Evaluate the strategic, performance, ethical, and social responsibility issues associated with outsourcing HR, and how you would address and balance these issues as an HR Director.
Companies Outsourcing Human Resource Functions
The strategic factors are considered when an organization comes to the decision of outsourcing. They look at the liability of their actions and the effectiveness of the resources at their disposal. When an organization does not have the experienced personnel or is not willing to invest time and money into developing it, outsourcing makes sense. What is interesting is how many organizations are outsourcing many of their human resource functions (Noe, Holenbeck, Gerheart, & Wright, 2010)..
The factors to be considered are as follows:
1) Decide how many human resource employees the organization needs to handle every facet of providing service to the company and to the employees.
2) Analyze the cost of educating human resource personnel to get them to the level of expertise that outsourcing organizations have in handle human resource tasks.
3) The benefits of outsourcing rather than purchasing hardware, software, licensing, staff to support those, and facility arrangements to house them.
4) Problems with outsourcing such as poor communication, poor customer service, security breaches, and inflicting low morale in the company due to outsourcing.
5) Advantages or disadvantages in keeping human resources in-house.
All of these are important to not only discuss but actually study to know what steps to take before taking that initial step and falling down.
Human Resource Activities to Outsource
The organization must determine exactly what to outsource. What specifically should be outsourced? Anything that is confidential should not be outsourced especially if it concerns patents, licensing, or personal information. Companies that handle outsourcing will give you "guarantees" but this does not "guarantee" anything. It is important that companies who handle outsourced information have a reputation of being in business for many years doing this kind of ...
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