Discuss about the Human Resource and BPO Corporations.
The recruitment procedure is one the most critical process for an organisational development. The process includes several steps such as attracting the candidates, analysing their qualification and capabilities, selecting the right applicant and appointing them to the right post. This process benefits the company by choosing the right candidate for the right job which augments the growth of a company. In modern times, the human resource department faces various challenges which negatively influence the recruitment procedure.
There are different factors which affect various aspects of a recruitment procedure such as negative organisational image affect attracting process, and unqualified candidate makes it difficult to select the right person for right job. This report will focus on the business process outsourcing industry and its various factors that negatively influence their recruitment procedure. Further, the report will analyse the situation and provide different strategies based upon human resource principles that can improve the recruitment procedure of a company.
Many corporations contract with third-party companies to transfer or outsource their business activities, which are known as business process outsourcing or BPO. As per Caniglia, Ramachandran & Khanna (2005), the modernisation of technology and globalisation assist in the growth of BPO industry. The BPO industry provides a large number of employment to people. The growth of BPO industry in Asian countries is remarkable due to a high number of populations in countries such as India, China, and Thailand. The advantages of outsourcing a business activity include reduction of expenses, skilled workforce, and better focus on primary activities. But, along with merits, there are several drawbacks of outsourcing as well such as lack of information security, unpredictable government policies, change in the attitude of employees, and underestimation of expenses (Nadkarni & Herrmann 2010).
The human resource department of BPO enterprises faces different problems which recurring new employees. Following are several factors in BPO industry which negatively affects the recruitment process.
The first step of the recruitment process is attracting the talented candidates for the recruitment procedure of the company. Ghodeswar & Vaidyanathan (2008) provided that the human resource department faces different challenges in attracting talented employees because of the negative organisational image of the enterprise. In most countries such as China and India, BPO sectors did not have a positive reputation in between people. This industry employs a large number of people, but mostly the employee’s work on low payrolls and high working hours. The organisational environment in a BPO company usually includes late working hours, low basic pay, sexism, and discrimination based on religion. The growth opportunities in BPO sector are low for the employees. Many people quit their job as soon as possible if they get a better opportunity in other companies.
Most of the BPO companies prefer to hire candidates from some locations because they perform their job at a low salary package. According to Doh (2005), most of the BPO companies did not have any regulations regarding discrimination conducted by employees based on religion. The corporations face considerably high problems of diversity throughout BPO industry. The rate of female employees in BPO industry is below 35 percent. Organisations did not prefer to hire female employees because of late working shifts and sexual harassment cases in the workplace. The company did not strictly implement the policies regarding female employees which eventually force them to quit their jobs (Mahmoodzadeh, Jalalinia & Nekui Yazdi 2009).
As per Mehta, Armenakis, Mehta & Irani (2006), the age gap between the employees in BPO sector is significantly high. The maximum number of BPO works comes under the age group of 23 to 40. The companies did not prefer to hire aged employees because they lack technical knowledge. Most of the elder employees are not good with technologies, and their productivity is considerably lower than young people. Therefore, BPO companies did not prefer to hire them.
Modernisation and globalisation have positively influenced the growth of BPO industry, in past few decades. Whitaker, Mithas & Krishnan (2010) provided that a large number of organisations are using facilities of outsourcing to reduce their costs and improve their quality of services. Due to this development, the demand for talented employees has proliferated in BPO sector. Most of the employees in BPO industry do not possess proper skills of operating a computer or English proficiency. This creates problems for human resource department because it became tough for them to find the talented employees and retain them in the organisation. The supply of talented employees is not enough to satisfy the demand in BPO industry, and it is growing in at a fast pace (Narayanan, Jayaraman, Luo & Swaminathan 2011).
BPO industry has grown rapidity in past few decades and it still one of the fastest growing industry. As per Lacity, Solomon, Yan & Willcocks (2011), daily new local companies are starting their BPO business which increases the number of competitors in the market. Along with the competition, the demand for talented employees has grown as well. Organisations are competing with each other to attract and retain talented employees. Many companies offer high salary packages and incentive to other corporations’ employees, in order to employ them. Due to high competition, the talented employees have raised their demands which make the procedure of recruitment difficult for the human resource department.
In BPO sector, the requirement for employees includes English proficiency, basic computer knowledge, and service orientation. Most of the people in developing countries did not possess these qualifications. The degrees provided by candidates did not prove their qualifications because many applicants use fake degrees. Human resource department faces difficulty in analysing the qualification of candidates, and it also takes a long time (Bharadwaj, Saxena & Halemane 2010).
The human resource department of BPO corporations can adopt various strategies to address the challenges faced by them in recruitment procedure. Following are few of the examples of such strategies.
BPO companies can adopt an organisational training strategy to improve their recruitment and retention procedure. According to Halvey & Melby (2007), the demand for talented and skillful employees is high in BPO sector, but the supply is considerably low. To address this issue, corporations can provide training to their employees who can improve their productivity and knowledge. The company can also provide training to new employees to give them a better understanding of their work. The company can establish a lock-in period for the employees who were given training by the organisation, so they did not leave the corporation right after completing their training. Training can benefit human resource department in fulfilling their demand of recruiting talented employees (Rai, Keil, Hornyak & WuLlenweber 2012).
This strategy also benefits human resource department in filling up the age gap between the employees. Most companies did not hire aged employees due to their lack of technical knowledge and productivity. By providing them on the job training, human resource department can employ them in the workplace. Trained employees are also easier to manage which benefit the company by maintains a positive work environment (Graf & Mudambi 2005).
Most people did not prefer to work in BPO sector is because the companies did not provide better salary packages to their employees. Mani, Barua & Whinston (2006) provided that the incentives and bonus schemes of BPO corporations are not according to the long working hours. To address this issue, companies should establish better policies regarding salary packages. Better salary packages attract talented employees which is beneficial for the organisation. The organisation can establish an incentive policy according to the performance of employees; this strategy will motive employees in improving their productivity and also solves the retention issues of BPO corporations.
The top-level management of BPO corporations should implement an efficient workplace culture which must be followed by the employees. As per Conklin (2005), the human resource department did not receive talented candidates in recruitment procedure because of the negative work culture in BPO sectors. By implementing proper diversity regulations and cooperative policies, the BPO corporations can improve their working environment. The human resource department should also promote the hiring of employees with different cultural backgrounds which promotes the diversity in the company.
Human resource department should not discriminate against candidates based on their age, gender, caste or religion. The female employees should receive similar salary packages and opportunities as compared to male workers. The positive work environment will improve the organisations image of BPO corporations which can benefit the human resource department in recruitment procedure. Most talented employees would prefer to work for the organisation with positive culture than high pay grade (Handley & Benton 2009).
Conclusion
From the above report, it can be concluded that the human resource department in BPO sector faces various problems in the recruitment procedure. There are several internal and external factors which affect the quality and effectiveness of the recruitment process. The factors which affect the recruitment procedure include bad reputation of BPO corporations, the rapid increase in competition, unqualified employees, lack of diverse culture and low salary packages. To address these issues, there are various policies that a company can implement to improve the recruitment procedure. To attract talented candidates in the recruitment process, the company should establish better diversity policies and provide higher salary packages to employees. The retention of employees can be improved by the establishing positive work environment and stabling performance-based incentive scheme. The demand for talented employees and age gap issues can be fulfilled by establishing an organisations training facility. These strategies can improve recruitment procedure of a BPO company and sustain their development.
References
Bharadwaj, S. S., Saxena, K. B. C., & Halemane, M. D. (2010). Building a successful relationship in business process outsourcing: an exploratory study. European Journal of Information Systems, 19(2), 168-180.
Caniglia, J., Ramachandran, K., & Khanna, V. (2005). U.S. Patent Application No. 11/159,819.
Conklin, D. W. (2005). Risks and rewards in HR business process outsourcing. Long Range Planning, 38(6), 579-598.
Doh, J. P. (2005). Offshore outsourcing: Implications for international business and strategic management theory and practice. Journal of Management Studies, 42(3), 695-704.
Ghodeswar, B., & Vaidyanathan, J. (2008). Business process outsourcing: an approach to gain access to world-class capabilities. Business process management journal, 14(1), 23-38.
Graf, M., & Mudambi, S. M. (2005). The outsourcing of IT-enabled business processes: A conceptual model of the location decision. Journal of International management, 11(2), 253-268.
Halvey, J. K., & Melby, B. M. (2007). Business process outsourcing: Process, strategies, and contracts. John Wiley & Sons.
Handley, S. M., & Benton, W. C. (2009). Unlocking the business outsourcing process model. Journal of operations management, 27(5), 344-361.
Lacity, M. C., Solomon, S., Yan, A., & Willcocks, L. P. (2011). Business process outsourcing studies: a critical review and research directions. Journal of information technology, 26(4), 221-258.
Mahmoodzadeh, E., Jalalinia, S., & Nekui Yazdi, F. (2009). A business process outsourcing framework based on business process management and knowledge management. Business Process Management Journal, 15(6), 845-864.
Mani, D., Barua, A., & Whinston, A. B. (2006). Successfully governing business process outsourcing relationships. MIS Quarterly Executive, 5(1).
Mehta, A., Armenakis, A., Mehta, N., & Irani, F. (2006). Challenges and opportunities of business process outsourcing in India. Journal of Labor Research, 27(3), 323-338.
Nadkarni, S., & Herrmann, P. O. L. (2010). CEO personality, strategic flexibility, and firm performance: The case of the Indian business process outsourcing industry. Academy of Management Journal, 53(5), 1050-1073.
Narayanan, S., Jayaraman, V., Luo, Y., & Swaminathan, J. M. (2011). The antecedents of process integration in business process outsourcing and its effect on firm performance. Journal of Operations Management, 29(1), 3-16.
Rai, A., Keil, M., Hornyak, R., & WüLlenweber, K. (2012). Hybrid relational-contractual governance for business process outsourcing. Journal of Management Information Systems, 29(2), 213-256.
Whitaker, J., Mithas, S., & Krishnan, M. S. (2010). Organizational learning and capabilities for onshore and offshore business process outsourcing. Journal of Management Information Systems, 27(3), 11-42.
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