| Outsourcing human resources: Personnel Today | | | | Of course, it has not all been plain sailing. The BBC |
| interviews Wayne Story, managing director, | | | | contract caused a great deal of negative publicity, |
| Capita HR Solutions | | | | with trade union protests against moving HR jobs |
| With 2008 set to be a big year for the | | | | from England and Wales to Northern Ireland. |
| profession, outsourcing will be high on every | | | | "We took 250 employees from the BBC and |
| human resources director's list of things to do, | | | | centralised them to Belfast, but we left a local |
| according to Capita's managing director Wayne | | | | presence in the regions, with all client-facing jobs |
| Story. | | | | still there," Story said. "Everyone had the same |
| Like global warming, falling house prices and | | | | opportunities and a number have left Capita and |
| blogging, HR outsourcing is no longer the next big | | | | returned to the BBC." |
| thing - it is part of everyday business life. | | | | It was claimed earlier this year that none of the |
| Provider Capita HR Solutions laid much of the | | | | staff Capita took from the BBC were still working |
| hype, speculation and counter-arguments over the | | | | on the contract in Belfast. "That's not true," said |
| take-off of third-party people management to | | | | Story. "Some people we transferred from London |
| rest in 2007 with a record set of annual results, | | | | are still on that contract. But many people joined |
| bolstered by deals with the BBC, Fujitsu, and | | | | the BBC in HR positions to get into jobs outside |
| Dixons' parent company DSG International. | | | | HR, and have returned to the BBC." |
| Culture of success | | | | Story stopped short of hailing the controversial |
| The man behind it all, the firm's managing director | | | | contract as a success, however. "It is improving |
| Wayne Story, is not surprised. In fact, he believes | | | | over time," he said. "It is a big change for both |
| this year's results will be even better. "There is a | | | | organisations. When you take on an outsourcing |
| culture of success at Capita," he said. "2008 will be | | | | contract, it takes a long time to bed down." |
| bigger than 2007 for the HR businesses. HR | | | | Nonetheless, Story is delighted to be heading up |
| outsourcing is on every HR director's list of things | | | | Capita's HR outsourcing business at this time. His |
| to do. It has to be driven by the business case | | | | career is firmly rooted in the banking industry, |
| though - the right partner at the right time, for | | | | although it has a strong people management |
| the right reasons." | | | | thread running through it. "I left school at 16 and |
| All the companies in the FTSE 250 are looking to | | | | took a job as a cashier in the local branch of |
| get these key ingredients in place, according to | | | | TSB," he said. "I did not have a career in mind, |
| Story. But it is not only the private sector that is | | | | but my sister worked in the bank and an |
| attracted to the proposition, he said. | | | | opportunity came up and it led into a career." |
| In 2007, Capita was named preferred bidder for | | | | Changing times |
| contracts at three government departments. | | | | In his 16 years at TSB, Story moved up the |
| This outsourcing wave, now a multi-billion pound | | | | ranks and eventually became manager. In 1986, |
| industry worldwide, is driven by a desire to | | | | he moved to London as a relief manager, and 18 |
| minimise costs, allow the in-house HR team to | | | | months later, he was sales and management |
| concentrate on proactive rather than reactive | | | | trainer at the bank's training college. |
| policy, and - critically - better measure outcomes, | | | | "I became a people manager at the time when |
| Story believes. | | | | banks were changing, and TSB was changing its |
| "People want expertise and consistency," he said. | | | | staff into proactive retail staff rather than |
| "All outsourcing contracts are measured. There is | | | | reactive cashiers," he said. |
| a degree of transparency with service levels and | | | | Story then followed a more HR-focused career |
| financial rewards and penalties. It is much more | | | | path, which saw him training ex-NHS dentists in a |
| difficult to measure performance internally and put | | | | new way of working at private healthcare firm |
| in penalties." | | | | Axa PPP, and spending substantial periods in Hong |
| Story believes Capita is in a prime position to take | | | | Kong and Thailand as a consultant. Finally, a stint |
| advantage of this growing market because of the | | | | at Blue Arrow recruitment led to a contract |
| culture it has created among its staff. "We treat | | | | supplying staff to Capita, eventually leading to his |
| people as entrepreneurs," the former | | | | current job in 2005. |
| management trainer said. "We value their | | | | "I reflect on all these periods all the time," he said. |
| contribution, and that is a big driver for behaviour. | | | | "Every organisation is different and it all helps with |
| We are focused on performance and enthusiasm | | | | the current challenges at Capita. The more you |
| - the culture is very good and we manage the | | | | understand difference, the easier you can get the |
| business to drive that culture." | | | | best out of people and manage change. |
| Negative publicity | | | | |