January 17, 2005—New research into the impact on staff of an employer’s decision to outsource shows that if the right approach is taken, employees view outsourcing as an opportunity to develop specializations and to revitalize their career.
Research commissioned by LogicaCMG polled 200 employees from large organizations across the UK, Netherlands, France and Germany to find out their opinions before, during and after their positions were outsourced.
The findings showed that there is still a high level of apprehension surrounding outsourcing. 84% of those questioned across Europe (94% of all UK respondents) reported that they were concerned about the changes that follow on an organizations move to outsourcing. Concerns focused on possible changes that might take place, worries about job security and fear of the unknown.
However, LogicaCMG’s research found that despite early concerns, the majority of employees (91%) said that these initial feelings were for the most part ungrounded.
About 70% said that they felt more satisfied in their new job, and almost half reported outsourcing to be an opportunity to develop further specialization in their field of work. Employees in the Netherlands and France were most positive after a move to outsourcing, with over 70% seeing the change as an opportunity to revitalize their career.
The study found that for employees to embrace and benefit from a move to outsourcing, the transitional process must be handled with open and timely communication at an early stage. If a company does not conduct the transition process effectively it risks losing its employees—almost a third said they would seriously consider moving jobs.
The study also showed that while the structure and content of the remuneration and employee benefits package are important, feelings of being part of the new team and involved in the new company have the most positive impact on the overall perception of the outsourcing project.
Paul Dunn, management consultant at LogicaCMG commented: “Experience tells us that the outsourcing projects that succeed, benefit from good planning, clear objectives and communications. It is important to apply an inclusive approach to the business change process from a dedicated project team that incorporates the needs of both employees and management.”
Dunn added: “Specific lessons to be learned from the survey highlight the importance of a clear communications program that defines the goals, outlines the benefits, engages affected staff at an early stage, and encourages input to all aspects of the outsourcing process from all key stakeholders. This kind of approach will ensure a smooth transition and ensure long-term employee retention.”
—Elliott Chase
Reprinted with permission; copyright 2005 i-FM
