Assignment task:
A few years ago, my CEO asked the senior team to look at "out of the box" opportunities within each one of our portfolios to save money. Human resources is generally not a revenue generating department, and it was slightly over budget. I thought about outsourcing our attendance management program to a third party. At the time, there were many organizations whose primary role was to manage an organization's sick time. After all, managing sick time is time-consuming, expensive, and oftentimes, frustrating for an individual human resources department to deal with. After looking into the idea further, and despite significant projected savings, senior leadership decided not to proceed. Some of the main reason why we decided not to go down this path was strong resistance from our bargaining units and the perception of our staff having to deal with a third party. Despite our decision our decision not to proceed, many organizations have gotten out of the attendance/disability management business and outsourced that discipline to organizations that specialize in it.
Mini Case Study Instructions:
Using the internet or a personal experience, please provide a current (within the past 5 years) example of outsourcing in Ontario. What were the risks and benefits for the organization? Review and reflect on the overall pros and cons of the outsourcing decision in your scenario.