This case study builds on a prior analysis of the IT Consulting firm, which is included as below:
Please look at the benefits of outsourcing some of your HRM responsibilities.
Of all the HR tasks, which would be good candidates to outsource? Why?
Which would be the least desirable to outsource? Why?
For your IT Consulting organization is HR outsourcing something you recommend? Please discuss.
The solution addresses all these questions, citing specific examples of what responsibilities will have a low employee impact if outsourced; and which functions should remain in-house.
Based on the proposal of reducing the Human Resource department (HRD) from six to five individuals (one manager, four subordinates); with each employee having a unique position and job responsibilities, the ranking process of job evaluation would be utilized. When there are relatively few positions, the ranking method provides a simplistic way to assign value to positions in comparison to each other (reference below). The ranking, and rationale for each, is as follows:
Q1 - Human Resource Manager with overall responsibility for the entire HRD and supervisory duties of the four subordinates
Q2 - Human Resource Specialist who acts in a confidential manner to management, facilitates recruitment, on-boarding new employees and may even assist with investigations (due to employee complaints and/or related to disciplinary actions)
Q3 - Payroll Specialist is tasked with properly processing all employee and contractor pay; ensures government reporting of taxes and other deductions related to payroll are completed accurately and on time
Q4 - Benefits Specialist is responsible for managing enrollment and/or changes to benefit plans, responds to questions from employees and managers
Q5 - Administrative Assistant answers calls to the HRD and routes accordingly, opens mail, performs clerical tasks such as word processing and data entry
The compensable factors in ranking these positions are responsibility level the employee has (supervising subordinates, perform confidential tasks and responsible for government accountability), where the position "fits" into a hierarchy (managers are considered towards the "top" and often oversee an entire department or division; whereas others "down the ladder" are often in roles that can be performed by others) and overall importance of tasks to the organization. Managers are generally needed to oversee, and are responsible for, an entire division or department of employees. The three Specialists noted in this example are important as well; but ranking decreases based on whether the tasks are confidential and/or can be performed by others. The compensable factors noted are critical in defining how the positions are "valued" within the HRD.
The new wage and salary system will include each position having an entry wage, mid-point and maximum. There will be clearly defined criteria for each level; indicating how and when an employee will ascend through the scale. Comparable salary data, from similarly sized IT related organizations in the area, will also be obtained for like positions. This will aide in determining the "market rate" for similar positions. As my staffing recommendation for the HRD includes the reduction of a position, all those currently employed will need to apply for one of the newly defined positions. Employees will be advised they will not receive a reduction in pay when moving into a new position; unless they current wage is above the high point. Although this may seem rather "harsh" to suggest pay may decrease, the jobs are completely changing. In the 2013 economy and rather high national unemployment rate, if a current employee is unhappy with this suggestion, there are many candidates available to consider replacing them with. My implementation plan would have a goal of retaining current personnel (less one layoff) - but not at the expense of having unqualified employees. With the four positions included in my plan, there would be a resume phase and interviews. If current personnel did not do well during this process, I would then consider "opening" the positions to external candidates. My "deadline" on implementing this plan would be no more than two months.
Reference:
https://smallbusiness.chron.com/different-methods-job-evaluation-1802.html