Outsourcing human resources is a necessary service in the context of increasingly challenging economic conditions and fierce competition. This service can solve HR problems while minimizing costs as well as ensuring productivity.
In this article, let's learn more about the advantages and disadvantages of outsourcing human resources services.
Advantages of HR outsourcing services
Businesses using human resource outsourcing services will gain many benefits such as:
Having the right HR solution
Ensuring core business activities, promoting supportive activities, and limiting high risks.
Ensuring work progress and efficiency while still saving costs
Advantages of HR outsourcing service
This service possesses outstanding advantages such as:
- Saving costs. Instead of building a business's own HR department, which require to pay more such as personal income tax, social insurance and health insurance for employees, this service can help businesses save a lot of costs.
- Building an organizational structure of full-time employees in the business will require having enough office space and working equipment such as computers, tables and chairs,... Meanwhile, with the rental solution, HR outsourcing only needs to invest in a part of this facility.
- For full-time employees, according to Labour law, it is illegal to take sick leave, vacation while the business continues to run the work. However, with the outsourcing service, the work will always be guaranteed to operate without interruption.
- Outsourcing human resources service also saves considerable time while the quality of transfer results is still guaranteed.
What are the disadvantages of HR outsourcing service?
Besides the above advantages, this service still has a limitation such as:
- Outsourcing human resources will lack ties to the company, making the business passive and dependent on these personnel.
- Outsourcing human resources in the peak period will be easily damaged by competitors, manipulated and reduced business productivity.
- The quality of work and the morale of the outsourced staff will greatly affect the business. Besides, the productivity and results will directly affect the quality of projects and determine the reputation of the business.
The result can be extremely close to the project's deadline, which means that when businesses receive the results, it can lead to having little time to edit in case they are not satisfied.
As mentioned, outsourcing personnel is a perfect option for businesses to save costs, but if the business uses the wrong HR outsourcing service or chooses a unsuitable service provider, the unprofessional working style will greatly affect the quality of work and cost efficiency.
Above are the advantages and disadvantages of outsourcing human resources services. It is obvious that this service will save costs for businesses, but with a service provider having poor quality, it can not only bring efficiency or even cause serious damage to business. Therefore, businesses should be very alert and research carefully to choose a reputable hr outsourcing agencies. To approach a company providing outsourcing services, businesses must ensure criteria such as the company's age, customer reviews, quality of human resources, etc. If businesses have the demand of more advice on services For human resource outsourcing, please contact Farovietnam's hotline.