Disadvantages Of Human Resource Outsourcing
The disadvantages of human resource outsourcing are usually listed as cost creep and loss of control. The one that hurts most is response time when something serious happens.
A harassment disclosure, a workplace incident or an allegation against a senior person all need a response measured in hours. Somebody on site to separate people, take immediate steps and make decisions with the context to make them.
An external provider works to a service agreement, may be across several clients, and does not know the individuals involved. The advice may be sound and it arrives after the first day, which is when the matter is largely shaped.
The practical answer is not to insource everything. It is to decide in advance which situations require someone internal, and to name that person before you need them.
The Fair Work Ombudsman covers employer obligations. This is general information rather than legal advice, and obligations vary by state and territory.
See Sentrient’s workplace compliance system and respect at work training.
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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