Managing external resources - Viewpoint - careers advice blog Viewpoint careers advice blog

Managing external resources - Viewpoint - careers advice blog Outsourced, embedded and subcontracted employees contribute to many industries, but that presents a challenge around people management. One of the longest serving employees at the UKs Ministry of Defence has walked the halls for 48 years. Even so, he has only been with his current employer for the past eight one of a series of companies during his time at the government department. Today, he is one of thousands employed by contract caterer and integrated services company Elior, which has teams in more than 600 sites across the UK. How can you manage outsourced staff performance, even though you might not directly employ them? The benefits of partnering with other entities for non-core services have been well documented. Costs can be managed more efficiently and outsourcing repetitive work enables departments to focus on more strategic  issues.  Its also often a way to access  specialist  skills a company would struggle to recruit itself, or even enlist internal staff to develop themselves in another part of the organisation. The variety of such service partnerships is enormous. They can focus on everything from on-site catering as with Elior to whole functions outsourced off site, such as accountancy. Works or projects can be subcontracted to a partner firm as engineers often do with their concrete supplier or functions can be indefinitely hosted in a shared services environment a common scenario in call centres. But with these operational efficiencies comes a challenge. How can you manage outsourced or subcontracted staff performance, even though you might not directly employ them? In it together Its up to the host HR team to set out expectations Arran  McDowell, UK HR Director for Elior, says it is important for service suppliers to have empathy for the team they will be working with. Clients look first at the financial side of bringing us in, but also at how we look after our teams, he says. Thats especially true if their team has worked for one of our competitors for over 20 years and is now about to be transferred onto our payroll. At the energy giant Shell, the companys three core employer values are  honesty integrity  and respect. This means that any party entering a partnership with the business needs to align with these values at the start of any relationship. An outsourced team becomes part of our team, so its important they share our values and goals, says Jose Mercado, who works in HR and talent management in Shell Mexico. When we decide to work with an outsourcing company, well look not just at their core competencies and the cost benefits of the relationships, but also whether their contractors share similar values to us. If they dont, its going to be very difficult down the line. Dr Jill Miller, a research adviser at the Chartered Institute of Personnel and Development, says that while the contract should always be the level in situations where there are challenges or disagreements, its up to the host HR team to set out expectations and outline a clear process for dealing with any conflict that may arise from either party. Put simply, says Miller, it is an issue of clarity over the service the business expects to receive. It helps to go back to what was set out at the beginning, she adds. Do managers know what the objectives of the agreements are? If they dont, they cant engage the outsourced teams with the wider purpose. Pick your partners The formula is simple: if we have happy colleagues, we will have happy customers Eliors  teams operate across a range of brands, from football clubs to City law firms, and the business needs to adapt its approach to the culture and customer expectations at each site. Just over three years ago, the company introduced a new customer experience initiative, led by service champions in different sites. These employees (not necessarily managers) support other staffs training to improve their service deliver. This empowers our people to make decisions and adapt how Elior works to every different site, explains McDowell. As a consequence of the new programme, both staff engagement and customer satisfaction scores have increased. The formula is quite simple: if we have happy colleagues, we will have happy customers, he adds. In the construction world, where subcontracting and outsourcing are commonplace, ensuring that partners share values is crucial for maintaining efficiency and productivity, as well as preventing workplace accidents. With the stakes so  high   businesses cant always rely on their partners to be as thorough as Elior. VINCI Construction France, the countrys leading construction company, works on more than 10,000 sites every year and has to make great efforts to ensure its partners on site are aligned on basics such as safety rules. Sarah Didier, who is  responsible  for recruitment at the company, says: Our management has a responsibility to do its utmost to ensure the physical integrity and the health of everyone on our worksites, and in the facilities we operate. We share an objective of zero accidents, from recruitment to integration, at all entities; its a key for our performance. Once a project is under way, she says, it is up to VINCIs line managers to ensure that their relationships with all partners are harmonious and productive. If issues arise, whether site-specific or country-specific, they need to be empowered to take decisive action. Supporting the line How to equip an organisation with the skills to manage partnerships very much depends on each situation. It must also take into consideration country-specific cultural and legal limitations. In Mexico, for example, companies are only allowed to use outsourced staff in specialised activities that are not part of their core business. But there are common concerns. Miller highlights the questions managers may face: What happens if someone leaves the arrangement? How do you replace them if theyre not from the host company, but need their skills? How do you ensure that the knowledge youve acquired as part of the relationship does not disappear it ends? Coming to an early agreement on how performance will be measured can prevent any misunderstandings later on. At VINCI, we strive to involve all stakeholders  in  our projects, including partners, customers, suppliers and local residents, as soon as possible, says Didier. Coming to an early agreement on how performance will be measured can prevent any  misunderstandings With clear contractual requirements, line managers will be far better equipped to establish procedures to evaluate performance by their partners. HR functions must not neglect managers necessary development around leadership, communication, coercion and negotiation skills. Leaders need to be able to make timely interventions, says Mercado, Having coaching, communicating clearly and supporting teams helps them to face these challenges. It can even benefit both parties if those outside the host team have the same access to learning opportunities as those within it. The manager for the joint team needs to have some responsibility for everyones career, not just those on their payroll, says Miller. If someone is seconded to a project, what does that mean for their career? It;s important that managers get people to see that everyone has a contribution to make. On a practice level, this could involve offering access to internal job boards at the host site or project-specific training opportunities anything that might foster skills that could improve the ultimate outcome. Of course, HR needs to ensure that any transfer of talent between partners does not impinge upon the contract of an agreement. It is unrealistic to expect that such integration can be applied in every circumstance, but clear communication and a shared vision make a good foundation. While a business cannot always exercise direct control over a partners staff, equipping managers with the skills to manage relationships and negotiate, coerce and influence indirectly will help create a more productive relationship. That will help fulfil the organisations ambitions and get the best  performance  from every party. If you enjoyed the above blog then you might also appreciate these other articles, which too originally appeared in the Hays Journal: Training at the top Why talented Chinese graduates are aiming high in Dubai Establishing an effective middle management tier Managing external resources Four pillars of people Family values View the Hays Journal online, via the Hays Journal iPad app or request a printed copy from haysjournal@hays.com //