5 HR Outsourcing Disadvantages

Today’s business environment changes at a rapid pace and it takes a team of professionals to keep things running smoothly. As your staff grows so does the need for a strong Human Resource presence. Has your organization been faced with discussions on outsourcing HR functions to save money? Consider these HR outsourcing disadvantages when faced with the HR outsourcing dilemma:

Time. Every time there is an organizational strategic change, it would be necessary to “bring vendors up to speed,” and in today’s business environment, that happens frequently. Can you afford to dedicate staff to updating outsiders on your business objectives?

Control. When HR functions are outsourced, organizations lose control over who is doing what and the details surrounding it. Challenges arise when communication breaks down and the left isn’t sure what the right is doing. Things can get confusing, leaving room for mistakes and miscommunication.

Dependent. The more you delegate functions to outside vendors, the more your HR team is dependent on them. It becomes a risk if the vendors quality is subpar or goes out of business. If the work must be brought back in house, a lot can fall through the cracks. Do you want to risk your reputation to save a few bucks? Probably not.

Integration. Vendors don’t always collaborate with each other to provide integrated solutions. They mostly work independently and their recommendations may, in fact, conflict with other vendors. If you decide to outsource, research vendors that integrate and streamline your processes through strong relationships with other industry related businesses.

Knowledge. Industry professionals are now realizing that outsourcing eventually leads to a knowledge deficit. HR ends up knowing less and less about their own operations and people because they are not directly involved.

Are you thinking about outsourcing your HR functions? Before you do, call the experts at PREEMPT CORP to discuss ways to keep your HR team sharp and productive so that you can avoid these HR outsourcing disadvantages. You’ll be glad you did!

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