Mehrzad Ferdows’ Speech on HR Outsourcing in Times of Crisis

Mehrzad Manuel Ferdows
4 min readMay 15, 2021

Mehrzad Manuel Ferdows, a leading entrepreneur, advisor, investor and industrial Engineering graduate from University of Southern California has given speech at a conference held in Dubai on the importance of outsourcing of human resources in times of crisis. Mehrzad Ferdows stated that outsourcing can be to the advantage of both large and small businesses. With its aid, businesses can get to work with experts who will provide fresh perspectives and noble ideas to get back on their feet. A businesses that is not ready for such disruption will be seriously affected in times of crisis. Outsourcing will however help businesses cope with whatever impact the crisis would have on the business functions.

The Importance of HR Outsourcing

Mehrzad Ferdows stated that the growing focus on employee well-being and company culture, small and large businesses are finding advantages in outsourcing HR. Keeping up with HR trends and changing laws is one of the obvious advantages of outsourcing HR. Outsourcing, a hassle-free way to update your employee handbook tailored to your business identity needs, can save a great deal of time. In addition, outsourcing can improve employee relations and streaming hiring orientation. Training and professional development is another key factor that gives significance to HR outsourcing. Mehrzad Manuel Ferdows added that outsourcing can handle administration for time-consuming tasks. Moreover, an expert eye is put on a company’s HR policies through outsourcing. In a nutshell, outsourcing frees up time which is the most valuable possession for all organizations.

Disadvantages of Outsourcing

Mehrzad Ferdows pointed out that outsourcing human resources functions can save time and money. It can, however, cause employees to feel disconnected with the company. It is not the case with all HR functions, but organizations need to weigh the disadvantages when making decisions about which functions to outsource. Loss of human factor or face-to-face interaction is the biggest disadvantage of outsourcing because employees prefer a familiar face when they have HR issues. Talking face-to-face gives employees more confidence and trust within an organization. Mehrzad Manuel Ferdows stated further that although cutting costs is an advantage of outsourcing functions, it can contribute to cost climbing at times particularly when the processes of proposal acceptance takes too long. More importantly, outsourcing HR can result in changes in the culture of an organization particularly outsourcing more personal functions like employee training, new employee orientation or retirement processing can affect the organization’s vision drastically.

Outsourcing in Times of Crisis

Mehrzad Ferdows stated that periods of crisis, in many ways, serve to highlight the strengths and weaknesses of an organization. The value of outsourcing HR administrative tasks can notably be demonstrated in times of crisis when unforeseen challenges are brought to the management of businesses. Leaders cannot have the time to follow up with clients, deploy support services, and meet demands for infrastructure, which could keep the organizations away from ensuring smooth and efficient business operations. This can be measured in terms of efficiency to ensure continuity of service and in the capacity to provide real support to the crisis management itself. It is clearly noticed that in case of crisis, setting up protective measures for the employees is under stress by human resource services that may not only include organizing teleworking together with other services but envisaging the available legal and regulatory solutions is of high significance. Mehrzad Ferdows reiterated that when non-strategic HR tasks are outsourced, companies can fully appreciate the benefits of being relieved of them and to concentrate on crisis management specifically in time of salary statement preparations with non-adjourned deadlines.

Benefits of Outsourcing in Times of Crisis

Mehrzad Ferdows emphasized the significance of outsourcing HR in times of crisis and stated that along some disadvantages that outsourcing HR may bring about, it can be looked upon as a saving factor for the company in times of crisis. Some functions are worth being outsourced to a third-party to focus on core business as few non-core assignments can hinder an employee from doing more essential tasks. Outsourcing takes the load off a company’s shoulders, therefore, leaders can stay focused on business development and offering more high-value services and tasks that will truly drive the business when crisis hits. The first advantage to outsourcing HR functions is that it will help shortening the recruitment process as well as simplifying the pay process. With outsourcing there will be no need to invest in infrastructure, recruiting and maintaining the department and organizations can remain focused on business strategies. Another benefit could be that it will help easing to expand product model. It is beneficial to outsource HR functions in times of crisis since organizational outsourced HR can easily get access to the talent pool in times of crisis.

Mehrzad Ferdows concluded his statement about the importance of outsourcing HR in times of crisis by pointing out the most compelling benefit of it which results in a more trusted information regarding regional payroll and HR trends along with anticipated decisions. Similarly, when a global crisis happens, having an outsourcing partner is critical to provide the organizations with available vital information. It will undeniably enable a business to act instantly, and put it in a rapid and confident adaptive position. Outsourcing makes sure your business is kept up to date of anticipated events and challenges while helping you to understand them.

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