The process of handling the welfare and responsibilities of an organization employee is always a challenge to big and small businesses alike. The process of developing competitive pay packages for employees and complying with the regulations of the government is always a challenge even for big businesses with a dedicated human resource department. As a result, many businesses result to outsourcing some of their human resource services to professional human resource organizations. These organizations are professional human resource specialists that provide variety of human resource functions without huge overheads in cost .The services offered by these companies include compliance to government regulations, employer liability, employee administration, employee recruitment, and employee training and development (HROA, 2008). Wal-Mart is one among the biggest world retailer to embrace the process of outsourcing some of its human resource responsibilities to an internal team of specialized human resource executives (Broader, 2004).
In the year 2005, Wal-Mart retail stores initiated a project of developing a different level of human resource executives. This project entailed creating a central human resource executive in charge of ten stores across the United States. The purpose of the human resource executives was to improve the overall coordination of the human resource services by outsourcing the human resource services of ten stores to a central human resource executive. This program was supposed to make sure that there is a central human resource manager to handle the employee responsibilities of the company for several stores rather than having a human resource manager for each of the retail stores (Herbst, 2005).
This initiative is one of the management strategic policies of the company that the company uses to enhance career opportunities in the company. The program is still under implementation and the company is assessing whether this model of outsourcing the human resource responsibilities of ten stores to a single human resource manager will lead to a fall in employee turnover in the company. By the year, 2005 the company was grappling with an employee turnover of around 50 percent and if the stores ascertains that the program does work in improving the coordination in the stores and reducing employee turnover then the program will be rolled throughout the united states (Herbst, 2005) .
Another way the Wal-Mart stores have created an avenue of improving the nature of its human resources is the creation of a team of five human resource experts that have the mandate to deal with all the issues that arise with employee in the company. The team deals with any eventuality that arises when dealing with employees in the company. The members of this five-member team have wide experience in human resources and legal backgrounds .the team helps Wal-Mart to tackle challenging situations when dealing with employees .The team advices the line managers of the Wal-Mart stores concerning employee welfare like special needs of some of its employees and advising line managers on the best employee practices. The team is also available 24 hours a day (Walmart, 2005).
By initiating this outsourcing program, The company has empowered the store managers of the company because they have eliminated the task of handling many responsibilities of employee management from the store managers .The store managers can therefore concentrate on key areas in management like operations. this team has also helps in enhancing the work environment of subordinates within the company because employees can focus more on the job rather than dealing with line managers who ins some cases may not be able to handle challenging human resource issues (Walmart, 2005).
The main purpose of this team of experts was to offload some of the human resource responsibilities of the line managers and eliminate some of the responsibilities like keeping abreast of employee’s human resource practices and laws and regulations. By giving the line managers, a mentor through outsourcing their employee responsibilities to this team of experts the company has ensured that it relived some of the line manager from the demand of the job and therefore improved the job environment of the line managers. This form of human resource outsourcing has helped in cutting some of overheads of the company. Cost cutting is one of the strategic human resource management policies of the organization that aims at improving coordination and performance of the company (Wal-Mart, 2005).
The existence of a team of five legal and human resource experts is very essential in improvement of employee satisfaction rates in the company. The employees can forwards their grievances and complaints to a special expert team that have experience in human resources to handle the issue effectively. Outsourcing of the human resources to this specialized team also increases the flexibility of the organization to meet the changing needs of the workers in the business world (HROA, 2008).
One of the main benefits that Wal-Mart stands to gain through outsourcing its human resource services to specialized teams is the effectiveness in operations .Human resource outsourcing enables the people within a company to focus on their areas of specialization (HROA, 2008). For example, the outsourcing of the human resource services from the line managers to this specialized team reduced the time the line managers spend handling human resource issues at the stores. The store managers can have more time in running of the stores to improve operations.
The outsourcing of human resource services to this specialized team in Wal-Mart has also transformed the nature of the human resource in the organization. The human resource team of five experts has wide experience handling legal and human resource issues and therefore they can handle any of the complicated issues in human resource management. The availability of the team for 24 hours also makes the human resource department of Wal-Mart function better because the employees can report any grievances at any time of the day (Walmart, 2005).
The expertise of the human resource team can change the face of human resource in Wal-Mart to make the firm attain its objective of improving the welfare of its workers through infusion of new ideas by this specialized team and the utilization of their specialized skills. Outsourcing some of its services to this specialized tam has also helped the company to improve its image through professional handling of human resource services. The company has long had a bad image in the way it treats its workers and the outsourcing of the human resource services by the specialized team can improve its strategic policy of improving employee welfare.
However, despite the existence of human resource outsourcing business in Wal-Mart the company has not managed to address the challenges that face its human resource department .one of the major issues facing the company is the wage it pays its workers. Pay acts as an incentive in employee retention and development within an organization (HROA, 2008). This challenge has made Wal-Mart unable to attain its strategic objective of to retain many of its workers due to low pay.
Another issue that the company faces is the issues of promptness of the response towards employee grievances in the company. The team of five expert human resource managers cannot be able to handle promptly the many human resource issues of the big retail store. There is therefore a need by the company to consider increasing the volume of human resource responsibilities, it outsources to improve the nature of t its human resource department.