To Insource or Outsource? That is the question.
It seems that one cannot pick-up a newspaper, watch the TV news
or even go the coffee shop without being exposed to the issue of privatization
and/or subcontracting for jobs that have been historically part of the public
sector. Since our course deals with site-based business and operational
functions within schools, please answer the following question from that
vantage point. How should decisions be reached regarding use of
contracted versus system-supplied operations/maintenance services?
To Insource or Outsource Blog-Jessie Miller
ReplyDeleteI have completed a vast amount of research on how schools should make decisions regarding use of contracted versus system-supplied maintenance services. I also interviewed several people with different administrative job titles and have come to the conclusion that there are numerous details to consider when insourcing or outsourcing maintenance services. As I stated in the voice thread, schools must have a combination or local services and contracted services in order to be the most efficient when dealing with the budget.
When considering insourcing and outsourcing, I wanted to get a viewpoint from a business manager outside of the school district. I asked a bank manager what his bank does as far and maintenance services and he said that they handle any issue on a case by case basis. One would need to look at the financial ramifications caused by such a decision as well as the perception in the community. Union and labor policies would have to be followed, that is, if there was one in place. With schools in financial crisis, the operation issues that arise would have to be looked at as a means of “what is the best way to save money.” Ultimately, the school board has to be well informed to make the final decision. They also need to be united behind the decision because they will be the ones who experience pressure from employees, unions, and some community members.
My superintendent had the same viewpoint when I interviewed him. He said that in order decide whether or not to use insource or outsource maintenance services, you must consider two things, cost and political capital. Cost is the first thing to consider. Schools should start with a cost/benefit analysis to determine how much money would be saved by privatizing an operation. With budget constraints, a district must decide which service or operation is going to be cheaper. In most cases, the contracted company is cheaper because schools are paying that group significantly less. Schools usually do not pay for benefits or pay into the retirement system for a privatized maintenance service. Now if you are a school employee, then the schools would have to pay more, provide insurance, and pay in to the retirement system.
I appreciate how you have taken the time to ask professionals for their opinions for many of the assignments within this course.
DeleteThe second thing school districts need to consider is the political capital that could be lost. In most districts, the maintenance employees are residents of the school district. They are voters and taxpayers for the district. When you outsource, in most cases, those contractors are not a part of that district. So then schools begin to lay their own citizens off to bring in outsiders. There is a huge capital loss for your community when doing this.
ReplyDeleteDistricts also must take into consideration the expertise of their personal. If operations can be done by the school maintenance staff, it may save the district money, instead of contracting the service out. However, some operations need to be contracted out because schools are either not licensed or there are particular inspections that need to be passed. At our school, our maintenance supervisor has the trust of his administration and school board to make those decisions. The supervisor really has a good handle on whether or not operations can be handled locally or need to be contracted out.
If the decision is made to outsource, the district would need to put together a request for bid document and then release it for competitive bidding. Once the bids are in, a district would need to go through them and figure out who is offering the best service for the best price. This may or may not be the lowest bidder. Then contractor should be required to offer you current employees the chance to apply for their current jobs.
The school principal really does not play a major part when insourcing and outsourcing maintenance services. Principals can play a part in the decision process by offering input on particular operations. If an issue happens that is in their building, the principal may research and prepare a cost and benefit analysis draft to the school board. The principal provide the school board of the advantages and disadvantages when dealing with an operation. The ultimate decision, however, relies on the decision of the school board.
As you can see there are many things to consider when deciding to outsource or insource. The thing that all schools must look at is the cost and quality of a particular service. Just because it is the cheapest doesn’t mean it is the best service for the school. Districts must be sure not to violate and union or labor laws also. After looking at all of the information, I believe this is why schools should have a combination between local maintenance programs and contracted maintenance programs.
Outsourcing is a word that has the ability to create a very emotionally conversation due to its effect on employees and employee morale. Unfortunately, a lot of businesses, including school districts, have had to outsource work versus insourcing to be able to remain in business.
ReplyDeleteAfter researching why school districts outsource some of the items that have traditionally been a part of the school’s fabric, food service, maintenance, and payroll, it comes down to money. As a future school leader it is imperative that I understand how to get the best for my school at the best price. I will have to understand the financial impact of both insourcing versus outsourcing the food and maintenance services. I like what I read in a 2011 article in the Detroit News regarding Detroit Public Schools, “At the end of the day, we have to ask ourselves, ‘What is our core mission?’ Is our core mission cleaning schools? We need clean and well-kept facilities. However, our core mission is educating students.” Of course, the decision should be made in conjunction with the school board. I would also have to work with the union if one existed within the school I work for.
When schools employ maintenance staff and food service staff there are a lot of other expenses that come with their employment. On site staff will require health and disability insurance, holiday pay, sick pay, pay increases, and additional taxes to be matched by the employer. An additional concern to consider is that even if these services are not outsourced, outsourcing is still required for situations that arise and require licensed or expertise people to handle. For example, heating and cooling, health and safety issues within the building, etc. The schools also have to purchase all of the supplies that go along with maintenance such as garbage bags, mops, cleaning solutions, and so on. When food services are handled within the district there are costs beyond the employee such as electricity, food, and utensils; just to name a few. Of course these all add up and affect the schools budget.
As a school leader our priority is educated students in a clean and safe environment and in order for this to happen the leader must make financial decisions based on effectiveness and cost. Unfortunately, with today’s financial crisis enhanced by the recent sequestration, outsourcing will be a way that school district’s save hundreds of thousands, if not, millions of dollars. Today’s leaders will need to do their research in order to pick companies that are reputable and reliable.
It is a very difficult and emotional issue. Support staff being a lot to the table and often positively impact student performance. Your comments are thoughtful for a tough issue.
DeleteAny decision to change from contracted to private/system-supplied operations and maintenance needs to be made only when something about the current system is not working. If the system currently in place is cost effective and provides adequate service, there is no reason to incur the financial and political cost of researching a new system. If a district with a high functioning in-house maintenance department that keeps everything running smoothly, the mere act of researching privatization of services can lead to an unnecessary loss of morale.
ReplyDeleteThe first step, therefore, in deciding if a change is necessary is to measure the efficiency of the current system. It is unwise to change a system that has not been properly measured. It will be difficult to determine if any changes made were for the better without baseline data, and measuring the current system will also help to determine if a change is even necessary.
If it is determined that a change is necessary because of inefficiency, research can be done to determine if full privatization, a blend of privatization and in-house maintenance, or consolidation of services through an intermediate school district would increase efficiency. Asking administrators from similar districts who have made similar changes about their experiences can give a good indication of expected vs. actual savings and level of service provided. Long-term cost needs to be estimated in addition to short-term savings. Less scrupulous private contractors will provide good service for the first few years, only to slowly increase rates.
Even if the decision to privatize seems to make sense in the long and short term economically, there is also the issue of the political cost. Privatization is a sure-fire way to start a controversy in a small town, a large city, or anything in between. For a district that hopes to pass a millage, this political cost may outweigh any financial gains.
I like your approach of, "its not broken don't fix it" and also the realization that the only thing wrong might be the cost. This is the last road anyone wants to venture down. The political piece aside - these are often the breadwinners of families and residents of the district.
DeleteManagerial decisions that are made from a site-based management level must be executed with caution, supporting data and information relative to trends. As noted in our textbook, school boards tend to reduce outlays for maintenance programs when a budget squeeze is evident. Such action can be detrimental. It may seem like a good idea to cut maintenance services or to use contracted services, but an independent cost-stream analysis might serve as a tool or as a guide in helping school business officials make the right decision for all concerned.
ReplyDeleteThe cost-stream analysis will cover pertinent items that are associated with the overall operations or the nuts and bolts of all building maintenance operations. There must be a concerted effort on the part of the decision makers to review the functions of providing for safety; the serviceability of current facilities; how energy conservation might be enhanced through research and change; what the general economy dictates that it might cost to repair, close or re-open a building; and the impact of program changes of contracted staff reassignments.
As building officials look at the big picture, public relations must also be taken into account. The physical appearance of school properties never should go undone. Even in the midst of an economic downturn, attention should be given to cleanliness and exterior maintenance. All facilities should reflect an image of community pride and usability. Just a plan of action to ensure that the grounds are well-maintained sends a message of a school’s desire for stakeholders’ satisfaction.
Decision should be reached regarding the use of contracted or outsourced services when future maintenance costs can no longer be borne by the existing budgetary fund. Again, with examination and consensus, school board officials will have to weigh all of the possible options and recognize that student achievement, along with a strong maintenance and operations program, must be their focus.
It is here that I believe that a local system maintenance program has its merits. In difficult times, the site-based school must make sure they have the most skill and most qualified workers. These works must have specialized skills that can cover a variety of areas. This will avoid contracting services from outside. Doing the preventative maintenance program and maintaining a check-off list of routine inspections, etc., could cut budgetary costs and justify keeping employees who are already supporters and advocates for the local school community.
A few years ago, our district took the lead of providing a luncheon for our building maintenance workers. This was intended to show appreciation for a job well done in refurbishing our school buildings via painting, repairing, cleaning, waxing and also through the reduction of employee labor concerns. I experienced, first hand, the commitment, support and buy-in that were exhibited by those employees to become an integral part of their school successes.
Finally, making the maintenance personnel feel a part of the team by inviting them to staff meetings, doing periodic walk through with them and recognizing them for a job well done will challenge them to do more. The school district official must be strategic and subscribe to the notion of shared leadership. The maintenance personnel must be seen as leaders with a vital role to play in education. Incentives will work must of the time!
You understand and frame the issue very well. The lunch is a wonderful idea.
DeleteIt may come down to a school budget whether to in-source or outsource school services, it many times is a dollar decision. When deciding whether to in source or outsource I think a combination of the two is best. Looking at the pros and cons, possible hidden and additional costs have to be considered. Employee benefits, which are a rising cost lean toward outsourcing. If an outside company is used for maintenance or food service it may benefit a school if some else carries the costs associated with these employees. Consideration needs to be made regarding equipment. Outsourcing does not require an investment to purchase equipment. In-sourcing allows for selecting equipment that best compliments school programs. When the decision to outsource is made, it is a given that the mission and vision of the school is not a shared priority. There is still a sense of accountability, but not much sense of community.
ReplyDeleteOnce the decision is made whether to in-source or outsource services it is important to include school stakeholders in the process. It is important that stakeholders involved in the search process for outsourcing have no ties to the companies that are bidding for the services. After pros and cons are researched and considered, then the decision should be made to in-source or outsource school services. This is a process that is time and labor intensive, there should be valid documentation to demonstrate why the decision was made.
I bring a slightly different perspective to the issue of in-sourcing/outsourcing than some of the above comments by my classmates. My perspective is shaped by my experience in a charter school where maintenance services have been outsourced. The pros of outsourcing are the potential for cost savings including legacy costs. There is also the potential for greater accountability through the use of a contract with clear performance measures. Outsourcing also eliminates the need for maintaining specialized skills that may go underutilized. You hire when you need it.
ReplyDeleteIn my experience, with the positives there are some negatives. First, cost savings may result in lower quality. The low bid contractor may be only able to hire lower quality employees or pay at a level that results in high employee turnover. Our school experienced a situation that a custodian position went unfilled for a significant period of time because the contractor wasn't able to find a qualified candidate for what they were willing to pay. Thus, some of the cost savings resulted in lower quality service being provided.
A second benefit of not having to have underutilized staff with special skills can also have a down side. If there is a major issue requiring another contractor, then there can often be a time lag, or if immediate attention is needed, then there is an extra cost.
So while I am probably more pro outsourcing than in-sourcing, I understand that it is not a magic solution. A district that is considering making a switch to outsourcing must be thoughtful in considering the potential benefits and costs. It is also important to be humane in implementing the process. While student achievement as the mission should be paramount, a good employer is concerned about all its employees. A transition plan that facilitates the hiring of school custodial employees is one step a district can take.
Many school districts have gone down the path of outsourcing certain services so it would be prudent to examine and learn from their experience. While being cognizant of the political ramifications, a thoughtful and effectively communicated approach to outsourcing is possible if it can be shown to support the mission of educating children.
Any decision being made regarding use of contracted services versus system supplied operations or maintenance services should be made through a researched, measurable, and repeatable process. This will ensure that the final decision being made is one that is well vetted, agreed upon, and most likely to be highly successful. An administrator must keep in mind that this decision is not one just of dollars and cents, but that these small decision make up a larger budget and send a statement to stakeholders about the priorities of the school and their effectiveness at fiscal sustainability and good stewardship of public funds. These should be the primary concerns. With this in mind the school leader in a site-based budgeting model must consider the use of research and research based methods in any decision of services. Researching not only the cost of a particular services but its effectiveness in a similar context is critical. Using a method that has been used by others and is researched and proven should also be important. A leader should not simply be vetting services in the Yellow Pages of on Google. They should be making contacts through a methodic approach to ensure that bids are being accepted and offers extended in a formal way that leads to the foundation of a professional and sustainable relationship. This step is critical and should not be sacrificed for cost, the cost of this step will pay for itself through a good service that is cost effective and sustainable over time. Next a leader must be able to measure the effectiveness of the service. If the effectiveness of a service is not going to be measured, a leader would not be doing their job of being a good steward of public money. It is critical to have these measures in place before you even begin the process of looking for a service provider. A leader should have a clear goal and vision in mind for the service they need provided and how they need it to be done. Without this list, there is not target. I have heard it said many times in my professional career in reference to fundraising, “If your goal is nothing, you will achieve it.” The same is true here, if you have no idea what you are looking to receive from a service provider, than you will most likely not receive something worthwhile. Lastly, a leader should choose a process for vetting vendors that is repeatable. Any time a new service or need becomes evident, there should be a process in place for a finding someone to meet that need or provide that service. The wheel does not need to be reinvented each time. By choosing a process that is repeatable, a leader is likely to gain trust and support for the decisions being made each time, because people will know this is how other services were chosen and those services are working fine. All of the above mentioned should be done each time a service is needed and should be done so keeping in mind the safety of the students, the financial sustainability of the school or greater school system, and ultimately being a good steward of public funds.
ReplyDeleteAs a building administrator or principal I would look at it being the most cost effective way to go about it. If you contract out the maintenance and custodial services you will no doubt save money in your general fund. The way many districts are moving towards privatized services is by allowing the current employees a chance to get a job working for the private firm. I have heard successes and failures pertaining to this subject, but I do believe schools can try to hold on to individuals because they believe ethically it is the right thing to do. However, we are here for the students and creating a safe environment for those students. Having a less expensive option that will provide more workers is a very cost effective way to solve the issue. Something any administrator would want to see is an extensive report of how the district would save. If the district is considering contractors, getting different bids on service pricing would be a must. With a detailed report, I would be able to confidently approach the school board for approval on such a matter. The more informed the decision makers are the better off. With a site based approach, the building administrator needs commitment by all parts of the staff. Approaching the staff allows for the administrator to adjust their ideas to make it a more collaborative decision. Including many stakeholders in a decision also shows the interest in "what's best for students?" Financial decisions should be made by the administration, but input should be accepted as well. I would also research other similar sized schools to gain a good perspective on high achieving methods of in/outsourcing.
ReplyDeleteWIth all the ideas of how to approach a decision of this magnitude, I would need to base my decision on the impact of student achievement, regardless the difficulty of the task ahead of me.
In our modern day United States privatization and subcontracting have become the norm for many businesses. There are many things to consider when approaching the issue and each must be well thought out and handled delicately with all workers involved. One of the first things to look at is the cost effectiveness of privatizing or subcontracting the maintenance services. Many of the issues that involve public school districts today revolve around money, including this one. When a school district hires and employs the maintenance staff they are usually paying more than they would pay a company to contract the services. Schools would often pay more in wages and offer options for certain benefits, or hiring substitutes when maintenance staff call in sick, or need a day off. This would ultimately cost the school more money when all districts are in efforts to keep costs down wherever they can.
ReplyDeleteAnother factor in the decision to privatize maintenance services would be looking at what options a school had available. Districts would need to take a hard look at the companies that are offering these services in the area the district is located. It would be vital to look at the company’s structure, stability, past record, organizational policies, among others. It is important to have structured schedule and regularity in the company’s workers. The district that I teach in currently contracts out our maintenance services and at times turnover has been an issue. During the last school year our school had turnover in a night position multiple times. This caused confusion in duties, irregular cleaning of certain areas, and concern for our daytime worker who was overloaded from the night turnover. The stability of the positions are important for a school to function the way it needs to and for priorities to be met. As a physical education teacher I have great appreciation for our maintenance staff for the work they do. Having a stable position of our daytime maintenance worker has made my job easier in my first three years in education.
As educators, we know the ultimate priority is the safety and well-being of students. One advantage that system-supplied operations would have is the extensive interview process they could go through when deciding who the best candidates are for the position. I am currently teaching in a first and second grade building and it is very important that we have a daytime maintenance worker who is good with the students, and is someone they trust and enjoy being around. Schools must consider this when they outsource the maintenance staff. They must research the process of the company, and to what extents the company will go to meet the needs of each school.
One final thing to consider is the resistance from employees if change is being considered. As Lunenburg and Ornstein (2012) discussed, there are strategies that are suggested when dealing with resistance to change. These strategies include participation, communication, support, rewards, planning, and coercion. In Lewin’s Force Field Analysis (Lunenburg & Ornstein, 2012) we understand there are driving factors acting to change the current condition, and factors acting to inhibit the change. As these strategies may help we have to consider that every situation will be its own, and all are unique. As we approach these issues as administrators we must be proactive in all considerations and actions that we take with what is best for the school and always staying one step ahead.
Dufour, Rick. (2004). What Is a "Professional Learning Community"? Educational
Leadership, 61:8, pp. 6-11.
Lunenburg, F.C., & Ornstein, A.C. (2012). Educational administration: Concepts
and practices (6th ed.). Belmont, CA: Wadsworth, Cengage Learning.
Acting as an administrator that needs to make the decision about contacted maintenance services is a very poignant task. More and more in Michigan, due to decreases in available resources among other things, schools are making the tough decision to 'outsource' different departments within their organization. As mentioned in the Sept. 3rd 2013 Oakland Press, "in 2012, 335 of the state's 549 public school districts, or 61 percent, have now privatized one or more services. For 2012, 16.2 percent, or 89 out of 549, of Michigan school districts use a private company for transportation -- a number that's climbing at a rapid pace. Along with transportation, custodial and maintenance services are often privatized as well. For example, according to MEA’s website, Southfield Public Schools laid off 350 employees recently after privatizing transportation, custodial & maintenance services. These decisions that have been made to privatize are exclusively for perceived cost savings for the school district. How the decision is made is related to the various components of organizational change.
ReplyDeleteFirst, the decision to privatize custodial/maintenance services is best described through market accountability. Many districts are facing budget concerns due to decreases in funding and/or legacy costs within their district. To maintain programming and compete against other districts as well as other non-traditional settings, districts may privatize services to cut costs while still appear just as attractive to a prospective family.
The major sources of resistance to change involved in this decision would be primarily threats to power and influence as well as the interference with economic need fulfillment. All of which are detrimental to the employees involved, their families as well as the community at large.
Many of the strategies to overcome resistance to change should be used to address this issue. In the face of financial strife, participation, communication, and even planning could be used to implement the change effectively. Asking those involved or effected by the change to offer input and suggestions often ‘builds ownership for the change’ (Lunenburg, F.C &Ornstein A.C., 2012, p. 188). Communicating the reasons and nature of the change clearly to everyone involved in the organization will lessen the potential resistance force of fear of the unknown (Lunenburg, F.C &Ornstein A.C., 2012, p. 189). Planning accordingly and communicating the issue and process in a timely and appropriate manner would communicate a sense of empathy and understanding to overcome resistance to the change.
Long story short, the decision to privatize is most certainly a financial decision and needs to be a decision of last resort. Realizing that the decision is most often one of cost savings, a district needs to communicate effectively to the community any other reasons why privatization is being chosen. For example, Southfield Public Schools privatized food, buses and custodians several years ago, which was estimated to provide $14.7 million to $21.5 million in savings over the first three years, according to the Mackinac Center for Public Policy. This sounds like the golden ticket to save their budget, but even without privatization, but according to MEA’s website, (Southfield) rejected $18 million in concessions over three years from the employees, who are members of the Southfield Michigan Education Support Personnel Association, an affiliate of the Michigan Education Association. Why not accept concessions and keep your employees versus laying them off for the same financial gain? Knowing that the numbers are not the whole story, I would choose to keep my employees in the family and not privatize services unless it was a last resort.
In the book it says” Adaptiveness, flexibility, and responsiveness are characteristics of the schools that will succeed.” That being said, outsourcing vs. in sourcing can provide added benefits financially for a school district. The bottom line is many schools are facing a budget crunch and are being forced to downsize teaching staff, increase classroom numbers, and find cheaper ways to complete different tasks. The main areas that have been outsourced have been in the custodial, food, and transportation departments. Making changes in a system that has been in place can interfere with the worker’s need for fulfillment.
ReplyDeleteFirst, the need for fulfillment is primarily economic in nature, but can also be social, esteem or other needs. Any time that a person attempts to change the current system that would result in a lower pay scale or job status, it is expected to be met with resistance. In almost all cases of outsourcing, the resulting decision has reduced staff pay or even the loss of their job. For many, this type of economic change is unacceptable and they lead the resistance against such measures. Outsourcing has caused a lot of uncertainty in regards to the pay system. Many individuals are offered a similar (sometimes the same) position for a percentage cut. This will ultimately disrupt the workers sense of economic stability. Furthermore, outsourcing’s main proponent is that it saves the district money through the fringe benefits and salary. Workers who transfer into the outsourced job will have their pensions frozen, get lower pay, and have to change their insurance, which changes the premiums paid by the district. Regardless of the employees and morale, sometimes outsourcing is the only financial decision a school can make before they begin running at a deficit.
In order to outsource, an administrator has to have a clear goal in mind and communicate effectively with the staff. It will be met with resistance, but there are steps that can be taken to minimize the resistance. I have been in a building where the custodial work was outsourced. We went through 4 different staff members on our outsourced custodial team. It was extremely frustrating because each person had a tough time performing the task of cleaning the school. Our building was not cleaned properly and it was evident by the firing of 3 individuals. I am for outsourcing when it is necessary for a school to move forward, but I am not for a reduction in quality of work. The teaching staff and students ended up paying in my case because the messy school led to a messy environment. Personally, I am against outsourcing unless it is not economically feasible to run at the current system.
Ornstein; Lunenburg (2013-02-01). Educational Administration: Concepts and Practices (Page 184). Wadsworth Publishing. Kindle Edition.
Decisions based on contracted versus system-supplied operation maintenance services is something that administrators have faced within the past five years. The decision should not be taken lightly for the fact it might have long-lasting repercussions to the future of the district.
ReplyDeleteThe case for contracted employment benefits includes cost flexibility with the contracted firm, paying for what they want done. Competition from outside firms also can expose gaps in current organizational structure or how things are done as well as bringing in fresh ideas of how to do things within the school. The final benefit would typically cost savings that the contracted company will handle paying for wages and benefits and providing consistent labor through their larger work force.
The case for system- supplied operation maintenance services is the employees are typically from the community. These employees have a vested interest in seeing the school maintenance tasks being completed at a high degree. These employees also have a wide knowledge base about the school and function because of the experience they have gained over the years, helping to make repairs and maintenance quick and efficient already. Their knowledge base in the layout of the buildings can also save on future additions or buildings because the true needs of the school are well known.
Negative impact by contracted workers include the possibility of employees that are supplied by the contracted company might not be local, taking away supportive jobs from the community. Contracted firms also don’t have the knowledge of the buildings that is not found on blue prints, which can cause problems in the future. The lack of community feeling might lead the contracted firm just to complete check lists, rather than doing something that might not be on the list to keep the maintenance integrity of the school intact.
Adverse impact by system supplied maintenance is typically related to wages and insurance which is a financial concern for the future of the district.
As Lunenburg says about process consultation, it helps the organization’s participants obtain insight into the organizational process, the consequences of these processes, and of the mechanisms by which they can be changed. Schools need to be fiscally responsible, it is the administrations responsibility to look at change with open minds and decide what is best for each district. The individuality of each districts situation makes it impossible to apply a broad answer to this question.
Lunenburg, F. & Ornstein, A. (2008) Educational Administration. Concepts and Practices. 5th Ed., 220-221.
I have read the comments, and the problem I observed in our school district high school and career academy was the lack of cleaning of the desks and tables in the classrooms that are used each day by the students. I moved a desk out into the hall and I could not believe how dirty it was, I got wet towels to wash it and several teachers said "that's a first". If your employees are not supervised to do the complete cleaning, how much will it take to be sure outsiders will comply? The is a school district that outsourced their payroll, some companies are outsourcing some HR tasks to save money. The community, unions, money so on must be considered.
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ReplyDeletePrivatizing services in a charter school is a very different situation. Since charter schools often have smaller student bodies and do not always participate in unions, insourcing employees is an easier task. Without union membership, all employees are “at-will” employees. Full time employees are offered reasonable benefits often including health insurance, life insurance and a 401K. There is no tenure, pensions, or union representation in an employee termination.
ReplyDeleteAt my school, we are able to privatize our custodial staff and our substitute teachers. I really appreciate being able to choose these people personally since they are often in close contact with the students. If we needed a lot of substitute teachers or numerous custodians, this might not be possible. As we grow, this policy may no longer be cost effective.
We have outsourced our lunch program. While this keeps our costs down, it is very difficult to let go of control of the lunch program. We’ve had numerous problems with our food service program and because we’ve outsourced, I have very little control over what happens. When we originally put the bid out, we only got one back. This left me with no choices.
There are definite disadvantages of outsourcing. You are at the disposal of what the community has to offer. You must put your trust in another organization with its own management policies and procedures. I understand the cost benefits of outsourcing but overall I feel like the problems of depending on other organization often interfere with the protection of a school’s reputation and the students’ well-being.
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