HR outsourcer Convergys is on a crusade to upgrade clients’ employee
relations.
The Cincinnati-based company on Thursday, November 8, announced a “a new
relationship management approach” designed to give clients a strategic leg up.
Convergys said its new method applies consulting services, analytic tools and
technology to generate more value from the interactions clients have with
customers and employees.
Naomi Bloom, managing partner at Bloom & Wallace, a consulting firm in
Fort Myers, Florida, says the announcement shows that Convergys is pursuing the
“holy grail” in human resources outsourcing—seeking to provide employees with an
Amazon.com-like experience that reduces costs and errors, enhances service
quality and improves business outcomes.
“It’s no surprise that Convergys is doing this,” Bloom says. “Everyone is
doing this who wants a fighting chance of being successful in HRO.”
Human resources outsourcing—in other words, farming out a variety of
employee-related tasks such as benefits enrollment, payroll and recruiting—has
been a growing market as organizations try to lower costs and focus on core
competencies. HRO vendors have struggled at times to make the often-complicated deals
profitable.
Convergys reported in late October that its employee care unit suffered an
operating loss of $8.3 million for the three months ended September 30. On the
other hand, the employee care unit saw revenue jump 24 percent year-over-year,
to $63.2 million.
Despite the fast growth in HR services, Convergys’ biggest business is its
“customer care” segment, which brought in $462.9 million during the third
quarter.
The recent “relationship management” announcement was directed at both
Convergys’ customer care and HRO clients.
“Our decades of leadership in both customer and employee care outsourcing,
innovative software development, and the application of analytics for continuous
improvement enable us to drive greater efficiencies and effectiveness in the
customer and employee service experience for large organizations around the
world,” Convergys president and CEO Dave Dougherty said in a statement.
Other HR outsourcers are offering software or services to improve the value
they can provide to clients. ADP, for example, recently said its national
account services unit is offering “sales incentive compensation management”
software through a partnership with application maker Centive.
—Ed
Frauenheim