Outsourcing HR Services Pros And Cons
Outsourcing HR services pros and cons are not fixed. The right answer changes as an organisation grows, and the common error is keeping an arrangement that suited a smaller version of the business.
Under about twenty people. Outsourcing usually wins. There is not enough HR work to justify a role, and the owner or office manager is doing it between other jobs.
Twenty to a hundred. The hybrid point. One internal person who knows the people, with external specialist support for payroll, award interpretation and difficult matters.
Above a hundred. The judgement work outgrows what an external adviser can do without knowing the workforce, and the volume justifies internal capability.
The signal that you have outgrown an arrangement is usually the same. Decisions waiting on someone external who does not know the people involved.
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 HR management system and workplace policy templates.
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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