At the event (Photo: Internet) In Vietnam too, HR outsourcing is favoured by companies, said JohnAntos, vice president, strategy, global payroll and Asia Pacific at ADP, aglobal provider of cloud-based human capital management solutions and businessprocess outsourcing services, analytics and compliance expertise.
In 2021 Vietnamese businesses paid 2 billion USD for business processoutsourcing services, he said.
With Vietnam’s high GDP growth and large workforce of 51 million, HRoutsourcing has enormous potential, he told the first Vietnam HR OutsourcingConference held by Talentnet in HCM City last week.
With the rise of new business models, HR outsourcing has become a choice ofcompanies that go through organisational change, significant growth or mergersor acquisitions or have a difficult time hiring or retaining talented HRpersonnel, but would like to focus on their business without reducing HRquality, access digital HR benefits and minimise initial technology investment,he said.
HR outsourcing services assist HR departments in performing strategicimprovements, not merely transactional changes, enabling companies toexperience positive changes such as constructing an equal wages policy,building an engaging culture and understanding the needs of employees to createsuitable changes in the working environment.
Antos said after one or two years of using HR outsourcing services, companiescan experience significant growth. Amid the positive economic outlook for ViệtNam, companies should look at the spending on HR outsourcing as an extrabenefit instead of an expense.
Talking about the most important factor in deciding to use HR outsourcing,Nguyen Thi Xuan Huong, country HR director of AkzoNobel Vietnam, said companiesneed to have a clear answer for “Why do we need HR outsourcing services?”
According to delegates, there is no one-size-fits-all recipe for success in HRoutsourcing.
They shared some factors to avoid pitfalls when businesses decide to use HRoutsourcing services, including managing expectations by setting clear resultsin the plan, choosing credible partners that can deliver expectations andbuilding an effective integrated system and/or data management processes tocontrol and review service quality.
Huong said HR outsourcing has limitations such as an employee turnover ratethat is double the rate for permanent employees and hiring low-quality workers.
To retain outsourced employees, companies need to consider them for permanentpositions and offer them more benefits, she said.
Nguyen Quynh Tram, country general manager of Microsoft Vietnam, said to manage150,000 employees, 75 million organisations, 17 million partners and over abillion users, her company focuses on “culture” with four factors: culturalattributes, company values, manager expectations, and leadership principles.
Besides, its management strategy focuses on the principle of “optimise thecapacity of every employee to optimise their result".
To create such a culture and assist the development of each employee, Microsoftchose HR outsourcing for many departments such as sales and marketing,accounting, office management, internal IT support, customer support service,and manufacturing, she said.
To be able to manage such a large network of outsourced personnel, it isnecessary to develop a strict policy through diversity and inclusion, measuringoutcome and regulatory compliance, she added./.
VNA
