HR Outsourcing - The Pros and Cons of Human Resource Outsourcing
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Firstly let’s define what HR outsourcing actually is. HR outsourcing is when you hire another company to manage your HR responsibilities, rather than dealing with them in house. This frees up man hours and allows you to focus on what’s really important – running and developing your business. But as with any BPO, HR outsourcing has its pros and cons.
The Pros
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. What’s important is you don’t have to waste time conducting the interviews yourself.
On top of this, if you feel that your employees would benefit from training you can make a call and the HR Outsourcing company will do the research and registrations for you.
If you do decide to outsource your HR, you will only pay when they do the hiring for you or when they find you a course. You pay per appointment, rather than a fixed rate.
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.
They can also offer advice on staff benefits, specifically which benefits would be financially feasible for you and your company.
The Cons
It costs money to outsource your HR. You also need to give them specific instructions in addition to explicit job descriptions. This means your communication with them must be crystal clear.
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.
Occasionally an HR outsourcing company works '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.
