Outsourcing HR functions benefit firms

By JADE LOPEZ, Reporter

PHILIPPINE businesses, in all sizes, have further reduced cost cutting efforts to include outsourcing even the company’s human resource (HR) functions.

“Companies affected by the economic crisis have to address the issue of sustaining their business as well as the work force,” said Leaders Link Managing Director Zamyra Baguio.

Leaders Link, a six-year old consultancy firm in Cebu, is seeing good business prospects in Visayas and Mindanao, with several companies now starting to outsource some of their needed services.

While some multinationalcompanies continue to maintain their own Human Resource Division, Baguio noted other HR functions are being outsourced. “Initially, Leaders Link served as the support entity for HR trainings and recruitment needs of Small and Medium Enterprises (SMEs), now even the multinational companies are outsourcing their HR jobs to consultancy firms.”

Leaders Link started its consultancy services in 2003 with only 10 clients. At present, it serves over 100 clients, some of them are based in Metro Manila.

Baguio told reporters on the sidelines of the recently held business forum hosted by Leaders Link that a growing number of Cebu-based companies, generally SMEs, are now able to further reduce business cost by outsourcing HR functions such as trainings and recruitment needs.

“In the past companies have to pay huge amounts of money to bring experts from Metro Manila, but now we have our own pool of experts in Cebu who are more effective because they speak the language and understand our regional culture,” Baguio said.

By outsourcing some HR functions, she noted a company will able to save the additional cost of hiring an HR Director, whose monthly salary is between P25,000 to P50,000 per month.

Most companies at present are only maintaining HR officers to do the administrative jobs like processing benefits, among others.

Baguio further commented that the HR manager, and not the employee, is more susceptible to the present global financil setback. “HR managers experience more headaches as companies implement sweeping cost-cutting measures, like freeze in hiring, across the board reorganization and even termination of services.”

“Surprisingly, while other companies are starting to feel the crunch, most of them find opportunities during the crisis,” she said.

Baguio said HR managers have observed that during the crisis, companies demand even more quality service reinforcing the need to train employees so they could cope with more demands in the work place.

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