What Are The Risks Associated With Hr Outsourcing?

by admin on 09/05/2013

We have been repeatedly provided the benefits of getting HR outsourcing services. But as with everything else, this commodity is also associated with a number of disadvantages. With this said, it is your responsibility as a consumer to be thoroughly educated about what you intend to get before you actually invest anything. That way, you can aptly adjust to the results and don’t end up getting surprised by what happens next.

First of all, human resource outsourcing takes away the human aspect in manpower management. Since you are getting people outside of the office to monitor your staff’s well-being and performance, there’s less face-to-face interaction between management and employees. And in place of that, people get insensitive and often apathetic phone calls regarding their career plans, co-workers and retirement – issues that are personal in nature. How could you expect your workers to feel secure and satisfied with this kind of system when they can’t even associate a face with a voice?

Second, HR outsourcing promotes company dependence on third party intervention. And this could run the risk of abuses when it comes to payment and information control. You could find out about hidden charges and not be able to do anything about since you are bound by contract. And with the added disadvantage that these services could legitimately increase a company’s expenditure by about 30% yearly, it becomes an even more daunting prospect.

The third downside to getting external HR services is the fact that it doesn’t motivate the workers to extend respect to administrators. It’s no secret that one of the motivations for acquiring this commodity is to simplify the employment turnover processes. And while this may not hold true to your intentions, you can’t prevent people from assuming the worst. Sure, it does help free up important personnel for other responsibilities. But when it comes down to it, human resource management is innately part of a company’s core processes. And what happens to the employees, due to a third party’s actions or inaction, directly affects the business and not them.

Fourth, HR outsourcing makes it impossible for companies to develop their own unique manpower signature. HR agencies often equip candidates with standard skill sets that are required for their line of work. This implies that different companies within the same industry which they serve will most likely have the same level of worker expertise. It would be impractical for companies to provide their own staff training because those workers provided by a third party may be pulled out any time to serve another. This disadvantage extends to poor career development since there is a very minimal chance externally hired workers are able to learn something new from where they are stationed.

Finally, outsourcing HR functions run the risk of changing a company’s culture. It can literally separate management from their employees, making it difficult to communicate and coordinate. Management may not even have any control over the background and qualifications of the workers that get into their fold. And as a result, they become incompetent in their position.

Comments on this entry are closed.

Previous post:

Next post: