Advantages And Disadvantages Of Human Resource Outsourcing
The advantages and disadvantages of human resource outsourcing vary considerably by model, and the three common arrangements are frequently discussed as though they were one.
Transactional outsourcing. Payroll and administration only. Low risk, clear boundaries, and it leaves the judgement work in house.
Advisory retainer. An external HR consultant available for questions and difficult matters. Useful for organisations without an HR function, and it depends heavily on the individual rather than the firm.
Full function outsourcing. The whole HR operation. Efficient on paper and it removes the person who knows your workforce, which is where most of the value in HR sits.
The failure mode is choosing the third for cost reasons and discovering that nobody now knows why a decision was made two years ago.
The Fair Work Ombudsman covers employer obligations. This is general information rather than legal advice, and obligations vary by state and territory.
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9 Reasons Why You Should Not Outsource Your HR
An efficient HR department is the lifeblood of every organisation. Some businesses are motivated to outsource this lifeblood, the main reason behind the motivation is the possibility of a reduction in management costs. While the reduced costs are lucrative, businesses might also want to consider other effects of outsourcing their HR department. This blog post […]
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