What Are The Advantages And Disadvantages Of Outsourcing Hr Functions?

Within a company, the HR staff is responsible for recruiting new employees, firing them, managing interpersonal problems and a variety of other functions. Many companies rely on internal human resource professionals to perform these tasks, but other companies rely on outside companies to handle these matters. For companies of all sizes, there are advantages and disadvantages to outsourcing of HR functions.


HR professionals are responsible for identifying suitable candidates to fill a vacant post. Recruiters advertised positions, reviewing CVs and interviews conducted whenever there is a vacancy. But if for an extended period of time no one leaves or is fired, HR recruiters have very little work to do. Instead of paying internal recruiters to work throughout the year human resources, companies that outsource HR functions have the luxury of being able to pay recruiters as long as the jobs are vacant. These companies hire recruitment agencies specializing in finding candidates for employment. The agencies receive a commission when the position is occupied. Therefore, outsourcing saves money in terms of wages recruiters.

What Are The Advantages And Disadvantages Of Outsourcing Hr Functions?


Some positions are hard to fill because few people have the knowledge necessary to carry out the work. In other cases, new hires have to deal with extensive training of employees before they can start working. The outsourcing companies may encounter problems when an employee quits, as it could take weeks or months for the recruitment agency covering the position. However, many companies have HR departments have a proactive recruitment policy involves hiring and training new employees before opening positions, to ensure that the company has candidates to fill jobs when other employees leave.

Interpersonal Problems

When a dispute arises between two employees, the employee’s supervisor or human resources representative can handle the conflict. If supervisors have time to address these issues, the company does not have to pay a human resources specialist to perform a task that a supervisor can easily perform. However, things become more complicated if a dispute between an employee and a manager arises. In theory, the boss himself the manager could try to solve the problem. However, within a large company, you reach a point where departmental managers report to executives or directors who are headquartered elsewhere or even in other states. Therefore, companies that outsource HR functions may have trouble resolving employee issues.


It is expected that representatives of human resources within an enterprise carry out various tasks ranging from conducting interviews until settlement of wages. If subcontractors these functions, then you can hire a specialist to liquidate salaries and hire another company that specializes in the recruitment company. Proponents of outsourcing argue that you will benefit from assigning specific tasks to individuals, rather than waiting for a group of people dominate various tasks. However, foreign companies know little or nothing about the corporate culture and the implementation of your business. The practices that may work elsewhere, may not do as well in your company. If you hire professional internal human resources, then you have a team of people who understand the workings of your company.

Worth Reading

The Best Way To Buy The Car Of Your Dreams
Encouraging Your Children To Save
6 Ways To Advertise Your Business In Your Local Area
Reasons Why You Might Need A Master’s In Law
Online Gaming Brands