Outsourcing business functions to third party firms has become a trend in Nigeria. The field that has taken the lion's share is Human Resource Management (HRM). It seems some firms don't want to manage this function themselves anymore. They prefer contracting it to third parties.

Although there are different agreements that could be reached. One is contracting an HR firm to help your firm source and recruit talents and the contract closes when the former has recruited the talent and they've resumed at your firm (as full staff of your firm).

Another one (which is the most trending and most damaging to employees' career IMO) is firm entering into agreement with outsourcing HR firm to supply them staff for an agreed period of time. These employees remain the staff of the outsourcing firm. The firm they are deployed to would pay the outsourcing firm which would, in turn, pay the employees but that's after they have deducted some percentage which could sometimes be as high as 20%.

This, to me, is a big and subtle act of slavery. Can you imagine how much the outsourcing HR firms are making every month on all people they deployed to firms?

Now, one critical question I would want to ask is: are the companies contracting these outsourcing HR firms satisfied with making workers suffer -- with low pay and without career direction or promotion potential -- to the benefit of the outsourcing firms?

Please what career directions are there for an employee who's employed by an outsourcing firm and deployed to, say a bank, and whose career in the bank can halt should the contract between the bank and outsourcing firm seize?

And what promotion potential or career progressions are there for people working for outsourcing firms?

At least, as real staff of a firm, you're sure of promotion and pay rise when you reach a career milestone in the firm. What is the fate of an employee working in the same firm but is a staff to an outsourcing firm?

Although, when we look at it critically, HR outsourcing firms are creating value to their clients (firms). They provide you with employees whom you don't need to disturb yourself providing employees' benefits for. They are just like robots. You're not obligated to promote them or plan for their pension. Their career development is not your problem, too. The only thing you owe them is their monthly salary which is always nothing close to what you normally should pay your own (full) staff.

What does all this translates to for the firm? It translates to lower cost; and that's the value the outsourcing HR firms provide them.

On the right note, any firm that doesn't care about the career and standard of living of her employees but only wants to make money and mindlessly reduce cost is not a good firm IMO.

So, those who are working in the system already (working for ousourcing firms) should please enlighten us.

Is there something we are missing in this HR outsourcing job thing?

Referral does it for me

Referral does it for me

FortifiedCity:
Referral does it for me

what do you mean by referral in this case, sir?

smithsammy:
what do you mean by referral in this case, sir?

When you get jobs or businesses by someone referring you to an employer

FortifiedCity:
When you get jobs or businesses by someone referring you to an employer

OK. But how can one best take advantage of this?

smithsammy:
OK. But how can one best take advantage of this?

Being exceptional in what you do

And what baffles me about this whole thing is that the labour ministry is fully aware that something like this is going on and nothing is being done to stop it.
It's really painful.

And if you really take a look at the job position that's being contracted to these outsourcing firms, You'd observe that they are even more demanding than that of the full time staffs.

@oga smithsammy, some hr firms collect as much as 50% of the salary meant for the contract staff! I don't think any collects less than 30%. it is the unfortunate norm in the labour market today in Nigeria. imagine a graduate earning N40,000 after hr consultant has collected his own share

The People in government are aware. They are all benefiting from the business.

Slavery in 2018

This is actually a national emergency and has concentrated wealth at the top!
- Banking,
- Oil & Gas,
- Telecoms,
and many other lucrative industries to work in have become manufacturing grounds for graduate poverty!

E.g. (Oil & Gas) approved salaries for drivers in Total E&P from France HQ is above 450k per month. But the so called HR companies managing the drivers don't pay them more than 80k monthly. This caused major strikes in 2013. Today companies like Shell, Schlumberger, Baker Hughes, etc suffer same agitations

This has been debated in the house of reps. But like people cursed by the gods, we seem uneager to address any issue deemed important (e.g. PIB is taking 8yrs to pass)... Yet useless bills like "not too young to run", are quickly passed and signed by Mr. President in weeks.

Not really...This thread broke it down. It's like a deal you are striking with someone. It becomes slavery when the deal is not fair.

http://www.mortalpoet.com/list-of-job-recruitment-agencies-in-lagos/

This is heartbreaking.After working tirelessly to earn a certificate only to be employed by `two’ firms and be paid a meager amount of money.I don’t understand how Nigeria works,it seems as if no ministry,body,force and even unions is doing anything like what the Bleep is labour union doing.Everyone is indeed a criminal.

While the Labour Ministry look the other way.

MEANING PLS

Workforce


Are you afraid to name them?

This is Nigeria!!!

It’s not slavery because you have a choice.

Outsourcing is a very good concept that’s been around for ages.

It is the mode I will be using. Only a few key proven staff will be directly employed.

FortifiedCity:
Being exceptional in what you do

This is the key.

A good employee will always have a job.

This shouldn't be happening in 21st century but as usual, a deaf hear will be turned to this.
Imagine someone working from morning till evening earning 25,000 while the hr company or whatsoever will pocket one third of ones salary.

We have no mercy for ourselves in this country self.

The directors of the companies and that of the HR coy are usually d same. Smart way to move money

.

its really appalling

It is and I'll explain.

Major organizations have in house HR team and it makes a lot of sense and saves cost a lot. It's overzealousness having to outsource. They'll charge for every service rendered and would always cause trouble in order to justify their pay. Some issues that can be trivial would be escalated just to earn a pay

I'm sure many people can relate with this

ednut1:
The directors of the companies and that of the HR coy are usually d same. Smart way to move money

This is so true.

I've had this experience and can't agree with you less

It's modern slavery,no need to sugar-coat it.

Be productive no matter the angle you're coming in from

Jim Ovia owns Zenith Bank and his wife owns Peopleplus while his daughter owns Zenith Insurance.

They employ graduates and pay 70k as contract staff. Peopleplus as the outsourcing firm deducts 30 which leaves the staff with 40k as salary.

Later on, Zenith Insurance absorbs the staff and keeps paying that 40K.

I hope you see the cycle?

It is one of our wicked acts in Nigeria, why don't u collect a percentage when get the job instead of deducting from their salaries every month,May God help Nigerian