HR Outsourcing - The Pros and the Cons
There are pros and cons to HR outsourcing. However, what is HR outsourcing?
HR outsourcing is when you hire another company to manage your HR responsibilities rather than having an in house department.
The Pros
HR outsourcing can provide you the freedom of hiring temporary staff and having the right candidate start within a few days. If you did need to hire someone on permanently, then you make a phone call to say you need a certain number of employees with the following qualifications, including education and skills, and when you would like them to start. You will certainly get what you ask for.
Best of all, you do not have to do any of the interviews, which take time out of your day. If you feel that your employees would benefit from training, you make a call and they do the research and registrations for you - you pay the fees that are associated with the course.
In addition, if you do decide to outsource your HR, you will only pay when you actually use them. When they do the hiring for you, or when they find a course or two for your employees.
An HR outsourcing company knows all the ins and outs of hiring and firing, saving you the time and trouble of having to figure out what National Minimum Wage rate to pay, whether you can release someone for poor performance, and whether or not supplying your staff with medical benefits would be financially feasible for you and your company.
The Cons
It costs money to outsource your HR. As well, you need to give them specific instructions in addition to explicit job descriptions. Vague training programs make it difficult for the HR outsourcing company to find exactly what training you are seeking for your employees, and answering, 'I do not know' to a question regarding specific duties the employee would be doing will not help the HR outsourcing company one bit when they are looking and interviewing people for your company.
On top of all this, the employee your HR outsourcing company hires may not fit into the scheme of things when it comes to their personality. As you know, everyone is different, so a serious and business-like person may not be a great fit for an easy going, fun loving office. Again, this is something you would need to stress to the HR outsourcing company that you hire - another thing to mark down in the list of things to remember when it comes to talking to your HR outsourcing company.
Occasionally, however, an HR outsourcing company works 'for the employees', striving to get them things you cannot afford financially, such as benefits.
HR Outsourcing and Employment Law Specialists
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