Small companies choose partial or complete outsourcing of HR for an obvious reason - to save time and money which are two crucial assets at the time of a company's growth. It is, however, not always a good choice. The easysmallbusinesshr.com website therefore published an overview of the advantages and disadvantages of outsourcing HR in small businesses.
Advantages
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HR outsourcing can reduce costs and you will no longer have to worry about the outsourced HR functions.
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You will not have to follow the complicated legislation concerning employment or spend hours on interviews with job seekers. You couls focus on your core business.
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if you outsource training, your new employees will be comming already trained.
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You could reduce the risk of potential legal effects on your company.
Disadvantages
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You may receive lower quality services than you imagined. Therefore, you should thoroughly check the references of the company that you will choose for outsourcing.
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You can have higher costs than expected. It is essential, therefore, not only to choose a good partner for outsourcing but also to have a good plan of cooperation.
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HR outsourcing is likely to cause lay-offs, so you wll have to deal with dismissing internal employees.
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Hidden costs may be another big disadvantage. Therefore, prepare your contract well to make clear under which circumstances your partner can demand higher payments from you.
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