HR City

The Pros and Cons of Outsourcing the HR Department

By SiliconIndia   |   Monday, December 10, 2012
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Bangalore: The HR department is the only place in an organization where every employee needs to keep in touch everyday either to take a leave, enquire about salary, resignation formalities, legal compliances etc. However, recently, many companies are outsourcing the human resource department. They think this is a better way of reducing the cost and to concentrate on their own business.

Although the idea of HR outsourcing is the current trend in many companies, but it has got some drawbacks. Phyllis Korkki states in nytimes.com that according to some HR experts outsourcing the HR department is not giving positive results due to the fact that most of the employees are suffering in their workplace. Employees are not getting proper training and career development which they should get while joining a new company. Employers are also losing their key businesses in this process.

Another disadvantage is that when the department is detached from the organization, the human resource professionals may not have any information about what the company is into and this can affect the hiring process. If they are recruiting for a particular company then they should have a thorough knowledge of the company and this will enable them to answer any queries made by the candidates. Similarly, if an employee has to get some details about the company norms they would need to either call up the outsource firms number or check the website which is a wastage of time for both for the employee and the company.

However, if you look at the other side of the coin you'll find that companies which prefer outsourcing are free from the extra burden of HR work load which is very sensitive in some cases. For them hiring, retaining and all other HR work follows some rules and regulations which the outsourcing firms can easily take the responsibility.

One thing that companies can do rather than getting rid of the HR department is compromising. They could keep the head of the HR department and some important personnel to check whether the job is done properly or not. They can give training to the new employees and familiarize them with all the procedures.


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