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
I believe only the mid to low end range of hotels would resort to outsourcing its cleaning staff. The mid to higher end hotels would need to uphold standards that outsourcing staff would never meet.
Cheaper better faster.
"where is my new zara jacket?"
"where is my used underwear?"
Originally posted by TehJarVu:"where is my new zara jacket?"
"where is my used underwear?"
If we are cheaper better and faster, maybe other countries will outsource to us instead.
outsource the ministers.