Outsourcing HR: Evolving Business Environment Creates a Need for Creative Training Solutions

Downsizing, restructuring, redeployment – call it what you want, companies are facing challenging economic trends with direct effects on employment levels. According to Reuters.com in “U.S. layoffs rise by 0.6 pct in May vs April-survey,” job cuts in May 2007 reached over 70,000, up 32 percent from the previous year with the majority of job cuts in the financial sector, along with cuts in pharmaceuticals, health care and media firms. Each change brings new challenges for the human resources department.

Companies today see the need for proper training but are sometimes faced with budget restraints that hinder that process. Along with staffing changes, many HR teams must also contend with other organizational change, including less focus on company infrastructure, resulting in scaled back in-house services. Yet, the need to train, educate and prepare employees for the demands of their positions, new job descriptions and increasing leadership roles exists more than ever.

Whenever organizations are pushed to make across the board budget cuts, those departments that are less directly tied to profits are often first on the chopping block. Although it is arguable that the human resources team is charged with a company’s most important task: keeping it staffed with knowledgeable and productive employees, in the end every department may find parts expendable.

While its numbers may have dwindled, the HR team may now have a greater number of employees to train. With the loss of employees, organizations must ensure that existing and new employees are equipped with the required skills to complete their changing roles.

For example, a marketing manager who previously dealt with a detailed staff of eight may now be delegating to a combined marketing and communication team with half the staff doing twice the work. She may also perform tasks outside the realm of marketing as other positions within her company are eliminated. The HR team must ensure that she is prepared to perform all the items under her job description. It is no easy task.

Cutbacks Need Not Be Setbacks

Finding alternative and cost effective methods to train employees in light of these potential setbacks is key for continued success. The solution to the problem requires creativity and a willingness to look outside the confines of one’s own corporate structure. Business process outsourcing (BPO) is a proven solution that relieves the pressure on the organization to perform complete HR services despite reduced manpower, while allowing for continued creation, development and delivery of quality training.

In 1999 PricewaterhouseCoopers (www.pwcglobal.com) and Yankelovich Partners Inc. questioned executives in over 100 companies with annual revenues averaging over $4 billion regarding their outsourcing for the “Global Top Decision-Makers Study on Business Process Outsourcing.” The results were overwhelming. The majority of decision-makers felt that BPO “leads to better service levels than internal departments can provide.” And, 78% of leaders in the study believed that BPO had a direct effect on profitability and led to increases in shareholder value.

As shown in the study, the benefits of BPO are numerous and include that it is:

• Cost-effective. Organizations have access to as little or as much process handling as is required without having to spend capital on technology or payroll and benefits for added positions.
• Time-saving. BPO increases an organization’s ability to focus on core capabilities.
• Targeted. According to the PricewaterhouseCoopers/Yankelovich Partners Inc. study, BPO is frequently used to address specific needs in benefits management, payroll, claims administration, real estate management, tax compliance, human resources and internal auditing.

Outsourcing training began to rise in 2000, despite a downward trend in three previous years, according to the 2002 ASTD State of the Industry Report. Industry leaders know that outsourcing works. Four years later, the ASTD 2006 State of the Industry Report notes that “leaders who understand how to drive results in an increasingly competitive, global environment…rely on workplace learning and performance (WLP) professionals to develop highly skilled employees.”

An Effective Employee Development System Provides the Whole Solution

When considering outsourcing for employee training, organizations need to look at the big picture. Training is the task at hand, but what does it entail? A qualified WLP provider not only offers training with a range of options for imparting knowledge but also offers a consistent and measurable system for tracking skill acquisition and retention. A superior WLP provider links the whole training package with a commitment to service and a product that is second to none.

One consistently top-rated training source is Edge Training Systems, Inc. of Richmond, Virginia. Edge brings businesses a single-source solution for leadership training needs with measurable results. The leading producer of leadership and employee development solutions for over a decade Edge's commitment to developing highly successful workforces along with a comprehensive line of training material has provided organizations and their employees with the tools necessary to excel in today's challenging work environment.

“When an organization signs on with Edge to develop their current and next generation of leaders, they’re entrusting the future of their business to us,” says Paul O’Keefe, founder and president of Edge. “By providing them with a full cycle of learning, they can measure the growth of their employees statistically through Edge’s own assessment solutions and in turn tackle deficiencies with a variety of learning options, all the while knowing that our continuity of core competencies links it all together to their benefit.”

Assessment-guided training has enabled Edge to develop over 100,000 high potential leaders since its inception in 1995. By relying on assessments first, Edge is able to analyze skill gaps throughout an organization, develop custom learning plans to boost productivity and identify potential leaders within an organization. To provide a full view of skills, Edge offers clients a set of assessment tools that approach leadership skills from two angles: self-perception and confidential feedback from peers, supervisors and customers.

KnowlEDGE for Leaders maps organizational competencies and job roles to statistically validated behavioral anchors. These eight core leadership competencies, which were identified through research and surveys of over 5,000 managers and employees as being critically important to a company’s success, include: coaching and counseling, communicating effectively, influence and negotiation, managing change, performance management, setting goals and standards, managing conflict and problem solving and decision making. KnowlEDGE for Leaders gives employers a clear idea of what the employee knows about effective leadership.

The EDGE 360-Degree assessment provides each employee with a multi-rater picture of his or her performance as perceived by others. Each core competency has a set of positive phrased behavioral statements that the feedback provider uses to give input on a leader’s effectiveness. Fully managed and monitored by Edge, feedback providers feel secure in their confidentiality and are more likely to provide their viewpoint. As a result, the employer and employee will gain insight as to the effectiveness of their leadership behaviors in action.

“We have been using two Edge products for the last five years,” says Gary Korpita, leadership development manager for SCANA Corporation. “The EDGE 360 and Knowledge for Leaders have been very successful for us. The assessments have been customized to SCANA’s core competencies. The results help direct employees to very specific learning modules to develop those areas.”

Training is then based on the picture painted by the assessments. And, as the training comes full circle, another assessment may be performed giving employers and participants a clear picture of the employee’s skills in the leadership cycle from current skills at the beginning of training to skills learned and, ultimately, knowledge retained.

Comprehensive System Tackles Different Learning Styles

Once the initial assessment is completed, training begins. This is where the BPO really begins to reap rewards for the client. Edge provides a comprehensive system of learning options that is hard for any in-house training department to match.

Edge offers videos and e-learning to go with each core competency assessed in KnowlEDGE for Leaders. A cost-conscious choice for businesses on a budget, the e-learning is easily accessible and videos are available for purchase in a variety of options including bundling and video streaming.

While many WLP providers offer videos and e-learning, for Edge videos are just the beginning.

Edge president Paul O’Keefe believes the classroom is at the heart of learning. “Taken out of the office and into an educational setting, employees switch from leader to learner,” says O’Keefe. “They are better able to focus away from the hustle of the office and with the direction of a talented facilitator can make the most of the learning experience whether it is with a video or through group discussion.”

Clients may also choose to provide classroom learning either with an in-house trainer or with a facilitator selected from Edge’s nationwide network of experienced professionals. When organizational restructuring has resulted in the absence of in-house facilitators, HR departments can still reap the benefits of a knowledgeable trainer by selecting someone who is well-versed in Edge’s training materials and can guide learners to better understanding and greater retention of new skills acquired with customized lessons and activities.

Rather than provide training on-site, organizations may opt to send employees to the Edge Academy of Leadership.

“The Academy brings promising leaders together with an unparalleled opportunity to talk about workplace scenarios, engage in group discussions, ask questions and learn from each other, while participating in learning activities such as case studies,” says Tony Iyoob, vice president of development for Edge. “It gives leaders a chance to do some real life application planning and learn from potential results without real life consequences.”

Employees can choose to take the entire 12-session program or pick from individual sessions focusing on a variety of topics highlighting the core competencies. Less than 25 leaders from a mix of companies make up each class.

“With people representing different companies, you get a lot of good feedback,” says Darryl Bynum, grocery operations manager for Food Lion. “One of the biggest things we discussed is communicating effectively. I learned you can never over-communicate and that building trust and maintaining integrity are a pivotal part for anyone who goes into management.”

Coaching calls are the newest addition to Edge’s arsenal of targeted training options. Clients may purchase the calls in a block and use at their discretion to encourage personal accountability in leaders during a session with an experienced trainer.

“The assessments Edge provides become even more effective tools when a participant has a coach to help them interpret results and incorporate them into improved job performance,” says Bill Baker, senior consultant for HRD Strategies, Inc. “A good coach will help participants understand comments, separate the person from the perception and learn how to act for better results.”

Recently, SCANA Corporation offered its leadership assessment participants with a one hour follow-up coaching call to discuss assessment results and assist in creating development plans based on those results. Initially, it was voluntary and up to the participant to request it from EDGE. They have since decided to make it a standard practice based on the need of the participants to get a greater understanding of their results.

“After participants took their assessments, we realized that there was a huge need for follow-up,” said Terry Frans, leadership development coordinator for SCANA Corporation. “Now, within 72 hours after completion of an assessment, the participant receives a call to schedule a one-hour coaching session. They receive undivided attention with a coach who can explain their assessment. I have had several participants come back afterward and ask to do more to develop their skills, resulting in an increase in enrollment in specific classes.”

“Edge provides us with a service we’d love to do internally but just don’t have the manpower,” says Korpita.

Ever-changing economic forecasts are giving more and more businesses a reason to choose WLP professionals to educate employees, particularly those affected by organizational restructuring and increased leadership responsibilities. When time and money are at a premium, a total package solution gives organizations reliable tools to supplement or replace downsized training departments. Smart companies will agree with ASTD and its conclusion in the 2006 State of the Industry Report that “as learning becomes more integrated with business strategy, metrics to manage and report on the learning function are increasing dramatically.” Well-versed in measurable results and offering a complete array of products for leadership training and assessment, Edge is ahead of the curve.