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[ernie] The Electronic Recruiting News In Email_001214




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It is better
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John Sumser

Reality
is more
complex
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it seems.
John Gall


It's better to
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really well than
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If you can't
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scale back
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John Sumser

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Outerforce

(December 14, 2000) When you look at it, it's really rather odd that HR functions are so separate from the rest of the business. It's due, we think, to all of that damn paperwork. W2s, W4s, 1099s, work histories, filed resumes, compensation reports, raise authorizations, hiring requisitions. Yuck. Who wants to monkey with all of that stuff.

The disconnect, which saves miserable record keepers like us from a life in Purgatory, serves to insulate line managers from a daily sense of the cost of doing business. It's one of the fundamental ironies of any managers existence; with the scut work comes control. We have a deep and abiding respect for the valiant people who keep those records in order and just wish there was a way to make the data more real to the line. After all, investing in Human Capital involves spending money. We'd like line managers to feel responsible for every penny they spend.

In the worlds where free agents are the backbone of the business, this is less true. Many publishing firms, for example, use huge networks of specialized providers who need to be tracked, managed and paid on a routine basis. In the world of subcontract employees, the distinction between scut-work and survival is not as simple as it is in the refined world of HR.

We got turned on to Outerforce by near accident as we button up the 2001 Electronic Recruiting Index. The company builds specialized management environments for the publishing industry. It's not unusual for a web publisher to have large numbers of correspondents, editors, proofreaders and other talent working on a piecework basis. Outerforce integrates publishing workflow, performance appraisal and payment systems into a single tool that allows an editor to keep his eye on the bottom line while making the deadline.

The tool allows very conscious decision making about which human asset to use and whether or not continued investment is merited. We can easily imagine a Free Agent Relationship Management (FARM, that's good!) System that tickles the editor to do the things that keep a distributed team robust and committed. In project intense environments, where many contribute to a single output, the idea of coupling real cost control, payment systems and workflow management (down to the editing task!) is coming.

That's what life is like in some project based worlds.

The idea raises a whole slew of questions about the conventional wisdom surrounding retention. Most managers will politely grumble, "The ones who stay are never the ones we want to keep. Retention programs, with their typically paternal emphasis on guilt and loyalty appear to lose sight of the performance and commitment dimensions. After all, wouldn't you rather have, in at least some cases, a passionately committed player for a short while instead of a loyal player for a long while?

The best investment programs come a nickel at a time on a routine basis. So it is with effective Human Capital Investment initiatives. They are not a one shot deal, they are an ongoing process with clear, measurable objectives. We're jealous that the kind of control afforded publishers by Outerforce isn't available elsewhere as of yet. An integrated performance management system that combines workflow, FARMS and candidate acquisition is the starting point for the next generation of system.

- John Sumser

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