The human resources department function as the heart and soul of any company. They handle all of the complexities day in and day out for many different employees. Their responsibilities range from recruitment, to benefits, to payroll, all the way to training. If it were not for their actions, many companies would not continue to grow and succeed. While outsourcing for human resources can be cost efficient, there are also some disadvantages that coincide. The following are several pros and cons to outsourcing for a human resources consulting service.
When outsourcing for human resources, it means the company is investing in this specialized service. One of the biggest pros to this is the cost management aspect. The company is able to cut costs by saving on some of the major equipment that is necessary such as supplies and computers and software. The costs of human resources in general is one of the biggest driving factors in outsourcing hr and all of its tasks that go along with it.
Core convergence is just another pro of letting hr be outsourced for a company. Oftentimes, tasks such as employee assistance, hiring temp workers, and counseling are delegated to those working in human resources. While these are tasks that need to be taken care of, they certainly are not integral to the product or service that the business is offering. Hiring a set of specialists and outsourcing hr allows the rest of the team to stay focused on the ultimate mission of the company.
Of course the disadvantages of outsourcing hr need to be thought out in depth as well. When outsourcing hr, it is typically moved to an offsite location. One of the major cons of this is that it can create what many employees feel is distance between them and the company. Many of the employees may feel that they do not have access to the human resources department, and it can create a delay in any form of communications that they may have with them. This can begin to cause frustration on behalf of the employees and easily lead to tension within the workplace. While it may be cost effective in the end, it’s critical to consider the employees feelings.