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At the same time, there are many cons to using alternative sources of labor.

Privatization, or outsourcing to for-profit and non-profit organizations, shifts public work to that of the private sector, which means that public employees carry the brunt of this change. As Dr. Campos notes in this week’s lecture, “Historical Foundations & Civil Service Reform, Part II,” “Public employees and public employee unions are the direct losers.”

1. Decentralization:

When organizations outsource labor, it inevitably causes a transfer of power; rather than a single entity being in charge of the ins and outs of an operation, additional players are involved. This can create several issues: problems with quality and lack of control. All of a sudden, external contractors have agency over an organization’s short and long-term goals. As per this week’s lecture, “Contracts have increasingly become larger in scale and scope,” though this notion can be beneficial at times, it can also get out of hand. When external contractors are in play, there is room for fraud, misconduct, or abuse, which will ultimately impact the quality of the jobs they are intended to carry out. Decentralization redistributes power, thus organizations may further lose control if the contractors are not met with clear expectations.

2. Job Loss:

Without a doubt, outsourcing may benefit an organization's finances but it is the employees who are hit the hardest. This fact, by far, is the most pressing to consider when organizations are split in their decision: to outsource or not to outsource? Whether it be a company seeking to outsource responsibilities in or outside of the United States, at the end of the day, public workers are at a loss. As it stands, in various industries within the United States, employment is down. Though the COVID-19 pandemic has undeniably played a part in this, other contributing factors, like outsourcing, need to be addressed so that certain U.S. communities can once again thrive.

3. Privatized Public Administration:

The term “privatized public administration” is a paradox; it also creates issues regarding lack of transparency and a shift in an organization’s work culture as it alludes to the politicization of an entity. When an organization elects to outsource, negative impacts on work culture can erupt should employees feel they are being replaced or are not cued in to the change in workflow. Organizations must be transparent in their decisions to outsource; when transparency is achieved, employees will not be confused about the outsourcing of particular tasks. From the start, communication must be a standard placed at the forefront of management's minds or the work environment will become one that is dishonest and unprofessional.

In order to prevent resistance and rejection of outsourcing alternative forms of labor, organizations should seek to consider the following: 1) the implementation of due process to minimize legal risks, 2) lessen the burden for displaced employees through partnerships with the private sector, and 3) provide employees with autonomy so they feel respected and part of the process. These are some ways in which organizations can mitigate the cons of outsourcing.

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There are many pros to using alternative sources of labor.

1. Cost savings - For decades the government has been trying to accomplish more with less. Sometimes the government simply does not have the resources or the manpower to accomplish some service effectively - using alternative sources of labor such as contracting out or utilizing volunteers can reduce overall costs rather the the government spending more money to acquire the right equipment or people. In the private sector, business will hire people in other countries because they know they can pay them less to do the same work.

2. Knowledge - Sometimes a government entity or private organization simply does not have the knowledge/experience to complete some task. Contracting or hiring out is an alternative source of labor that can ensure that a skilled and knowledgeable person is in charge of the task. For example, someone who has knowledge of a specific river might be hired to consult on building a bridge over it.

3. Expansion of services - Alternative sources of labor allow the government to expand the services they provide to help more people. If the government doesn't have the resources/time to implement a needed program they can partner with an organization in the community who already provides these services and give them money to expand their programs.

4. Effectiveness - Volunteers, partnerships, and privatization can help governments achieve their objectives effectively. A government might not have the physical or monetary resources to accomplish some needed task and using alternative sources of labor means the task can still be accomplished. For example, many counties contract out trash services to private companies because it is cheaper to pay them than to do it themselves. In my apartment complex they hired a trash service to pick up trash likely because people were creating a mess by the dumpster and weren't throwing away their stuff - in this case contracting out created some better public good (clean complex).

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The alternative source of labor among non-profit organizations is new graduates and those in the early years of their careers. The individuals are mainly selected because of the cost-effective result they bring to the organization. The persons accept lower salaries and wages compared to experienced professionals. Thus, the former save the company significant amounts of expenses.

The source of funds for governmental organizations is tax. The authorities allocate the collected money to various governmental departments. The advantage of the said resource is that it is partially available in unlimited amounts. The government has huge resources that they obtain from across the country. A nation can borrow large amounts of loans. However, the disadvantage of relying on the government is that the entity has many operations and projects competing for the same limited funds. An alternative source of labor for the government entails individuals hired on a temporary basis. These persons reduce the long-run expenses of the government since they can be disposed of after finishing the tasks assigned. However, the continuous replacement threatens the stability of the organization’s operations and culture.

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Alternative sources of labor within government and nonprofits explored throughout Weeks 1 and 2 include the use of volunteers, partnerships, and privatization. The benefit of using volunteers is not only that it spares the organization payroll expenses, but it can also assist the organization in gaining additional funds through the state and federal governments. Volunteers can also provide services while sparing the organization from spending resources on training (Kearney & Coggburn, 2016). Volunteers are long-term solutions in that they do not have contract restrictions on how long they will be staying with an organization and can assist in recruiting additional volunteers to support the organization. Volunteers typically have flexibility in their schedules to support the organization. Finally, having a large number of volunteers can assist in marketing the organization within the community.

Partnerships, particularly with other nonprofits, can also provide several benefits. Florida State University (FSU), for example, has a partnership with Oak Ridge National Laboratory, which offers exclusive collaboration opportunities to FSU students while supporting research done at the laboratory. Given budgetary challenges, these alternative labor sources are beneficial in supporting the organization’s mission without being a detriment financially.

Works Cited

Kearney, R. C., & Coggburn, J. D. (2015). Public Human Resource Management: Problems and prospects. SAGE.

Florida State University. (2021). Partnership with Oak Ridge National Laboratory through Oak Ridge Associated Universities. Retrieved from https://www.research.fsu.edu/research-fsu/partnerships/oak-ridge-national-laboratory/

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As discussed in Chapter 7 of the text, one of the largest challenges many government agencies and nonprofit organizations experience is the recruitment and retention of talent. Although most organizations may be able to keep up with workforce demands, there are many factors that determine demand/need for jobs in this sector including budgetary constraints, events in the community, economic conditions, and ongoing political initiatives. (Kearney & Coggburn, 2016) This cyclical change in need, along with competition from private entities, and increased necessity of services by the public, contribute to the use of alternative sources of labor and capital. By utilizing these alternative sources, organizations can quickly fill vacancies in fast paced areas when required and offer temporarily employment for skilled workers when deemed urgent and mission critical.

Kearney, R. C., & Coggburn, J. D. (2016). Public Human Resource Management: Problems and prospects. SAGE.

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Alternative sources of capital and labor provide public services without involving government employees. In the practice of employment of State institutions, there is a wider use of part-time and temporary employment and the hiring of employees under employment contracts. The incentive to use alternative sources of capital and labor is the possibility of reducing costs and increasing the flexibility of personnel management, allowing management to quickly reduce personnel costs without bureaucratic processes. In practice, this allows you to bypass traditional methods of hiring, training, career advancement, and performance evaluation.

One of the alternative mechanisms of human capital management is outsourcing all or part of its functions. The incentive for outsourcing the human capital management function is the opportunity to achieve an improvement in the quality of services and provide more targeted human resource management services. The conclusion of outsourcing contracts with larger firms providing services in a specific area allows government agencies to reduce the cost of providing services and save money on investing in new systems. It also opens up the opportunity to provide round-the-clock services and use new innovations or technologies that are not available within the organization.

Another incentive to use alternative sources of capital and labor is the possibility of achieving social justice.  The conclusion of contracts with enterprises belonging to minorities can lead to more equitable decision-making within the framework of the functions assigned to them. Fair decision-making has a positive impact on society and reduces bureaucratic barriers for minority groups.

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We know HRM relies on two primary strategies: 1) leverage alternative organizations and mechanisms to deliver public services, and 2) increase the flexibility of employment relationships for public employees through various nonstandard work arrangements (NSWAs). Some common incentives used to encourage the use of these alternative sources are enabling cities and counties to offer services within a given geographic area through state contracts. This will allow small municipalities to reduce capital expenses, personnel costs, and legal liability risks. Another incentive would be contracting with a private contractor to deliver public services, like solid waste disposal. It’s an easy way to reduce labor and construction costs on a larger scale. Cable TV and jitneys both offer public transit options that can be negotiated through franchise agreements. Cities encourage this alternative source because it reduces their costs, returns revenue, and benefits from a continual service that the public desires. Emergency medical services provided by private hospitals for public services are a typical subsidy that is reimbursed by public health systems. Subsidies also worked well in low-income communities, allowing residents to live in private apartments as an alternative to public housing programs. Low-income residents can also take advantage of school vouchers to supplement the cost of education for their children at desirable public institutions instead of public school monopolies. A sweet spot to leverage federal or state grants of appropriated funding is utilizing volunteers. We often see the benefits of volunteering through neighborhood crime watch incentives, teacher aides, and community nonprofit organizations. One last alternative services source worth mentioning is regulatory and tax incentives. These encourage the private sector to perform public services that otherwise cause public funding. Some examples are zoning means for roads, parking, and disposal granted to condominium associations. The association then provides security, waste disposal, and maintenance to common areas in partnership, where the local government would have typically performed these services.

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Several alternative sources for HR recruiting and staffing have been noted in addition to traditional methods of hiring and managing human capital. In the nonprofit sector, which is often attractive sounding yet tends to not be able to land and retain talent, third-party consultants may be brought in to assess the hiring process, aiming to optimize operations. Those advisors might also evaluate and update compensation models. Nonprofits also form associations to benefit from collective bargaining power. These larger group organizations structured as umbrella companies to other smaller companies provide HR directive and function, including payroll and benefits.

Kearney and Coggburn, Public Human Resource Management: Problems and Prospects, sixth edition, page 151 (https://fsu-flvc.primo.exlibrisgroup.com/permalink/01FALSC_FSU/1pc67ru/cdi_askewsholts_vlebooks_9781483393476)

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Q4: What kind of incentives are used to encourage the use of these alternative sources?

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Q4: What kind of incentives are used to encourage the use of these alternative sources?

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Q3: What are some of the pros and cons of using these alternative sources?

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Q3: What are some of the pros and cons of using these alternative sources?

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Q2: Why would agencies and organizations use these alternative sources?

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Q2: Why would agencies and organizations use these alternative sources?

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Q1: What are some examples of alternative labor and capital?

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Q1: What are some examples of alternative labor and capital?

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Alternative Labor and Capital Concept Map

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Alternative Labor and Capital Concept Map

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"Hiring professional staff members was seen as challenging, with half of respondents reporting some difficulty. Yet, most managers (and all respondents from larger organizations) reported they were satisfied with the quality of their staffs." This time that management saved by bringing in experienced workers was significant because they were not having to spend large amounts of time training those same employees from scratch. One of the pros is that brining in experienced is a more sound business practice rather than someone without experience. This is because you are able to focus more on business-centric tasks rather than 90% of your schedule training others.

An incentive to this type of alternative source is offering a balanced income with benefits to make the experienced worker feel as if this is not just a good opportunity for them, but one with which they can build a career.