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Are there any downsides to outsourcing my Human Resources functions?
Home » Human Resources » Human Resources Outsourcing » Are there any downsides to outsourcing my Human Resources functions?As with anything, there are potential downsides. The biggest of which is whether hiring an outside company is financially viable for your company. Do your research. Figure out how much you’re paying to have your HR functions done currently. Then price them out with several HR outsourcing firms. Compare the costs. Is it better to have one person on staff to handle all human resources tasks? Or, when piece-mailing out the tasks, is it more cost effective to hire it done by an outside company? The answer depends on the size and complexity of your human resources needs, and the fee you’d have to pay a full- or part-time employee vs. the total amount you’d pay for the functions you need handled.
Other downsides of hiring out these functions include the difficulty of communicating with a person or group located remotely. There’s something to be said for employees or managers being able to walk down the hall and ask a quick question of a colleague about payroll, benefits, or investments, without having to wait on hold or send out an e-mail for an HR representative at another company. And employees are more likely to ask questions, and feel that their needs are being taken care of, by a live, in-person, professional.
If you have to fire an employee who’s currently handling HR functions, you’ll face the ire of that person, as well as the ire of those who’ve witnessed a loss of a colleague or friend. Think twice before firing one person just to outsource his or her job. How will you justify and present this change to the rest of your team? Will they understand? Or will the ramifications be more than you want to face?
Overall, outsourcing your HR functions, especially if you’re part of a small business, can make great sense financially. Just make sure you research the process carefully, make sure it will streamline well with your current system, and that it’s the most financially viable way to go, while maintaining peace with your office.
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- Are there any downsides to outsourcing my Human Resources functions?