Outsourcing has become an increasingly popular solution for organisations looking to reduce costs and increase efficiency. However, outsourcing can also lead to unexpected consequences resulting from a misalignment of organisational values, especially when it comes to HR solutions. Employers often seek external HR providers to assist in the management their workforce. However, if the provider’s values do not align with the employer’s values, it can have disastrous consequences.
This was exemplified recently when an Australian HR services provider (EmploySure) was fined three million dollars for engaging in “misleading or deceptive” conduct with Google adverts that misrepresented the company as having government sponsorship or approval in 2019. The case highlights the importance of aligning organisational values when outsourcing work. The original fine was one million dollars; however on appeal by the ACCC, the Full Federal Court increased the fine to three million dollars.
The Downside of Misaligned Organisational Values
The consequences of misaligned values can be severe. Here are a few examples:
Loss of trust and reputation
If an outsourced HR provider’s values are not aligned with the employer’s values, it can result in a loss of trust and reputation. Employers rely on HR providers to manage their workforce and ensure compliance with labour laws. If an HR provider fails to do so, it can lead to legal and reputational consequences for the employer.
Decreased morale and employee engagement
When an outsourced HR provider’s values do not align with the employer’s values, it can lead to decreased morale and engagement among employees. If employees do not believe that the HR provider is acting in their best interests, they may become disengaged and demotivated.
Inconsistency in quality and service
Misaligned values can also lead to inconsistency in quality and service delivery. If an HR provider does not have the same standards and values as the employer, it can lead to inconsistent policies and procedures, which can affect the overall quality of the workforce.
The case of EmploySure’s misleading advertising
EmploySure’s case is an example of the risks of misaligned values. The company was fined three million dollars for misleading advertising, which falsely represented their business as a government agency and for unfair sales tactics; highlighting the importance of aligned values with an outsourced provider
The Benefits of Aligned Organisational Values
When an organisation’s values are clearly defined and business decisions and actions are aligned with those values, it can reap numerous benefits – for example:
Improved Reputation and Trust
When your business decisions align with your organisational values; you are more likely to gain the trust and respect of all stakeholders – e.g. employees, customers, suppliers and partners. Operating with integrity and transparency will earn your business a reputation for being reliable and trustworthy.
Higher Employee Engagement and Motivation
Highly engaged and motivated employees is the likely outcome when your business decisions clearly demonstrate an alignment with the organisational values. Employees who believe in their organisation’s values and feel their work is meaningful are more likely to be passionate about their jobs and committed to achieving the organisation’s goals.
Consistent Quality and Service Delivery
Employees who understand and embrace your business’ values are more likely to consistently deliver high-quality work that meets or exceeds expectations.
Enhanced Customer Satisfaction and Loyalty
Customers who believe in your business’ values and trust its products or services are more likely to remain loyal and even recommend the organisation to others.
How Akyra Ensures Alignment of Values in Outsourced HR Work
Akyra is an organisation that understands the importance of aligned values in outsourced work. Our approach to working with our clients for tailored human resource and people management solutions is based on our three core values: passion, integrity and the pursuit of excellence.
Passion: contagious energy and enthusiasm to make a lasting impact
Akyra’s team is passionate about their work and their clients. We bring contagious energy and enthusiasm to every project, big or small. Our passion for making a lasting impact is evident in the solutions we deliver to our clients.
For example, we worked with a company struggling with low employee engagement and high turnover. Our team developed a comprehensive employee engagement program, including training and development opportunities, recognition and rewards programs and transparent communication channels. The program led to a significant increase in employee engagement and a reduction in turnover, resulting in improved business outcomes for the client.
Integrity: doing the right thing for the right reason
Our team operates with integrity and always strives to do the right thing for the right reason. We believe that transparency, honesty and ethical behaviour are essential to building strong and lasting relationships with our clients.
For example, Akyra has turned down potential clients whose values did not align with their own. This may seem counterintuitive from a business perspective, but Akyra understands that aligning values is crucial to building a successful partnership.
Pursuit of Excellence: continually striving to exceed client expectations and set industry standards
Likewise, our team is committed to continually striving to exceed client expectations and set industry standards. We are always looking for ways to improve the human resource and people management solutions that are the best-fit for our clients; whether that is leveraging technology, seeking out new best practices or developing innovative approaches to challenging problems.
For example, Akyra developed the HR SnapShot, a done-for-you tool that takes the hassle out of measuring and improving employee engagement. This tool combines the best of automation and careful analysis of the survey findings by experienced HR professionals to prepare a report that identifies scalable and highly effective means by which employee engagement can be measured and improved for better business outcomes. The tool has helped clients proactively improve retention; identify human resource, people management and operational issues; and increase workforce productivity .
Akyra’s Key Takeaways
- Prioritise values alignment when outsourcing HR work: Don’t underestimate the impact of values alignment because it can make or break your company’s reputation and success.
- Consistent communication is key: Ensure your values are communicated clearly and frequently to your service provider to ensure alignment.
- Look for tangible examples of values in action: Ask for specific examples of how the service provider’s values have impacted their work and their clients.
- More than just words: Above all else, ensure your values are more than just words sitting on your website and in your employee handbook. Rather, your business should live and breathe its values. If it doesn’t, either your business or your values should be revisited.
NEED MORE INFORMATION?
Akyra can help your business to assist and support all your questions and concerns related to the organisational values. Please contact Akyra on 07 3204 8830 or book a free 30-minute consultation for an obligation-free conversation.
Disclaimer – Reliance on Content
The material distributed is general information only. The information supplied is not intended to be legal or other professional advice, nor should it be relied upon as such. You should seek legal or professional advice in relation to your specific situation.