Do you have a high attrition rate at your outsourcing company? Do you have more employee turnover than you can handle? Sometimes it is better to let an outside agency handle some of your hiring and firing. It makes your life easier, but, can also add a quality of elasticity to your company’s work capabilities.
I remember hiring several companies in India. Every three months, they would give me a new programmer. I didn’t like this. I want to know who I am working with so I know what to expect. But, imagine the hell I would have gone through if I had to hire these people myself. I would lose my mind! It is easier to let these other guys do the hiring and firing, unless you specialize in HR.
Remember, the rule of thumb in outsourcing is:
Figure out what your core capabilities are and do that work in-house
Everything else — outsource, outsource outsource.
When you calculate the cost of a worker, you need to have a formula. Keep this though acutely in your head. The cost of the employee is:
The office space they occupy
The cost of replacing them if they quit early
The cost of training them
The cost if they damage your relationships with your clients.
This formula clearly shows how it might be cheaper to pay workers more for their loyalty. By the way, loyalty is a word that dropped out of most dictionaries in 2011. Fooling around with new hires could cause you a lot of damage, not to mention what you invested in training them. If you outsourced your HR operation, it might cost you a few hundred or a few thousand to replace a single worker. In my mind it makes sense to remind people that they get a raise every six months whether they deserve it or not — unless they get fired. If your raises are good enough, and you keep a few seasoned senior employees around with salaries to boast of, your attrition problem might go away (by attrition.)
Speaking of employee turnover.
My favorite Tunisian restaurant has a lot of turnover too.
They call these potato and egg turnovers Brik.
“May I have some mortar for my brik please?”
Instead of having your employees get fired or quit causing high turnover.
Put them in a large sheet of dough and make a turnover out of them to set an example for your other workers!