The Difference Between HR Outsourcing & HR Management

Human Resources (HR) outsourcing is a viable choice for businesses who can’t handle the cost and time involved in internal HR management, or for organizations who simply want to have their employees focus more on growth, while hiring a professional to handle their Human Resource department. Handling the selecting, hiring and training of personnel, as well as motivating and compensating them can be a hard task for a company with a small number of employees. That’s when it makes more sense to outsource your HR.

Outsourcing your company’s Human Resource management or handling it in-house depends mostly on your financial situation. Either way, Human Resource management should be a priority in your company. Ignoring it or handling it poorly can result in serious financial or legal repercussions.

Advantages of HR Management

Managing Human Resources in-house is losing a lot of ground to HR outsourcing nowadays, but it still has its advantages. One of these advantages is the fact that, by handling HR internally, employees are more motivated to do a good job. Outsourced employees may not treat this job with the same dedication, or put as much effort into it as hired staff.

Another advantage is that the employee can be controlled easier if he or she is hired by your company than if the employee is outsourced and is only required to report to the HR outsourcing company.

Having an internal HR department means more jobs for more people, and that the employees who handle that aspect of your business can keep their jobs, which is not always the case when outsourcing HR. When a company chooses to outsource its HR, employees who can’t be used in other areas of the company will lose their jobs.

Advantages of HR Outsourcing

Outsourcing your company’s Human Resources frees up some of your employees who can be used to the benefit of other aspects of your business. By having an outside professional deal with your company’s HR, the employees that would normally handle that can now concentrate on growing the business through other, more important activities, such as developing new products, attracting new business, or improving customer service.

Another advantage to HR outsourcing is that your employees will enjoy benefit packages that are normally offered by larger companies, these packages being outsourced from the Human Resources outsourcing company.

Most HR outsourcing companies consist of people with great expertise in the legal and business field, so you can rest assured that your employees are positively influenced and receive qualified advice that will help them make the best decisions and help your business.

Final Thoughts

Deciding whether to manage your own HR or hire an HR outsourcing company depends on a few individual factors. Based on the advantages described above, you should take the time, do the research, and find out if doing the HR management in-house or hiring a company to do it is the best choice for you. But keep in mind that, just by having a Human Resources department, you are already saving your company money and a lot of hassle.

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