STAFF OUTSOURCING

With Innovative Staffing Solutions as your workforce partner, you can concentrate all your efforts on growing your business, leaving all the staffing issues for us to handle.

About outsourcing your staff

Outsourcing is a worldwide phenomenon. The typical entrepreneur or small business owner is everything rolled into one. However, today’s business environment has become an intricate science that requires a host of specialists that no small business owner can afford or ignore. We can assume responsibility for all that – at a lower price and more efficiently than any single person could.
As South African companies globalise, business is becoming increasingly competitive. The only way to truly compete from a pricing perspective is to reduce the costs of doing business, and one of the first places your organisation can look at is, staff.

Staffing costs make up the biggest overhead for most businesses, particularly labour-intensive ones. While the savings vary from company to company, staff outsourcing holds the potential to reduce a company’s costs substantially. By outsourcing your labour force to Innovative Staffing Solutions, we could offer you an immediate 10% saving on your labour bill – and provide the employees with additional benefits which they may not have received before.

We make it our business to understand yours.

Our understanding of your business and our own processes are aimed at relentlessly ensuring the best culture and skills fit between our permanent employees and your operational requirements.

Innovative Staffing Solutions’ employees undergo industry-relevant and position-specific training so that we can ensure they are the best match for your business. Drivers, for instance, have thorough background checks, license validations, competency evaluations and their weaknesses addressed through intensive training. Equally important, each driver is managed by their allocated site supervisor to address potential issues that may hamper performance, productivity and safety. Our dedicated controllers, who each oversee approximately 40 trucks and their drivers, constantly provide us with feedback on driver behaviour and potential issues that could affect operations. Our control rooms are manned 24 hours per day, 365 days per year.

The safety of our employees and our clients’ equipment is of the utmost importance to Innovative Staffing Solutions, which is why we constantly find new and innovative ways to improve driver proficiencies.

As your outsourced staffing requirements are our sole responsibility, we will handle all Human Resources matters that pertain to our staff including training and assessments, the administration of trade union matters, the bargaining council, provident fund, medical aid, Pay As You Earn (PAYE), Unemployment Insurance Fund (UIF) or employee disciplinary processes.

With Innovative Staffing Solutions as your workforce partner, you can concentrate all your efforts on growing your business, leaving all the staffing issues for us to handle.

Because of this unique approach, our business has grown to such an extent that Innovative Staffing Solutions has employed one person for every working hour of 2017. Our full-time employees service most industries including the transport, engineering, manufacturing, logistics, hospitality and agriculture sectors.

The top five reasons why you should outsource your workforce

Outsourcing has become a reality for many companies as they look to bolster their competitive advantage and consolidate costs. In South Africa, where many industries are affected by a workforce mostly driven by organised labour, outsourcing can become one of the best survival strategies in their business toolkits.

But the question is always where to start? Which jobs should be outsourced and which positions should stay in-house?

For example, imagine you’re the owner of an engineering business.

Would you outsource your IT or employ internal technicians? Now imagine yourself as the owner of a healthcare business. Would you outsource your cleaning services or would it make sense to you to rather employ and manage a team of cleaners? If you owned an airline, would you employ chefs or outsource your catering requirements? What if you managed a mine? A hotel? A transportation company?

Though it makes sense to focus on your core business while an outsourcing company such as Innovative Staffing Solutions focuses on your work force requirements, companies are still hesitant.

While there are many myths regarding outsourcing, the truth is the benefits far outweigh the drawbacks. In a business environment characterised by a fluctuating market, downgraded economic conditions, high unemployment rates, skills shortages and labour unrest, more and more companies are seeing the wisdom of choosing to outsource staff.

Myths about outsourcing

Myth One: Outsourcing is too expensive

• Staffing a business is a time-consuming and costly exercise, as recruitment expenditures can run between 15% and 25% of the candidate’s total first year annual earnings.

• Added to that, mandatory staff training and Human Resources related costs, bank- and payroll charges, and payroll export fees further impact overheads.

• Further, as South Africa has a highly regulated employment environment, companies’ bottom lines are often negatively affected due to industrial action and operational disruptions.

Truth: Outsourcing reduces costs

By outsourcing the staffing element of your operations to an organisation who understands Human Resources and the law intricately, and who appreciates that its clients’ focus should be on their core business and growing their organisations, you can save on all of the above concerns:

• For instance, Innovative Staffing Solutions do not charge our clients a recruitment percentage for staff placements. The company would add an agreed management fee to the client’s existing labour bill to manage all their staffing requirements and HR related costs.

• Clients further save substantially as all training, skills development and competency licensing requirements in certain industries are for Innovative Staffing Solutions’ account. As the company provides a skilled and competent labour force to its clients, it ensures that all employees are proficient and skilled according to their respective professions.

• In the seven years that Innovative Staffing Solutions has been in existence, we have never experienced industrial action. This means our clients’ businesses and their bottom lines are not negatively impacted by labour unrest which is generally associated with specific sectors i.e. transportation, mining and engineering. We believe that it is because of employee loyalty and a happy workforce. At Innovative Staffing Solutions, we often offer our employees additional benefits such as pension or medical aid, which they would not necessarily have received from their previous employer. This translates back into better productivity, increased work ethic and pride in what they do.

Myth Two: Loss of control over business processes

• Some might argue that outsourcing results in the loss of control over certain business processes such as driving, guarding, cleaning, administration and accounting.

Truth: Focus on core business processes rather than supporting ones

• Back office operations don’t generate money for your business but they do take up a lot of your time and create unnecessary stress. By outsourcing non-essential functions, our clients can better focus on their core business functions. Also, outsourcing allows management to play a more strategic role by concentrating on other crucial aspects, such as operations and the financial growth of the business rather than having to deal with routine issues and activities.

Myth Three: Lack of employee commitment

• While there is a concern that outsourced employees may lack the necessary commitment to fulfil their roles adequately, the same could be said for any unmotivated employee.

Truth: Staff are easier to let go or replace

• While businesses need to build strong relationships with their people, they also need to focus on profitability. This sometimes includes being able to let go of people who are not performing well, who do not fit in with the corporate culture or who do not demonstrate the necessary commitment. Outsourcing allows this process to take place more easily as the contract usually allows for an employee to be replaced or moved onto another contract without all the associated human resource issues. Instead of just dismissing, the outsourced employee will be shifted to another site where the culture fit may be better. Alternatively, the outsourced company’s disciplinary code will be followed eliminating all risk involved for the client such as CCMA hearings.

Myth Four: Only unskilled and semi-skilled staff are outsourced

• Start-up organisations and small to medium enterprises often think that outsourcing is only aimed at larger organisations who outsource their unskilled such as farm labourers, grocery clerks, hotel maids, or general cleaners for instance) or semi-skilled workers such as truck drivers, security guards and retail salespeople.

Truth: Fill the expert labour gap

• Outsourcing can be as effective for organisations looking for unskilled or semi-skilled personnel as it is for those looking for people with more specialised skills such as engineers, marketers and accountants, specifically where there is a shortage of expert skills in a particular field.

• Good outsourcing companies such as Innovative Staffing Solutions make sure they recruit the best talent in their respective fields to ensure their clients are happy because satisfied clients mean repeat or increased business. We also have stringent processes in place to check the credentials of all our staff and provide mentorship and training programmes to ensure staff are business-ready and updated on the latest industry trends.

Myth Five: Outsourcing is a long, tedious and legal process

Companies are often under the impression that outsourcing is a lengthy process and that it involves months or years of union negotiations to outsource its labour force.

Truth: Outsourcing can be done within days

• The process of outsourcing staff is a relatively simple one. Contractually, Innovative Staffing Solutions would employ your staff members on a permanent basis and outsource their function back to your company. Should your contract with Innovative Staffing Solutions expire for whatever reason, the employees would remain with us and would simply be moved onto another contract. This means if your company ever finds itself in financial trouble, you would not have to worry about laying-off staff or taking on the added HR related responsibilities.

• Innovative Staffing Solutions has great relationships with organised labour and unions because we treat our staff so well. They understand that through outsourcing, their members have job stability and more of than not, improved working conditions, and better benefits than what they previously had.

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