Effective use of labor outsourcing services begins with clearly defining workforce requirements and assigning responsibilities between the organization and the service provider.
IFS has compiled 10 key questions to help organizations understand the process, from preparing project information and starting the service to monitoring quality and managing workforce levels in line with business needs.
Q: What information should an organization prepare before using labor outsourcing services?
A: The organization should prepare an overview of the project, including:
- Required positions and number of employees
- Work location
- Working arrangements and shift patterns
- Expected start date
- Required service period
- Reasons for increasing the workforce
The need for additional employees may result from production expansion, the opening of a new branch, or vacant positions that need to be filled.
For example, a factory requiring 50 additional employees should clearly specify the production line they will work on, the number of shifts involved, and when the employees must be ready to start.
Complete information allows the service provider to assess the size of the project and develop a recruitment plan that supports the organization’s business plan.
Q: What types of work and positions are covered by labor outsourcing services?
A: Labor outsourcing services can support a wide range of business functions. The positions provided should be selected according to the nature and operations of each organization.
For office environments, positions may include:
- Receptionists
- Call center agents
- Administrative employees
- Office support staff
Retail businesses may use sales staff and merchandise display staff, while factories and distribution centers may require production-line employees and warehouse staff.
Q: How should an organization define the scope of work to find employees who are suitable for each position?
A: The organization should clearly define the main responsibilities, required skills, working environment, and expected outcomes of each position.
A job title alone may not be sufficient because positions with the same title can involve different responsibilities in different organizations.
For example, a receptionist at one location may primarily answer telephone calls and welcome visitors. At a large corporate headquarters, the role may also involve operating a visitor registration system, coordinating with several departments, and communicating with international clients.
A clearly defined scope of work helps the service provider select employees who match the actual responsibilities and working environment. It also reduces the risk of recruiting candidates who meet general qualifications but are not suitable for the specific role.
Q: Can an organization begin by outsourcing only certain positions or locations?
A: Yes. An organization can begin with specific positions, departments, or locations without transferring all support functions to the service provider at the same time.
For example, a company may begin with receptionists and drivers at its head office. A factory may start with warehouse operations or a production line that regularly experiences staffing shortages.
This approach allows the organization to evaluate the suitability and performance of the service through actual operations before expanding the scope.
Q: What preparation should employees receive before starting work?
A: Before beginning work, employees should understand:
- Their responsibilities
- Working hours
- Operating procedures
- Site rules and regulations
- The people or departments they need to coordinate with
This preparation allows employees to begin working correctly and adapt to the organization more quickly.
For factories, warehouses, or controlled areas, additional requirements should be explained, including:
- Use of personal protective equipment
- Entry and exit procedures
- Authorized working areas
- Emergency reporting procedures
Sales employees should understand product information and customer service guidelines. Warehouse employees should be familiar with goods receiving, dispatch procedures, and safe material handling.
Q: What are the responsibilities of the organization and the labor outsourcing provider during the service period?
A: The client organization is responsible for defining job duties, working procedures, site regulations, and the standards that employees must follow.
The labor outsourcing provider is responsible for:
- Recruitment
- Employment administration
- Payroll
- Employee benefits
- Labor documentation
- Workforce management within the agreed scope
For example, a factory determines workstations, production procedures, and safety requirements. The service provider ensures that employees are prepared to work and coordinates solutions when workforce-related issues arise, such as absences, changes to work schedules, or the need for replacement personnel.
Q: How should an organization evaluate the quality of labor outsourcing services?
A: Service quality should not be assessed solely by whether the provider supplies the agreed number of employees.
The organization should also consider whether employees can perform their duties according to the required standards, responsibilities, and working conditions.
Performance indicators should be tailored to each position and may include:
- Punctuality
- Accuracy of work
- Compliance with rules and procedures
- Workforce continuity
- Communication and service quality
- Product knowledge
- Compliance with safety procedures
For example, receptionists may be evaluated on communication and service skills, sales employees on product knowledge, and warehouse employees on accuracy and adherence to safety procedures.
Q: How should an organization adjust workforce levels when workloads increase or decrease?
A: When workloads change, the organization should regularly communicate relevant information to the service provider, including:
- Workload trends
- Periods when workforce demand is expected to rise or fall
- Short-term and long-term plans that may affect staffing requirements
For example, a retail business may provide advance notice of promotional campaigns at selected branches. A factory may inform the provider about planned production increases on particular shifts or stages of the production process.
This allows workforce levels to be adjusted where needed without changing every position at the same time.
Clear and continuous communication helps the provider plan and prepare appropriately, reducing the risk of workforce shortages or excess staffing during critical periods.
Q: How does the provider’s employee care system affect the quality of work delivered to the client?
A: Outsourced employees work directly at the client’s premises. Proper management of wages, employee rights, benefits, safety, and channels for reporting concerns helps employees remain prepared and able to perform their duties continuously.
When employees understand their employment conditions, receive their statutory rights and benefits, and have access to support when problems arise, they are better able to focus on their responsibilities.
Organizations should therefore consider not only the provider’s recruitment capabilities but also its employee care and support systems. These systems contribute directly to workforce readiness and the consistent delivery of work according to the organization’s standards.
Q: How can IFS Group support an organization’s workforce requirements?
A: IFS Group has operated in Thailand for more than 40 years, employs over 30,000 people, and serves more than 2,000 corporate clients across a wide range of industries nationwide.
Its experience across multiple industries gives IFS a strong understanding of how workforce requirements vary between organizations, including differences in:
- Job positions
- Number of employees
- Working arrangements
- Workplace environments
IFS can therefore define the service scope and manage personnel in a way that aligns with the operating requirements of each organization.
