Many companies go back and forth about whether or not they should outsource HR, or at least specific human resources functions. HR outsourcing provides you with many potential benefits such as the ability to save time and money. But there are also many challenges that you could face, namely, pushback from your employees and how outsourcing HR can impact company culture. These need to be addressed in order for you to successfully outsource HR.
TOP CHALLENGES FOR HR OUTSOURCING AND HOW TO OVERCOME THEM
Here are some of the top challenges companies face when considering outsourcing HR:
1. EMPLOYEE MORALE:
Many people may feel uneasy or intimidated when it comes to talking about outsourcing specific business functions. This is common. They key is to be transparent with your employees about the process and provide reassurance that this is a beneficial strategy for the company as a whole.
2. EMPLOYEE SATISFACTION:
Most employees are used to dealing with people directly within the company they work for, especially when it comes to human resources-related issues such as employee benefits, health insurance, or compensation. To ensure you satisfy employees, it’s important for someone internally to act as the liaison between your company and the outsourcing company to guarantee the same level of attention.
3. WHAT TO OUTSOURCE:
HR companies offer a number of options when it comes to outsourcing. It’s common for many organizations to outsource a few HR functions first and see how it goes, before taking a more aggressive strategy. An effective approach is to keep the more personal HR functions – such as hiring, firing, performance reviews – in house, and outsource more general HR tasks such as employee benefits.
Security is one of the biggest challenges and concerns when it comes to outsourcing. With data leaks becoming a more common occurrence, many companies are concerned about cyber security. How HR will be outsourced, how outsourcing companies will protect sensitive data, and security measures taken must all be considered.
These are some of the top challenges faced by companies when considering an HR outsourcing strategy. The key to successful outsourcing is to make sure you are outsourcing the right HR functions, the ones that make the most sense for your company, while being transparent and involving your entire organization in the process.
MORE TIPS AND ADVICE ABOUT HR OUTSOURCING
Felicia is the manager of human capital solutions at AugmentHR. With over six years of recruitment experience coupled with multi-faceted HR roles, Felicia is an expert in matching people with the right role and environment. She has worked in many different industries, including investment banking, HR consulting firms, medical, and commercial. Understanding people is one of her strengths, and she has recruited at every level, from directors, project managers, and engineers to operators and general labourers. Her ability to network and develop relationships has been a key tool to her success. With approximately two years of experience managing people and creating a positive work environment, Felicia’s diverse skill set makes her a well-rounded individual. Her business education and background help her identify different business needs and human capital solutions.