HR Outsourcing - The Pros and Cons of Human Resource Outsourcing
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HR outsourcing is when you hire another company to manage your HR responsibilities rather than dealing with them in house. This frees up personnel hours and allows you to focus on what’s really important – running and developing your business. But as with outsourcing any other business process, HR outsourcing has its pros and cons.
The Pros of HR Outsourcing
- It makes recruitment easier - HR outsourcing provides you with the freedom of hiring temporary staff and having the right candidate start within a few days. And if you need to hire someone permanently, then you can simply make a phone call stating the number of employees needed, what qualifications they should have, and when you would like them to start. While you'll probably still want someone from your company to interview the candidiates, all the tedious and routine work is taken off their hands.
- It makes training and development easier - On top of this, if you feel that your employees would benefit from training you can make a call and the HR company will do the research and registrations for you.
- It makes compliance easier - An HR outsourcing company will also know all the ins and outs of hiring and firing. This will save you the time and trouble of avoiding legal pitfalls e.g. what National Minimum Wage rate to pay or whether you can release someone for poor performance.
- It makes sorting out staff benefits easier - They can also offer advice on staff benefits, specifically which benefits would be financially feasible for you and your company.
The Cons of HR Outsourcing
- It costs money - You also need to give them specific instructions in addition to explicit job descriptions. This means your communication with them must be crystal clear.
- It takes away some of your control - The employee hired by your HR outsourcing company may not fit into the scheme of things when it comes to their personality. Everyone is different, so a serious and business-like person may not be a great fit for an easy going, fun loving office.
- It can work against your interests - Occasionally an HR outsourcing company can seem to be working 'for the employees', striving to get them things you cannot afford financially, such as benefits.
Article provided by Deminos - HR Outsourcing and Employment Law Specialists.
