’ method. The tools of the trade were want ads, paper applications, resumes, phone calls, face-to-face networking, and so forth. Employers sprayed want ads across pages of print media, and job seekers sprayed large numbers of resumes in the direction of potential employers; both prayed for good results.” (Joos, 2008) While these met...
The use of social network or social media for recruitment purposes provide a substantial prospects for employers to search and recruit potential candidates. Since social media and online resources are the most available and effective tools in the 21st century, they are more convenient and appropriate to use for recruitment purposes nowadays. But as there are number of advantages there are also couple of significant challenges for employers if they want to have screening or background checks or check employee job references.
A disciplined approach to management eying leading employees, improving the management team and building the business strategy. Instead of treating each problem as a one off. They design systems and structures that make it easier to handle in the future. (Techrepublic, 2015) 2.2. Risk of exposing confidential data: When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party Synchronizing the deliverables: Some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities. At times it is easier to regulate these factors inside an organization rather than with an outsourced partner Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple company at a time. In such situations vendors may lack complete focus on your organization 's tasks. 2.3. 1.Know the
It is the process of using the Internet to seek out and recruit candidates from all over the world. In 2001 it was estimated that 18 million resumes were posted just on Monster.com, the largest Internet job site. Monster.com had almost 500,000 jobs available. With more than 5,000 job boards where resumes and job opportunities posted. With the internet becoming even more popular now, that number has increased. The Internet has quickly become one of the primary recruitment tools for both internal recruitment and talent acquisition committees and third-party talent search companies. One of the main goals of Internet recruiting is the same as traditional recruiting: to find suitable people to employ. Online recruitment is often an efficient way to find qualified candidates to fill positions in a business. It can be done by posting available positions on different job boards and by reviewing candidate profiles. By doing an online listing for a company, employers are ensuring that the position is seen by a larger variety of candidates than regular newspapers. Today, a lot of companies are now doing online recruitment through their company website. Many companies offer an "employment opportunity" or career page section which they can create an online application that can be sent directly to human
...oose from, however sorting through applications to remove unsuitable ones can be time consuming. The other negative is that you are only going to get people that are actively seeking. This is why they don’t just use this method. Another method is using social media. This method is effective because of how popular social media is today. It generates a wide reach and you can set it so certain people will see it, for example people living in certain areas, people of a certain age etc. This is very useful for NatureCare as they are looking for university graduates of at least 4-5 years ago. They can advertise to certain regions, or even people that have attended certain schools, such as UC. Social media recruiting is effective because it is not a high cost compared to traditional advertising and the hiring time can be reduced greatly.
Recruitment refers to those activities that an organization tries to attract people for applying a job in the organization. From these activities, chances will be given for people to apply jobs from there organization. An effective recruitment should have a right person in the right place at the right time; the main way to attract applicants can be listed as follows, walk-ins, employee referrals, advertising, websites, professional associations, educational associations, professional agencies, E-recruitment and world-of-mouth. Applicants can get some recruit informations form different ways; employees will provide a job description for those who are interested.