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Shanshi Group: Break through the challenge of talent mismatch, and take over the traditional employment model with manpower outsourcing

The most typical product of the Internet era is the "platform organization", the most obvious feature is "not for me, but for my use", we do not care who the resources belong to, but pay more attention to how to integrate resources together, give full play to the maximum benefit, this trend is also promoting enterprises to make homeopathic changes. In order to reduce hierarchical redundancy and improve response speed and combat efficiency, the organizational form of enterprises will become more and more platform-based, agile and flexible.

From the perspective of the labor market, the rapid development of the platform economy, the obvious intergenerational update of job seekers' preference for employment, the talent recruitment and employment model of enterprises have changed, and they inevitably experience a reaction period of "labor pain", so enterprises turn to the form of human resource outsourcing to coordinate the allocation of human resources.

High rates of brain drain and mismatch hinder organizational growth

Manpower outsourcing improves recruitment efficiency and accuracy

This "labor pain" is even more intense in the peak employment season.

From 2019 to the first quarter of this year, BOSS Zhipin's monthly active users soared from 11.5 million to 46.6 million, and its operating indicators such as profit, number of paid enterprise customers, and average monthly active users in the first quarter all hit record highs. The more profitable the recruitment software is, the more it reflects the frequent job seekers who change jobs and turnover, and it shows a trend of increasing with generations, and there is even a monetization track of "leaving bloggers" in the self-media industry.

Shanshi Group: Break through the challenge of talent mismatch, and take over the traditional employment model with manpower outsourcing

According to the Future-Free survey, the post-00s have a shorter burnout period, with more than 3 percent of respondents working for an average of 6 months to 12 months per job, far lower than the average on-the-job time of the post-90s and post-80s generations (30.5% for 2-3 years). As a result, companies are caught in a state of mixed joy: they just recruit a group of energetic fresh graduates, and after a few months, they notify HR to say goodbye, and the company's repeated recruitment costs rise.

Moreover, more companies not only have to fill the loss of the new generation of employees, but also recruit the right candidates with both experience and expertise in the massive talent pool, and the screening cost is not small...... The worst thing is that HR spends a lot of time recruiting in the early stage, and in the end, either because of not doing a good job of background research, or because of the wrong understanding of talent portraits, resulting in recruiting the wrong person, and talent mismatch further hinders the growth of the organization.

What should companies do when they lack a keen understanding of the talent market and are aware of the career trends of the new generation, and the first thing that will be affected is the recruitment process?

More and more companies choose to outsource the recruitment process, and move the funds invested in the online recruitment platform to the human resource outsourcing expenditure, which is almost the same cost, but can bring several times the improvement of recruitment quality and efficiency.

Whether it is the recruitment process outsourcing for ordinary positions, the headhunting search for high-end positions, or the professional background investigation before employment, their essence is the outsourcing of talent supply. Compared with the talent screening of enterprises looking for a needle in a haystack, manpower outsourcing is equivalent to adding talent search tentacles that extend to various channels for enterprises, which is large and wide, accurate and fast, and effectively reduces the unnecessary cost of enterprises to recruit people and recruit the wrong people.

Internal transaction costs are climbing

Manpower outsourcing flexibly coordinates resources to reduce costs, increase efficiency and control risks

When an enterprise develops to a certain stage, in order to expand its market share, gain stronger influence and cost control capabilities, it will adopt a large-scale business strategy, which is especially common in the chain retail industry.

However, enterprises must be wary of falling into the "economies of scale" and "diseconomies of scale" swing, according to the Coase transaction cost theory, the expansion of enterprise scale will bring about internal management, resource allocation, department coordination, communication costs rise, if the internal transaction costs continue to be higher than the external transaction costs, enterprises may consider reducing the scale, such as business restructuring, layoffs and optimization are the usual means of reducing costs and increasing efficiency.

Shanshi Group: Break through the challenge of talent mismatch, and take over the traditional employment model with manpower outsourcing

@岗位外包: Take over the traditional employment and quickly adapt to business fluctuations

In the long run, personnel changes will bring rising costs such as recruitment, training, and turnover, while the organizational personnel efficiency will become less and less effective. On the other hand, rapid changes are easy to bring hidden risks, this month's business development is good, the team will expand, the next month the business shrinks, the team will be disbanded, the traditional employment model is difficult to adapt to the frequent adjustment of the business, labor disputes skyrocketed...... How can human resource allocation quickly adapt to business resilience and reduce compliance risks and operating costs?

Traditional labor dispatch is sufficient to meet the needs of temporary, auxiliary and substitute jobs, but it is still unable to meet the ever-changing challenges of mass employment due to the restriction that the number of dispatched workers shall not exceed 10% of the total number of employees.

Enterprises are looking to more flexible manpower outsourcing services, according to the statistics of the "Research on the Development Trend of Human Resources Outsourcing Industry and User Insight Report" of CIC Consulting, job outsourcing accounts for as much as 46% of the manpower outsourcing services purchased by enterprises.

If an enterprise has non-core, temporary, volatile and repetitive batch positions, it can adopt the post outsourcing model to outsource all human resources work such as recruitment, training, and resignation management, which can not only avoid labor disputes and reduce personnel turnover costs, but also allow enterprises to focus on high value-added businesses and improve their core competitiveness.

@业务外包: Integrate external professional resources to release the best benefits

In addition, some companies asked, "We haven't built up our in-house professional capabilities such as call service/IT/human/financial/knowledge services, so can we outsource this part of the business together?" Of course, compared to the human resource management work of the post outsourcing limited to the target position, the business outsourcing model can contract all the business processes of the position.

As mentioned above, the Internet era pursues "not for me, but for my use", the advantage of the business outsourcing model is to "integrate external resources for my use", by outsourcing the "human resource management + non-core business processes" of the target position, enterprises can effectively reduce the direct management of a business area, and avoid the operational risks and costs caused by laymen.

From this perspective, it can also be seen that as long as enterprises have the need to "reduce costs, increase efficiency, control risks, improve resource utilization, and enhance agile response", they can use business outsourcing to focus on core strategies and release the best operating benefits.

This year, the Ministry of Human Resources and Social Security updated the data on labor relations in 2023, and the number of labor dispute cases nationwide was 3.85 million, involving 4.082 million workers, a record high. With the in-depth adjustment of the industrial structure in mainland China, involution is prevalent in all walks of life, and the disputes between workers and enterprises are increasing year by year, which also reflects the increasing awareness of workers' rights protection, and the need for enterprises to strengthen compliance operations and risk response capabilities.

According to the survey of the "White Paper on Human Resource Outsourcing Service Procurement", 70% of the surveyed enterprises said that human resource outsourcing can meet the company's own personnel streamlining and external efficient manpower supplementation, and cost reduction, efficiency improvement, and risk control are still their concerns.

In response to the employment challenges of enterprises, Shanshi Group not only maintains the observation of labor market trends, provides enterprises with local employment consultation and knowledge sharing in a timely manner, but also establishes a service iron triangle composed of project managers, recruitment delivery consultants, and middle and back office experts, and strives to build the delivery capacity of "industry + special + national + new media + human resources alliance" to form a set of high-quality service delivery closed loop.

So far, Shanshi Group has set up more than 40 branches across the country, with nearly 100,000 monthly service and management employees and more than 3,000 partners. Starting from 2024, Shanshi will also add professional background investigation and ITO outsourcing services, and provide more enterprises with four major solutions, including talent supply and optimization, flexible employment and service outsourcing, organizational development and talent training, and human resources digitalization, through the product strategy of "service + digitalization", and the business map is more mature and perfect.

With its deep cultivation in the human resources service industry, Shanshi Group has won praise from many benchmark corporate customers such as Shein, China Resources Vientiane Life, COFCO Coca-Cola, Baidu Marketing Service Center, Chimelong Group, Yanlord Property and so on. In the future, Shanshi Group will continue to uphold the mission of "helping talents, customers and industries to be more successful", serve the strategy of giving priority to employment and strengthening the country with talents, and win-win with the enterprise and accompany the industry to take off.

Shanshi Group: Break through the challenge of talent mismatch, and take over the traditional employment model with manpower outsourcing