In-Sourcing and Budget Cuts: The Implication for Human Capital Management

The Obama Administration has made a continued effort to in-source work performed for the Federal Government. The thought behind this is that government contractors are more expensive than federal employees. In an effort to increase efficiency, the Obama administration has suggested that agencies in the Federal Government in-source some of the work that has historically been done by contractors. With the start of in-sourcing, there grows a demand for greater workforce management. Agencies need to pay closer attention to the efficiencies within their workforce and make sure the job is done quickly and properly.

With more employees on payroll, and less work done through contractors, managers in the FedGov need to make sure that employees are growing, learning, communicating and most importantly, keeping costs down. There are several new technologies that will see a rise in sales from all of this in-sourcing:

• All communications type platforms, that allow employees to communicate internally, share documents, track versions, etc.

• Mentor type software that help grow employees.

• Time and attendance software that will make sure employees are putting in the time and effort that is expected of them.

• Rewards and recognition applications

• Recruiting software, and the like.

The Office of Personnel Management states on their website, “We see our labor-management culture as one characterized by mutual respect and trust, joint problem-solving, and a willingness to share information and confront problems openly and honestly. Within our labor-management forum framework, we will work together to develop better and more effective ways to meet the goals of this agency and to seek solutions to workplace issues. This will lead to fewer employee complaints of any nature and more focus on serving our customers.”