Outsourcing HR Can Create Profitable Scenario

PeopleScape Limited is a strategic business unit of Market Access Provider Limited. Over the last 4 years PeopleScape is doing business as a human resource consultancy farm. They are doing their business on behalf of their clients such as Unilever, Nestle, Coca Cola and Robi etc.

My internship report is based on the activities and Human Resourcing processes of PeopleScape entitle ‘How Outsourcing HR created a profitable scenario for Nestle and PeopleScape Ltd.’ I have tried my best to cover every part of activities and the related process. As I have in the recruitment division, so my job and responsibilities were limited. So, I tried here to input some of point which I was not that much involved.

Chapter one is discussed about the limitation which I faced most and also a brief summary of my report and my analysis. In chapter two, I have discussed the organization overview at the point of organizational and also my own view and also my duties and responsibilities and the projects the functional services of PeopleScape and some theories regarding recruitment. I tried to provide every detail of the services that I was involved that I was involved in my internship period. In chapter 3, on project part I have discussed the core activities and benefits of nestle and PeopleScape. The activities which also build a scenario of profitable for Nestle and PeopleScape. I also have discussed the functional services of PeopleScape and some theories regarding recruitment which also an analyzing part of my report about my learning, and the output of my learning. Some of SWOT analysis also discussed there for the organizational part.

I tried to provide every detail of the services that I was involved. For the analysis part, I talked with some employees of PeopleScape and asked them questions related the activities of PeopleScape with Nestle. Based on their answers I interpreted the data tried to figure the effectiveness. Before drawing any conclusion based on this report it may be noted that there might be in lack in data, but still the report may be useful for designing any further study.

Objective of the Study

Specific objectives of project:

• To focus the activities of PeopleScape for Nestle Bangladesh
• To calculate the total number of year employees are serving for Nestle
• To assess how the employees came to know about vacancy
• To measure the employee test they have taken for the job To determine whether there was an agreement before the appointment letter
• To measure the type of agreement
• To measure whether the employees is working their desired post

Methodology

Some simple and common methods have been carried out in making the report. Sources of information:

Primary:

I talked to my supervisors, who conduct the selection and recruitment of the organization and are directly responsible to make their subordinates well motivated. I tried to get the information by means of a set of questionnaires along with employees who are directly involve with the project and also the employees of nestle (Appendix)

Secondary:

I also went through PeopleScape websites and the reports regarding this topic, which I believe will give me a wide breadth of information that will make the report more informative. I also took some support from the company profile and the contractual report of PeopleScape.

Origin of PeopleScape

PeopleScape is a wing of Market Access Providers Limited (MAPL), an undeniable leader in Bangladesh for providing absolute marketing declaration from corner to corner a very spacious range of customer support. More than the last 4 years the company has skilled a stable growth in business. MAPL having the most absolute assortment of Marketing Solutions for marketers aiming to win in Bangladesh Market, ranging from First Moving Consumer Goods to Information & Communication Technology; Specialty Goods to Industrial Products; Consumer Activation to Direct Sales; Direct Marketing to Urban and Rural Distribution (outreach); Trade Marketing to Event Management; Creative Communication to Brand Experience Management. PeopleScape has grown and formed from MAPL’s proficiency in aligning Clients HR program and Deliver Model with their Business Objectives, and thereby optimizing their investment in HR Processes and Programs.

• PeopleScape started its operation in 2007 under MAPL. Mr. Haji Maminul Kabir was the founder of PeopleScape. Shoily Israt Fatima was last head of business. PeopleScape has branches in Nepal and Dubai.

PeopleScape’s Clients

Recruitment

Recruitment forms the primary stage in the procedure, which continues with selection and come to an end with the placement of the candidate. It is the subsequent step in the procurement role, the first being the manpower planning. Recruitment makes it possible to get the number and types of people necessary to ensure the sustained operation of the organization. Recruiting is the realizing of potential applicants for actual or plausible organization vacancies. In other words, it is a ‘linking activity’ bringing together those with jobs and those seeking jobs.

Source of Recruitment

Internal Sources

Internal Sources include personnel already on the pay-roll of the organization. Whenever any vacancy arises, somebody from within the organization may be looked into:

• Internal promotions
• Referrals
• Former employees

Merits

• It improves the morale of employees, for they are assured of the fact that they would be preferred over outsiders when vacancies occur

• The employers are in a better position to evaluate those presently employed than outside candidates. This is because the company maintains a record of the progress, experience and service of its employees

• It promotes loyalty among the employees, for it gives them a sense of job security and opportunities for advancement

• As the person in the employment of the company are fully aware of, and well acquainted with, its policies and know its operating procedures, they require little training, and the chances are that they would stay longer in the employment of the organization than a new outsider would

• It is less costly than going outside to recruit.

Demerits

• There are possibilities that internal sources may “dry up”, and it may be difficult to find the requisite personnel from within an organization
• Since the learner does not know more than the lecture, no innovation worth the name can made. Therefore, on jobs which require marginal thinking, this practice is not followed
• As promotion is based on seniority, the danger is that really capable hands may not be chosen.

External Sources

External Sources of recruitment refer to Prospective candidates outside the enterprise. They usually include new entrants to the labor force. The external sources are

o Advertisement in newspapers
o Campus and Online recruiting
o Casual job seekers
o Consultants and Job fair Merits

• External sources provide the requisite type of personnel for an organization, having skill, training and education up to the required standard
• Since persons are recruited from a large market, the best selection can be made without any distinctions of caste, sex or color
• In the long run, this source proves economical because potential employees do not need extra training for their job

Demerits
However, this system suffers from what is called “brain drain,” especially when experienced persons are raided or hunted by sister concerns.

Process of Recruitment

Steps in recruitment process

The process starts with job planning, which among other things involves analysis of the present and future needs for personnel with different kinds of competence and for different tasks. This first component of the process may result in a decision to prepare for new jobs and announce job opportunities.

In the second step of the search process after a vacancy has been defined on the basis of job planning, the employer has to make his choice between alternate ways to spread and formulate information about the vacant position. He can, for example choose between different ways to formulate the information about what experience and personal abilities of the potential employee, etc.,

The third and final search decision confronting the employer is to determine which one of the applicants to hire for the job opening.

Process of Recruitment

Service

Recruitment and Headhunting

• Local Recruitment
• International Recruitment
• Internal Recruitment

Reference Check: The professional team of PeopleScape with a corporate network makes sure that the required candidate of clients is coordinated with qualifications and qualities.

Talent Mapping: In terms of talent mapping, PeopleScape has the proficiency to suit the needs of clients.

Process Outsourcing

Payroll Management: It allows PeopleScape to look over every human resource related issues of employees to become an employer.

Benefit Management:  

• We deliver quality, choice & value in employee benefit.
• We offer wide spectrum of benefits for you to choose from.

Exit Process Management: Exit Interview by the specialized team of PeopleScape, digs out the most crucial and unbiased information thereby enhances the retention process and contributes to your organizational development.

Analysis and Interpretation of the Data

This analysis is based on the feedback of the employees who were surveyed for the purpose of the study. It’s a yearly survey of PeopleScape which create a summary of knowledge that how PeopleScape is working in an effective recruitment process.

Employees mostly got information about the vacancy in this company through referrals. Two employees became informed through on-line.

From the data we can see that only one had to face more than 3 interviews and most of the employees have given two interviews. Three employees only faced one interview.

Interpretation

Various types of tests are being taken for the job. In the table we can see what types of tests are being taken with how many employees.

60% employees of the branch said that they got agreement before starting and 40% employees said that there was no agreement at the time of joining.

Interpretation:

Most of the employees said that they are working in their desired post and four employees said no for their answer. One employee didn’t answer of this question.

Specific tasks carried out at PeopleScape

Duties & Responsibilities

The Report has been made as a part of the Internship of the BBA program of BRAC University (BRACU). However, there have been some other hidden reasons like getting accustomed to the pragmatic working environment, making the use of everything that has been learnt as yet in the academic courses of BBA program and most importantly demonstrating a clear picture of HRD of PeopleScape Ltd.

Representing the overall Human Resource Department and their activities including planning, recruitment, selection etc and tracing out places where it is confronting difficulties and coming up with the best possible solutions.

In PeopleScape, I worked in Recruitment department. As a HR consultancy farm, one of our major responsibilities was to place a suitable candidate according to the requirement of our clients. In my internship period, I have helped my organization to recruit candidates for Unilever, Nestle, Bursiform, Mutual Foods Ltd, Coca Cola, Reckitt Benckiser and GE Healthcare. For each recruitment our clients provided a job description and according to that we provided the appropriate candidate for interview. For this purpose, my duties and responsibilities were-

• Reading the job description
• Collect resumes
• Shortlisted resumes
• Contact with candidates over phone
• Provide necessary job details
• Update candidates information and make a data based report• Forwarding the resumes to my supervisor

To collect resumes our sources were

• Bdjobs.com
• Internal source

After receiving the prerequisite, my supervisors posted a job detail in bdjobs.com. According to the point, I searched bdjobs.com and collected resumes. After collecting the resumes, I saved in a file and start calling via phone. In conversation, I asked candidates about their job experience, current job responsibilities, there expectation and share the job details. If they are interested for the job than I saved their resumes in a different file. After shortlisted the resumes, I attached the logo of PeopleScape and convert the resumes into PDF format. Afterward I forwarded the resumes to my supervisor and again shortlisted the resumes and forwarded to our respective clients. Later than, I generate a data base report in MS Excel. In that report, I put a summary of the shortlisted candidates. In summary I place candidates-

• Name
• Age
• Educational Background
• Educational Institute and CGPA
• Job Experience (if any)
• Current and Expected Salary

Following this, our clients gave us a feedback and share an interview date. I formulate an interview schedule in MS Excel and share it with the short listed candidates over phone. I sent them a message containing interview schedule, venue, and name of the position. Before the day of interview, I again called them and remind them about the interview.

Zen Mobile

My first project in PeopleScape was the recruitment of Zen Mobile project for the Head of department, my duties and responsibilities were much broader. This position is only intended for the senior level. We have collected the resumes from Bdjobs and Different companies Head of departments and also some references profile. 15 candidates were shortlisted from 150. The recruitment steps are-

• Written Test
• Preliminary Interview
• Assessment Centre
• First Interview with Directors
• Second Interview with HR Head of Head office of India
• Medical Test

Written Test: PeopleScape is responsible for the first three steps. After shortlisted the resumes both me and my supervisor fixed the written test schedule. Total 63 candidates were present for the written test. The written test went for 4 days. There 80 MCQ questions and the duration was one hour. I was the sentinel and also checked the scripts. Following this, I put the marks in database

Preliminary Interview: The preliminary interview took place right after the written test. This interview contained 10 marks. After getting the marks, I put in database. Considering the combined marks of written test and interview, we have selected 18 candidates for the assessment centre. Assessment Centre: It is a whole day program. Though 18 candidates were selected, but were present. We divided the candidates into two shifts. Three assessors were present to judge the candidates. I have provided the necessary effects such as job description, schedule, blank page, pen, pencil, marker, case with questions and without questions, name tag etc. Candidates have to prepare the answer and do a presentation. Assessors tried to judge candidates’ communication skill, presentation skill, problem solving skill, listening skill etc. During the assessment assessors gave them the marks for different criteria.

Project Part

Introduction of the Project

The main objectives of the report were to know about the very important working process and activities done by PeopleScape on behalf of Nestle. Here I used Nestle to show that how PeopleScape is working for the multinational companies as their client. Some of important side which I considered to show the fact that how Nestle and PeopleScape is working together and staying in a profitable outcomes.

PeopleScape & Nestle

Nestlé is the world’s famous company. It is a largest nutrition company in the world. Its largest product segment, sales range and geographical presences make it prominent. It wrap all field of nutrition: infant formula, milk products, chocolate and confectionery, instant coffee, ice-cream, culinary products, frozen ready-made meals, mineral water etc. The company has also pet food. It has market leadership in most of the world market which make it to gain huge turnover where more than 94 percent of the sales coming from the food and beverage sector. Nestlé is all over the world with around 230,000 people working in more than 84 countries with 466 factories and with sales representatives in at least another 70 countries. Sales for 2007 were CHF 107.6 billion, with a net profit of CHF 10.6 billion.Nestlé’s well-known brands are Nescafé, Nido, Maggi, Polo, Smarties, Milo, Perrier, Friskies, KitKat, Crunc etc.Some of the products have highest sales records. For example 3,000 cups of Nescafé are consumed every second throughout the world and KitKat merited an entry in the Guinness Book of World Records as the world’s bestselling
chocolate bar with 418 Kit Kat fingers eaten every second around the world.

At Vevey, Switzerland, the headquarters of the company is currently located. It is founded in 1866 by Henri Nestlé as a named FarineLactée Henri Nestlé Company. It is initiated in 1905 by merging with Anglo-Swiss Milk Company, which was started in 1866 by Brothers George Page and Charles Page, and the FarineLactée Henri Nestlé Company. The company grew During the First World War and following the Second World War the company raised considerably by offering condensed milk and infant formula products.

The Company’s strategy is directed by several primary principles. Nestlé’s existing products rise in the course of innovation and renovation which maintain a balance in geographic activities and product lines. Long-term potential is never give up for short-term performance. The Company has an intention to bring best product to people which they demand. Even today the company is increasing with an organic growth of 6.2% in the year 2010. The company also had sales of CHF 109.7 billion in the year 2010. Fig 2.1 illustrates a comparison of sales of all the top food and beverage companies in the year 2010. The figure clearly shows that Nestle is way ahead of its competitors in the Food and Beverage sector.

Nestle Bangladesh

At present in Bangladesh Nestlé products have many products. In 1980s Nestle products were available through different importers. These products were imported from Nestle International. Later in the 1980s a distributor company of Bangladesh called Transcom Ltd got into a contract to be the local partner of Nestle. Transcom began to do business as the sole distributor of Nestle brand milk products in Bangladesh with a deal of 60-40.Nestlé Bangladesh Limited started its first commercial production in Bangladesh in 1994. In 1998 when Nestlé Bangladesh became a fully owned subsidiary of Nestlé S.A (Nestle South Asia), it took over the remaining 40% share from their local partner.

Nestlé Bangladesh’s vision is to be recognized as the most successful food and drink Company in Bangladesh, generating sustainable, profitable growth and continuously improving results to the benefit of shareholders and employees. The corporate office of Nestle Bangladesh Limited is situated at Gulshan, Dhaka. The local factory is located at Sripur, which is around 55 km north of Dhaka. The factory produces different product such as instant noodles, cereals and repacks milks, soups, beverages and infant nutrition products.

Today Nestlé Bangladesh Ltd. is a renowned organization. The Company holds a strong position with their policy of constant innovation and renovation. With the aim of providing the best quality food to the people of Bangladesh, it is concentrating on their core competencies and their commitment to high quality.

Core Benefit of Nestle from PeopleScape

1. Proper recruiting process: Nestle Bangladesh is getting a proper systemic recruitment process from PeopleScape as the main job of PeopleScape is the recruitment part. At the result, Nestle getting and systematic process of recruitment and also a reliable source for their recruitment, PeopleScape is bound to present them a proper recruitment Process.

2. Get eligible and energetic candidates: To have a systematic process of recruitment, Nestle Bangladesh is getting a bucks of talented and energetic candidates. PeopleScape is also responsible for the training of the employees. On that point, Nestle Bangladesh is getting eligible and energetic candidates.

3. Riskless and less liability for the candidates: When all the liabilities and responsibility goes to PeopleScape, than nestle comes in riskless and less liabilities for employee and also for the candidates. The activities from short listed to training and also the compensation, all activities done by PeopleScape.

4. Market Demand increasing: PeopleScape is also creating a demand scenario for the new generation as offering some contractual job which also preventing the unemployment. PeopleScape is offering for the quality oriented candidates so that the company’s quality can be increase.

5. Economical Growth high: The economical growth is also becoming high for the quality of candidates and the market demand. It also is increasing the profitable margin.

How PeopleScape & Nestle is benefited economically Salary as Contractual

The recruitment process of NESTLE is conducted by PEOPLESCAPE. Therefore the cost of recruitment starting from short listing CVs to training of the selected candidates of NESTLE is zero. They are getting their employees trained up by PEOPLESCAPE. So in this regard their (NESTLE) profit is 100%. Nevertheless, NESTLE don’t have to pay any indirect cost also like time and effort in short listing CVs, interviewing candidates, training them etc. the whole process is done by PEOPLESCAPE. As a result PEOPLESCAPE gets 50% of the basic salary of the selected candidate of nestle up to 1 year of joining of the employee as a variable remuneration. Furthermore, it also receives 12% fixed remuneration for human resource outsourcing from NESTLE.

Overall observations

After overall observation we can see that the main relationship between PeopleScape and Nestle is PeopleScape recruit employees on the basis of contract for Nestle. Not only recruit employees, PeopleScape train their employees as requirement of Nestle. PeopleScape also do all the benefits and all the compensation related deals of Nestle for both contractual and regular employees.

Moreover PeopleScape ensure all of the contractual employee’s salary and compensation matters. So we say that PeopleScape is the main HR consultant of Nestle. Working with PeopleScape, I found some of lacks that are needed to solve for their betterment. Findings:

From the point of view of PeopleScape, I have found some points which are needed to solve for a better output. Such as:

• Lack of proper HR/administration system
• Lower commission rate
• Lack of management system
• Low Employee satisfaction
• Low pay scale

There are some positive sides which I also have included –

• Flexibility
• Well build network system
• Work environment friendly
• Efficient workforce
• Strong ground for leaning

Conclusion

Human Capital is becoming more vital for economic development of Bangladesh in mobilizing capital and other resources. PeopleScape is also extending such contributions to the advancement of the socioeconomic condition of the country. It is committed to provide quality services, maintain corporate governance & support Outsourcing business as a continuation of excellence in performance since its incorporation from MAPL. They are fully committed to conduct its business activities in economically, environmentally & socially sustainable manner. It has also ensured hygienic & convenient work environment for its employees and respect the worth & dignity of each employee.

HR programs and policies are integrated within a larger framework facilitating, in general, the organization’s mission and specifically its objectives. PeopleScape has a good HR policy. They believe that ensuring a right people in a right place at the right time can give the optimum output.

So always they put a great importance to ensure that they have the right people having required skills and knowledge. They also revise the recruitment policy thoroughly best on the demand. They have some uniqueness in their selection process but they are very much careful and concern for selling employees to outside the country. The specific strategies used and decisions made in the staffing process will directly impact an organization’s success or lack thereof.

Nestle and other Multinational companies in Bangladesh doing their business in a profitable margin and the high economic growth by the help of some 3rd party companies like PeopleScape who are working for them to build a qualitative figure. PeopleScape is Human resource support for Nestle and other Multinational companies.

Today PeopleScape is growing faster than ever with a rapid pace in this human capital sector and the employees are the leaders who are assigned to choose the very best from the existing market to fulfill the client’s needs through a good recruitment system.