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Outsourcing the staffing function

Outsourcing the staffing function

Can a hotel company effectively outsource the staffing function? Is it economically justifiable? I think the answer, like most things, is: it depends. One needs to consider:
  • Company size: Can you get economies of scale? What is the cost/benefit of moving a department outside the company?
  • Cultural issues: Will the staffing agency understand your corporate culture and have personal contact with hiring managers?
  • Technology: Do you have the right technology in place to make it work, or are you willing to make a big investment?
  • Control: Will you lose control over the talent management process, and will that affect the quality of hires?
  • Liability: Is there an advantage to outsourcing for liability and regulatory requirements?
  • Cost containment: Will you be able to reduce head count and ultimately save money?
For most of our clients who outsource, a multi-pronged approach is best. Have internal staffing for executive level hires, talent management, talent strategy and leadership development. Then outsource for entry and mid-level and other functions that are more rote in nature. A balanced strategy like this will allow HR professionals to concentrate on the more important strategic decisions that make or break companies.
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