A majority of the challenges with managing HR in a global sourcing initiative are similar to any sourcing engagement such as retention of key resources, planning for displacement of employees and re-tooling individuals to take alternative positions within the company. The real difference lies in the responses needed to meet those challenges. Here are a few key differentiating factors between domestic and global delivery:
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Changes in skills distribution |
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Changes in roles and responsibilities |
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Changes in the internal environment (such as people, infrastructure and office culture) |
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Differences in distance and time zones |
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Differences in culture |
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Challenges in communication |
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Political and personal views and biases. |
Key Issues in HR Management
We discuss four important aspects of HR management in the context of global sourcing.
1. Alignment
The first step is to align current HR practices and policies with the global sourcing initiative, which will involve:
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Adding new roles due to global sourcing |
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Re-defining current roles to include new global sourcing job requirements |
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Reducing hiring plans for roles being outsourced. |
If this step is started during the planning phase, it helps the enterprise to make appropriate decisions on probable displacement in terms of layoffs, re-deployment, re-badging, and their subsequent impact on the business. This exercise also includes identification of key resources needed during transition, so that retention policies can be put into place in a timely manner. It also ensures that the right resources are in the right place to execute the initiative.
2. Retention Planning
Retention initiatives need to be targeted specifically toward different types of individuals:
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Employees who are not touched by the global sourcing initiative |
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Employees who will be affected by global sourcing, but need to be retained long term |
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Employees whose roles will be made redundant by global sourcing, but still need to be retained through transition |
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Contractors who need to be retained.
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In global sourcing free flow of accurate and timely communication will ensure that people do not leave due to lack of clarity. Educating employees on the benefits of outsourcing that positively affect them (such as absence of night shifts, additional resources within the same budget, growth of the firm and knowledge documentation) will help create buy-in. Integrating influential managers into the process will help spread buy-in quicker than solely using consultants or corporate managers. In addition integrating change-management activities into HR strategy will help retain these employees.
If most of the planning and retention initiatives are in place, the focus will be on minimizing negative morale of employees.
