Advantage and disadvantage of outsourcing hr services

An HR consultant is similar to an HR employee of an organization/ company. The only difference is HR consultant has the right to offer his/her services to multiple companies at a time. They are not bounded to a single organization. Both of them have the same responsibility.

Major Responsibilities of an HR consultant is to perform advanced, specialized and administrative duties in a designated human resource program. He/ she is also responsible for high-level support in the administrative duties of human resources program. Human resources have to incorporate a lot of administrative duties/ responsibilities into their day-to-day tasks. Basically, they have to interpret human resources policies and offer their advice on the implementation of an organization or business. From interpreting policies to bestowing training sessions on complex HR procedures, HR consultants are responsible for continued compliance with a company/ organizations with HR policy.

Advantages

Cost Effective

Hiring Human Resources Consultants is very cost effective.
Let me explain you with an example when hr outsourcing companies, these HR consultants are more experienced and have specialized knowledge in comparison to your own HR staff. Hiring a single employee of that much experience and specialization would cost you more than hiring a team of HR consultants for your business. This is the most cost-effective way for smaller companies who can hire a team of HR consultants who will do their job efficiently.

Development of Employees

When hr outsourcing services functions, the businesses will be able to manage easily their employee performance and development. HR consulting services can also implement performance management plans.

Regaining primary focus

The heads of the businesses often get involved in the day-to-day HR issues which distract them from their main goals in their business focus. Outsourcing HR consultants will not only allow you to set your focus back on your main business goals but will also give you the comfort in knowing that the HR things are being taken care of. When your HR staff will work alongside the HR consultants, they might learn and grow and can keep focusing their efforts on their primary key areas as well.

Time efficient

HR consultants can help in creating some of the most difficult HR document such as employee handbooks and files and can help in establishing best practices. With this documentation, which contains answers to many employee questions, they will get consistent answers to their questions and work faster.

Employee satisfaction and decreased turnover
When an HR expert have an honest conversation with your employee about their work and bringing some changes that are fair and that will benefit everyone, will result in greater employee satisfaction, increased productivity and decreased turnover.

Disadvantages

Morale:

The biggest downfall in an employee’s mind is when an outsourced employee is brought in. This means fewer wages, job losses and pay cuts. Lower morale means lesser productivity. It can also instigate the feeling of rebelliousness within the employees. This can also lead to the working employees asking the organization about why wasting money on outsourced employees instead of giving out proper wages to the workforce.

Lack of in house expertise:

Another main drawback of outsourcing human resources from other companies are the lack of onsite experience and expertise. If a new consultant is hired, there is always a learning period which acts as an incubation period for the employee, where the employee learns about the organization. If this period is skipped, they have a higher risk of implementing changes that do not follow the philosophies and motives of the company. This can ultimately cost the company and may incur a large amount of loss to the company.

Confidentiality:

Any HR consultant worth talking will try to ask you about the privacy agreement. As an outsourced employee, try to do your job, and prevent such consultants from getting hold of confidential information about other employees.

Loss of human factor:

Reduction of face to face interaction with employees is the greatest drawback of outsourcing human resources. Employers would like to see a familiar face within the environment rather than talking on the phone when something happens. Such an exchange is not a positive exchange.