Jul 26, 2012 - ST Forum
I READ Monday's article on outsourcing with dismay ('Hotels
outsource cleaning services').
As a management concept, outsourcing seems an excellent
idea.
It lowers cost by converting fixed staff cost to variable cost,
and it allows companies to scale up or down depending on their
needs.
Also, it takes away all the headache of managing staff issues,
from recruitment to medical leave to salaries.
If the staff do not meet performance standards, the company can
simply ask for them to be replaced, instead of spending time to
train them.
However, companies and management gurus who extol the virtues of
outsourcing tend to ignore one key point, that is, staff are
people.
They treat staff as a cost, and something easily
replaceable.
For the outsourcing companies to win contracts from the hotels,
they need to provide services at competitive rates and yet make
profits.
In an outsourcing environment, it is the workers who get
squeezed in terms of lower wages and benefits.
Consequently, outsourced workers are less motivated because they
do not have a sense of belonging to the company.
They take less pride in their work, are less loyal to the
outsourcing company that they work for, and are willing to job-hop
for $50 more.
If they are unable to find local workers willing to do the job
for the salaries they are willing to pay, outsourcing companies
will have to resort to foreign workers, thus creating a deepening
dependence on the latter.
As for the hotels mentioned in the article, outsourcing is not
the right move by their managements.
In the hospitality industry, service is the No. 1 priority, and
cleaning services are an essential part of hotel operations.
By outsourcing such an essential function, the hotels are
sending the wrong message to customers and staff. If you are not
treating your staff properly, how can we expect you to treat your
customers properly?
Patrick Tan
