Rasan Samarasinghe – ITPro Insights

Outsourcing HR Processes: A Guide for Startups and SMEs in Sri Lanka

Managing HR can be challenging for startups and small to medium-sized enterprises (SMEs) in the software and IT industry in Sri Lanka. Balancing core business activities with HR responsibilities often strains limited resources. This is where outsourcing HR processes comes into play. Outsourcing can help businesses focus on growth while ensuring efficient HR management. But is it the right choice for your company? This article aims to explore the pros and cons.

What we can outsource?

Outsourcing HR processes can cover a wide range of activities, including:

Payroll Processing: Calculating salaries, deductions, and taxes, and ensuring timely payments.

Recruitment and Staffing: Outsourcing recruitment tasks such as sourcing candidates, conducting initial screenings, and coordinating interviews.

Employee Benefits Administration: Managing employee benefits programs, including enrollment, changes, and compliance.

Training and Development: Outsourcing training program design and delivery, skills development, and compliance training.

HR Compliance and Legal Support: Ensuring compliance with labor laws, regulations, and handling legal matters related to HR.

Performance Management: Implementing performance appraisal systems, monitoring employee performance, and providing feedback.

Employee Relations: Handling grievances, disputes, and fostering positive employee relations.

Pros of HR Process Outsourcing

Cost Savings

Outsourcing HR processes can be more cost-effective than hiring a full-time HR team. You only pay for the services you need, which helps manage budgets better.

Access to Expertise

HR outsourcing firms have specialized knowledge and experience. They stay updated with the latest HR practices and legal requirements, ensuring compliance and best practices.

Focus on Core Business

By outsourcing HR tasks, you can focus on your core business activities like product development, marketing, and sales, which can drive growth and innovation.

Scalability

Outsourcing allows for easy scaling of HR services as your company grows. You can adjust the level of services according to your needs without the hassle of hiring and training new staff.

Improved Efficiency

Professional HR firms have streamlined processes and advanced technologies to handle HR tasks efficiently, leading to quicker and more accurate results.

Cons of HR Process Outsourcing

Loss of Control

Outsourcing means giving up some control over HR functions. This can be a concern if you prefer direct oversight of HR activities.

Potential Miscommunication

Working with an external provider might lead to communication gaps. Clear and constant communication is essential to ensure they understand your company culture and needs.

Security and Privacy Risks

Sharing sensitive employee information with a third party can pose security and privacy risks. Ensure the outsourcing firm has strong data protection measures in place.

Dependence on External Providers

Relying heavily on an outsourcing firm can make you dependent on their services. If they fail to deliver or experience issues, it can impact your HR operations.

Customization Challenges

Outsourced HR services might not always perfectly align with your company’s unique needs. Customization can be limited compared to having an in-house team.

Outsourcing HR processes can offer significant benefits, especially for startups and SMEs. It can lead to cost savings, and access to expertise, and allow you to focus on core business functions. However, it’s crucial to weigh the pros and cons carefully. Consider your company’s specific needs, potential risks, and the importance of maintaining control over HR functions. With the right approach, outsourcing HR can be a strategic move that supports your company’s growth and success.

Other Side: Things Job Applicants Never Tell You

While we’ve explored the less-discussed aspects of the recruitment process from the recruiters’ perspective, it’s equally important to consider the other side of the equation- job applicants. Just as recruiters have their unspoken realities, job seekers also have things they rarely disclose during the hiring process. Understanding these hidden truths can help both recruiters and employers build more authentic and productive relationships with potential employees.

The Applicant’s Unspoken Realities

Current Job Satisfaction

What They Say: “I’m looking for new challenges.”

What They Mean: “I’m unhappy with my current job, boss, or company culture.”

Why It Matters: Knowing this can help you understand their motivations better and assess if your company can truly offer what they are seeking.

True Career Aspirations

What They Say: “I’m excited about this position.”

What They Mean: “I see this job as a stepping stone to something else.”

Why It Matters: Recognizing their long-term goals can help in offering roles that align better with their career paths and increase retention.

Strengths and Weaknesses

What They Say: “My biggest weakness is that I’m too much of a perfectionist.”

What They Mean: “I’m mentioning a safe weakness to avoid appearing incompetent.”

Why It Matters: Digging deeper can reveal true areas for improvement and how they handle challenges.

Reason for Leaving Previous Job

What They Say: “I’m looking for growth opportunities.”

What They Mean: “I left because of conflicts, dissatisfaction, or job insecurity.”

Why It Matters: Understanding the real reason can help in assessing their fit within your organization’s culture.

Work-Life Balance Preferences

What They Say: “I’m flexible with working hours.”

What They Mean: “I need a job that respects my personal time and family commitments.”

Why It Matters: Being clear about work-life balance can help attract candidates who align with your company’s policies and culture.

Salary Expectations

What They Say: “I’m open to discussing salary.”

What They Mean: “I have a minimum salary requirement but don’t want to seem greedy.”

Why It Matters: Having an open and honest discussion about salary expectations can prevent future dissatisfaction and turnover.

Company Research

What They Say: “I’ve researched your company thoroughly.”

What They Mean: “I’ve skimmed through your website and read a few reviews.”

Why It Matters: Providing more information about your company’s culture, mission, and values can help candidates make more informed decisions.

Bridging the Gap

Just as recruiters try to understand and mitigate biases in their processes, job seekers often aim to present the best version of themselves, sometimes glossing over less favorable truths. To make better hiring decisions, both parties can benefit from open communication and mutual understanding.

For Recruiters

Encourage Honesty: Create a safe space for applicants to share their true aspirations and concerns.
Ask Open-Ended Questions: This can help reveal more about the candidate’s genuine motivations and experiences.
Provide Clear Information: Be upfront about job expectations, company culture, and growth opportunities to help candidates make informed decisions.

For Job Seekers

Be Transparent: Honesty about your career goals and expectations can help you find a job that truly fits your needs.
Research Thoroughly: Understanding the company’s values and culture can help you assess if it’s the right place for you.
Communicate Needs: Clearly express your requirements for work-life balance, career growth, and other important factors.

By recognizing and addressing the unspoken realities on both sides, we can work towards a more authentic and effective hiring process. After all, transparency and honesty are key to building trust and ensuring long-term satisfaction for both employers and employees.

The Unspoken Truths About Recruitment, What They Never Tell You

Listen to what people say, but understand them by watching what they are doing.

This golden strategy unlocks many opportunities in identifying needs. When applied to recruiters, it provides valuable insights into their processes and priorities.

Who Are the Recruiters?

We refer to the individuals within an organization involved in shortlisting your CV, conducting interview panels, and making decisions about your salary and hiring confirmation. They play a crucial role in matching candidates with job vacancies.

Job Vacancy Advertisements is The Tip of the Iceberg

Job vacancy advertisements often focus on the hard skills required for a role. However, there are many unspoken requirements and preferences. Understanding these can give you a significant advantage.

The Interview Focus

About 80% of interviews focus on evaluating the candidate, leaving very little time for the candidate to learn about the company and the team they will be working with. This imbalance can leave candidates unaware of the full scope of the company’s needs and culture.

Unspoken Factors in Recruitment

Profile Picture in Your CV: Including a photo on your CV is a debated topic. The general recommendation is to include a picture if your appearance is relevant to the role. However, it’s fine to have or not have a photo. If someone shortlists your CV based on a positive impression of your photo, that’s great. If they decide not to choose you based on your photo, it’s also fine, you likely wouldn’t fit well in their environment anyway.

Sexual Attractiveness: While it may be uncomfortable to acknowledge, physical attractiveness can play a role in hiring decisions. Studies have shown that attractive individuals are often perceived more positively and may have an edge in job interviews. This isn’t fair, but it’s a reality in many workplaces.

Your Personality: Your personality creates an emotional response in others, which can influence their decision-making process. This response varies depending on the personalities of the interview panel. Positive feelings during interviews can increase your chances of being selected. Interviewers document their feedback using factual information, but these facts often stem from their emotions, even if unconsciously.

The Realities of a Competitive Job Market

In highly competitive job markets, your CV might sometimes go unnoticed among many applications. This is not necessarily a reflection of your abilities but can be due to recruiters’ oversight or the sheer volume of applications.

Emotional Decision-Making

No matter how skilled you are, hiring decisions are often influenced by personal preferences and emotions. Recruiters tend to select candidates they feel a connection with.

Solutions

It’s important to acknowledge that not all recruiters fall into the pitfalls mentioned above. Many recruiters and hiring managers are aware of these potential biases and actively work to mitigate them in their processes. Probably we could discuss them in a new article.

Moving Forward

Understanding these dynamics can help you navigate the recruitment process more effectively. Stay true to yourself, present your best qualities, and remember that finding the right job is also about finding the right cultural fit.

Do you have anything in your mind? Feel free to share in the comments section, and let’s discuss!

The Dual Challenge of Skills and Jobs in Sri Lanka’s IT Sector

Many countries are facing two major problems:

Not enough skilled people for skilled jobs (Supply).

Not enough skilled jobs for skilled people (Demand).

Which do you think is the bigger problem in Sri Lanka?

This is a question we asked our users a few months back. We received different answers. Some said the problem is a lack of skilled people, while others said it’s a lack of skilled jobs. Some even said we have both problems simultaneously.

Personally, I believe both problems exist in Sri Lanka at the time of writing this. Narrowing this question down to the IT industry, there is a significant challenge in finding skilled jobs for entry-level job seekers and a challenge in finding qualified workers for senior-level positions.

Why These Problems Exist?

Growth in the Academic Sector

The growth in the academic sector, both public and private, has led to a significant increase in the number of IT graduates. Universities and technical institutes are producing a large number of graduates each year. However, the market is not expanding at the same rate to absorb these fresh graduates. This imbalance results in a surplus of entry-level job seekers struggling to find appropriate positions.

Impact of COVID-19 and the Global Economic Crisis

The COVID-19 pandemic and the resulting global economic crisis have significantly slowed down the growth of the IT industry. Many companies have had to cut back on hiring and even lay off employees. The uncertain economic environment has also led to fewer opportunities for fresh graduates, further exacerbating the mismatch between the supply of skilled workers and the demand for skilled jobs.

Experienced Professionals Leaving the Country

Another critical issue is the brain drain. Many experienced professionals are leaving Sri Lanka for better opportunities abroad. This exit of talent leaves a gap in senior-level positions that are hard to fill. The lack of experienced mentors and leaders within the country also hampers the growth and development of junior employees.

Moving Forward

Entrepreneurs are key to solving these problems and taking advantage of opportunities in the IT sector. They can create jobs, drive innovation, and build strong networks to support the industry. By offering good salaries, career growth opportunities, and remote work options, they can attract and keep top talent, reducing the loss of skilled workers to other countries. Despite these challenges, there is always hope.

Do you have anything in your mind? Feel free to share in the comments section, and let’s discuss!

Recruitment Success: The Equation

Developing a strong brand and effective advertising are both crucial for recruitment success. If either factor falls short, it significantly impacts the overall success of recruitment efforts. To illustrate this concept, I’ve created the following equation.

**Recruitment Success = Strong Brand * Advertisement Reach**

The Importance of a Strong Brand

Trust and Reputation: A strong brand builds trust with potential candidates. They are more likely to apply to a company that has a good reputation.

Attracting Top Talent: High-quality candidates often seek out companies with a strong brand as they want to be associated with successful and reputable organizations.

Retention: Employees are more likely to stay with a company that has a strong, positive brand. This also reduces recruitment costs over time.

Advertisement Reach

Visibility: Reaching a wide audience ensures that more potential candidates are aware of the job openings.

Targeted Recruitment: Effective advertising strategies can target specific demographics, ensuring that job postings reach the most suitable candidates.

Examples of Challenging Situations

Poor Brand, High Reach Situation

If a company has a poor brand, no amount of advertising can compensate for the lack of trust and reputation. Candidates may see the job posting but choose not to apply.

Strong Brand, Low Reach Situation

Conversely, even a strong brand will struggle to fill positions if job advertisements don’t reach enough people.

Balancing Both Factors

Building a strong brand should be a priority for companies looking to improve their recruitment success. Coupled with effective advertising strategies, it ensures that the right candidates are not only aware of the opportunities but are also eager to join the organization. Investing in brand building and reputation management, alongside smart advertising spend, will give the best results in attracting and retaining best talent.

Welcome to ITPro Insights!

Hi there!

I’m Rasan Samarasinghe, the founder of itpro.lk. I warmly welcome you to ITPro Insights, the official blog of ITPro.lk.

Here, I’ll be sharing valuable content for both job seekers and recruiters. Whether you’re looking for your next career opportunity or seeking top tech talent, this blog will have something for you.

I’d love to hear your ideas and suggestions for topics you’d like us to cover. Thank you for joining us!

Warm regards,

Rasan