European poll shows that outsourcing can enhance employees careers

Wednesday 12 January 2005 01:04 CET | News

New research into the impact on staff of an employers decision to outsource shows that if the right approach is taken, employees view outsourcing as an opportunity to develop specialisations in their field of work and to revitalise their career.

Independent research commissioned by LogicaCMG polled 200 employees from large organisations across the UK, Netherlands, France and Germany to find out their opinions before, during and after their positions were outsourced. The findings showed that there is still a high level of apprehension surrounding outsourcing. 84 per cent of those polled across Europe (94 per cent of all UK respondents) reported that they were concerned about the changes that would take place at the time of an organisations move to outsourcing. Concerns vary between possible changes that might take place, worries about job security and fear of the unknown. However, LogicaCMGs research revealed that despite early concerns, the majority of employees (91 per cent) say that these initial feelings were for the most part ungrounded. A French respondent stated; Once we were able to understand what was going to happen then we felt less nervous about it. Knowing what was going to happen and what might change was really helpful. Around 70 per cent of those polled commented that they felt more satisfied in their new job as compared to before, 49 per cent of all respondents citing outsourcing as an opportunity to develop further specialisation in their field of work. Employees in the Netherlands and France were most positive after a move to outsourcing and 71 per cent of the respondents see the change as an opportunity to revitalise their career. Over 30 per cent of employees in the Netherlands saw outsourcing as an opportunity to move into new industries, again enhancing their career prospects (30 per cent in Germany, 22 per cent in France and 16 per cent in the UK). The Pan-European study found that for employees to embrace and benefit from a move to outsourcing, the transitional process must be handled with open and timely communication at an early stage in the process. Indeed, if a company does not conduct the transition process effectively it risks losing its employees as 29 per cent of all polled reported that they would seriously consider moving jobs (40 per cent in the Netherlands, 34 per cent in the UK, 19 per cent in France and 16 per cent in Germany). Works councils and representative bodies played a crucial role in a successful transition process, the most common role being a key liaison point between the employees and the new company (82 per cent). In Germany and France, works councils often played the role of counsellor and negotiator and in the Netherlands the council most often acted as the key link with the new company. A German employee confirmed: I was able to communicate with many people to understand what was going to happen and how it might affect me. So far my job has got better. The poll showed that whilst the structure and content of the remuneration and employee benefits package are important, feelings of being part of the new team and involvement in the new company have the most positive impact on the overall perception of the outsourcing project. - Based on the findings from this poll and its own outsourcing expertise, LogicaCMG has developed its top tips for a successful transition: - Staff should be engaged at an early stage of the process through a clear communication programme that defines the key drivers and objectives of the change - Staff should be made aware of the benefits of outsourcing from the point of view of enhancing their careers and allowing them to develop specialisation, as well as the overall benefits to their company - Regular engagement between staff and managers and works councils is essential to allay fears, incorporate staff views, and generate the cultural fit required between the employees and the new company. A team based approach, with an allocated group leader is particularly effective - Allowing employees a feedback mechanism, either direct or through the works council is essent

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Categories: Payments & Commerce | Payments General
Countries: World
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