Case Studies
HR Outsourcing
Outsourcing Services As a Tool To Comply With Domestic Regulations And Manage Resources
Industry
Humanitarian OrganisationChallenge
- How to comply with domestic regulations while operating as an international governmental organisation
- How to manage local talents with complicated HR issues
Solution
- Contract arrangements based on Indonesian Labour Regulations
- Effective System-Based Process (HRIS & Axdif)
Overview
International Governmental Organisations (IGO) workers are considered as diplomatic staffs. Several IGO have set up offices in Indonesia. The employees of the organisations are treated slightly different as they are covered under different policies. The distinct policies applied are beyond our nation’s sovereignty. However, Indonesia implements some regulations on labour like other sovereign nations to protect its citizens. All workers working in Indonesia are compulsory to pay tax and BPJS (public healthcare service) according to the regulations of Central Government of Indonesia, while United Nations (UN) workers are actually exempted from paying taxes and BPJS. These 2 different policies may contradict with each other for payroll related process.
The works of IGO is covering UN’s interest which is Sustainable Development Goals. It means the IGO is covering certain areas that become its focus which is called mandates. The IGO which is studied in this paper is an IGO with mandates that focuses on the well-being of the children. While doing its work which is absolutely substantial, the organisation is also encountering various Human Resources issues, such as recruitment, leave management, payroll, etc. The IGO has invited a third party to deal and solve some of its issues as it has limited resources. In other words, when the IGO hires a local outsourcing company, the workers that it recruits will be managed according to the local government regulations.
A Solution To Comply To Domesctic Regulations
The national regulation on labour in Indonesia has changed through the times as it much depends on the legislative bodies. The transformation demands any outsourcing company to adapt it fast. As the agency hired by the IGO, it means Elabram has to ensure all operational activities (of the IGO) meet the standard and fully comply with the Indonesia Labor Regulations. It is to avoid unexpected and unwanted findings by the related government institution. The job description is not limited to the updated UMP or regional minimum wages, BPJS maximum wage base, local tax registration, and report, but also to arrange the contracts that fully comply with the domestic regulations. Furthermore, as the HR third party, Elabram provides advice to the IGO on any HR matters to avoid an industrial relations case that might set a negative precedent to the IGO.
A Talent Pool And Management
The IGO has a fundraising programme which is executed by the talents called Fundraiser. The needs of children’s funding are high, thus it causes the fundraisers to operate with a sales-based/target-driven nature, and it leads to a high turnover of the employees. This potentially causes a ‘headache’ to the IGO to constantly recruit talents within a short period of time. Therefore, the IGO selects Elabram to perform the outsourcing service on behalf of it. Delivering an outsourcing service means providing an end-to-end service to ensure the quality and performance of the talents. The service starts from recruiting the right talents, handling the payroll of the talents, until the termination of the contract.
Human Resources Information System (HRIS) is one of the tools to enable Elabram to manage high turnover contracting with ease. Once the data of the selected candidate is uploaded in the system, the contract is ready to be delivered for signing. The data history is also available for everyone’s reference, as well as the notification for those who are having upcoming end-contract for further action. This system supports the process of preparing contracts ahead of time. In addition to the contracting process, the payroll approval process is cloud-based which allows Elabram to ensure timely and promptly salary disbursement to each employee.
Another supporting tool is Axdif application developed by Elabram. It is an HRIS mobile-based app to manage the productivity of the employees. One of its features allows the employee to record leaves via their smartphone. The utilisation of Axdif has allowed making sure every employee is getting what is entitled in terms of leaves such as annual, marriage, maternity, paternity, and hajj. So, whenever the organisation requires the report of used/remaining leaves for analysis purpose, Elabram can provide it just in time almost immediately.
In conclusion, outsourcing service provided by Elabram, as aforementioned, is an end-to-end service to help clients in solving their HR issues. It is supported by the information systems that can accommodate the client’s needs to operate the business/activity. Elabram’s core task is to maintain talents who execute the business process (fundraising) of the client so the business activity of the client may run in line with the mandates.