Astute HR, Columbus Stainless meet the challenge

Astute HR, a wholly owned subsidiary of the AST Group, was awarded the Columbus Stainless human resources outsourcing contract. This contract, worth more than R120 million over the next five years, is the first of its kind in the manufacturing industry, involving the entire human resources function of a large, hi-tech exporting concern.

Jo Mabhena, Human Resources Manager at Columbus Stainless, expressed his satisfaction with the way in which the contract is progressing. "The sheer size of our organisation presented a significant challenge to both Columbus Stainless and Astute HR. We have a permanent staff complement of 1 700 and around 1 500 contract workers. It was crucial to Columbus Stainless that this foray into the unknown be preceded by a thorough investigation."

The process was characterised by discussions and negotiations with all the stakeholders, to ensure that the system of checks and balances addressed the concerns of all parties.

"It was important to us that all the employees who would be affected by the change understood and accepted the value proposition. At the same time, we needed an outsourcing partner who understood our business, our culture and our concerns. Because this is the first outsourcing contract of its kind in SA, we also had to be sure that our outsourcing partner would stay the distance, and would share the learning process with us," says Mabhena. "As is the case with any business, the bottom line counts."

With a contract that demands such close interaction between client and service provider, managing relationships is of paramount importance. Mabhena continues: "A shared culture and a shared philosophy need to be established, and often this means that the individuals - and organisations - involved must undergo a shift in mind-set. Columbus Stainless is fortunate: we have always applied innovative HR practices, and this has led, over time, to a healthy working environment. Astute HR shares our commitment to our people."

Since inception of the contract, Astute HR has used its technology capability to implement SAP HR, upgraded site access control, and now utilises online recruitment facilities. The company`s strategy and goal deployment processes have been revamped and new learnerships introduced to its operations.

The contract has been running for 12 months and delivery is progressing well. "Service delivery is managed through detailed service level agreements and reviews at both executive and operational level. The potential benefits, especially the transfer of knowledge from other organisations and the sharing of new ideas by Astute HR - will be significant to our organisation," Mabhena concludes.