Is It Smart To Outsource Personnel Management?
Human resource management should be done in-house instead of outsourced, right? That sounds like common sense. Why depend on an outside company to do your HR for you when you can DIY? However, for many burgeoning startups, their plate is too full to deal with their own HR department.
The staff they already have on hand tend to manage HR tasks already, such as calculating benefits, doing payroll, updating contracts, and dealing with on-staff issues between staffers instead of an outside party.
However, It Can Be Smart to Outsource HR
So is it smart to outsource personnel management or human resources management? The short answer is that in many cases, yes it is. If your company is spreading itself too thin or it needs an objective third party for managing personnel, outsourcing makes all the sense in the world.
• Just Find the Right Partner: Many companies hesitate outsourcing their HR responsibilities elsewhere because they’ve tried it before and things didn’t pan out so well. It had several challenges involving miscommunication and alienating the in-house staff. However, finding the right partner that can address such common issues is the key to outsourcing HR.
• Ensure Your Focus on Growth: Running a business is a never-ending treadmill full of stumbles and near accidents, but you’re not supposed to stop or else that spells doom and bankruptcy for a business with momentum. One way to help alleviate your pressure is to have a third party handle your personnel or HR management instead.
• To Gain Expertise: Small or mid-sized businesses won’t have veteran HR departments. They’ll all be learning from scratch, doing trial and error on what works and what doesn’t. Even experienced HR heads will have challenges dealing with a startup company’s rowdy personnel. Better defer to the experts to help build a more robust in-house HR down the line.
• Keep the Employees Happy: Most in-house HR departments are infamous when it comes to keeping the employees happy, with many of them coming off as impersonal or uncaring. A good HR management partner from the outside deals with personnel issues from different clients, so the best of them know how to handle such issues with veteran experience.
• Pro Team Building Exercises: You might think that it’s too impersonal to have an outsourced HRM or PM department but those who have in-house HR can attest to how those tend to bungle things like team building. It’s sometimes better to refer to the experts. It allows you to control costs and ensure professional team building exercises are done by true pros.