Should You Outsource HR?
Posted February 15th, 2016
Most companies handle their human resource function in-house. But, for one reason or another – cost, efficiency, fewer management hassles – some companies decide to outsource their human resource activity. Is this a viable option for your company? Here are a few things to consider when making this decision.
1. Will it save you money, and is the saving worth the effort? How will you assess how well outsourcing is working?
For many companies, cost is the primary driver for outsourcing, reducing the cost-per-hire. At first glance, it may seem easy to determine if your business will save money. But you need to be careful, because things may not be so simple. You have to make sure you are comparing the same things. It may be more difficult to judge cost reduction if the company manages some parts of the hiring process while the vendor handles others. Conversely, it is much easier to determine cost savings if the entire HR operation is outsourced.
Another thing to keep in mind – even if you do outsource all HR operations, you will still need to supervise the operation, so you will have some HR activity going on within your company that you will have to pay for.
Also, cost should not be the only factor to consider when hiring an HR vendor. You also have to think about the quality of hires they make, how long these hires stay with the company, and how long it takes the vendor to fill job vacancies. Another thing to consider is what technology the vendor uses to track the operation and the finances of the HR work. You want to make sure that the systems used by the vendor mesh well with the company’s.
If your company has an effective system in place to evaluate the performance of new hires, then you should have no problem seeing how well the vendor is doing compared to how your own in-house department did.
2. Is the HR vendor someone you can really work with?
Good vendors will work with your company to determine the goals of outsourcing and how to measure if you are reaching those goals. A good vendor is flexible in working with you. You also need to set up clear guidelines for what the vendor will do, how they will be held accountable, and how the whole process will be managed.
At Bayside Solutions, we know the importance of trust, integrity, consistency, and accountability. That is why you can trust Bayside to consistently find the best people for your San Francisco area business, people with integrity who can get the job done. Give Bayside, an industry leader in technology-related staffing, a call today.
