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The role of an outsourced HR consultant in change negotiations

Ahlqvist, Riina (2024)

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Ahlqvist, Riina
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024112530061
Tiivistelmä
In early 2022, a new Co-operation Act came into effect in Finland. The revised law guides employers and employees to engage more actively in interaction and dialogue with one another. It emphasizes the importance of maintaining and developing cooperation in change negotiations.

This thesis examines the role of an outsourced HR consultant in change negotiation situations following the new Co-operation Act. The research focuses on small and medium-sized Finnish companies, exploring how they perceive the role of an outsourced HR consultant and how they have used outsourced HR consulting when initiating change negotiations under the new law.

Change negotiation is part of the Co-operation Act, which states that companies employing at least 20 employees must comply with the Co-operation Act when planning layoffs, reductions, or organisational changes. In change negotiations, the parties involved are the company’s employer representative and the employees' representative. HR often plays a role in negotiations, and this study examines the role that an outsourced HR consultant has had. An HR consultant is a professional working in the HR field and may specialize in a particular area. HR consultants assist company management in HR practices and processes. When a company outsources, for example, HR, they make a contract with an external company to assign them a specific task. Out-sourced HR consulting has already become more common and can be seen as a suitable option.

This thesis is a qualitative study, and the data was collected through semi-structured interviews held in the fall of 2024. Six individuals in management positions participated in the research. Each of the participants has been the employer’s representative in change negotiations where an out-sourced HR consultant was also involved. Thematic text analysis was used to analyse the data. The collected data was first categorised, and from the categorisation, three themes were found. These three themes are 1) the Co-operation Act and its legal aspect, 2) the change negotiation process, and 3) Expertise.

Based on the research results, it can be concluded that small and medium-sized companies perceive the role of an outsourced HR consultant as one that supports both the employer representative and the employee representative. An outsourced HR consultant can bring expertise, prior experience, and specialised knowledge of the Co-operation Act and the change negotiation process. Engaging an outsourced HR consultant in change negotiations can be a beneficial and cost-effective option for small and medium-sized companies.
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