Term Paper on "HR Outsourcing"

Term Paper 4 pages (1149 words) Sources: 5 Style: Chicago

[EXCERPT] . . . .

outsourcing Human Resource needs. The writer explores five published works on the topic and concludes that outsourcing human resource needs has a place in society, but the core elements of human resources, including labor relations should remain in the company. There were five sources used to complete this paper.

Within most companies there is a need for a Human Resources employee or department. Human Resource workers are responsible for the recruitment, training, termination and benefit supervision of the employees working within that company. For most of American history, the Human Resource needs within companies have been fulfilled with an in-house paid employee, but in recent years there has been a shift to outsourcing many Human Resource functions. The trend of outsourcing has drawn fire from many who believe that the best way to handle employee decisions and supervision is to use an in house department, but those who are outsourcing their Human Resource needs point to advanced technology without the cost, the ability to handle large issues, and the reduced need for in house staffing as reasons to choose outsourcing as an option. The answer can be found somewhere in the middle. The hands on supervision of labor relations and other benefits that an in house person can provide will never be sufficiently replaced by outsourcing, however, there are duties in which the cost and time involved are better left to hired outside hands.

ADVANTAGES AND DISADVANTAGES

When it comes to outsourcing Human Resource duties there are advantages as well as disadvantages to the practice.

The advantages revolve around cost and time factors in which the company may not have the ability to handle as well as an outside company could do it. Outsourcing is not the same as temporary contract work. Outsourcing occurs when a company is hired to specifically handle particular needs for a company with no immediate plan to bring those duties back into the company (Greer, 2002). The advantages of outsourcing therefore need to be able to be sustained for a long period of time or the cost advantage must be measurable for it to benefit the company in question.

One advantage of outsourcing is the time involved. When one airline recently decided to lay off almost 100,000 its employees the legal processing of COBRA insurance paperwork was a daunting. It made sense for that company to hire an outside company for the purpose of processing that need.

Another advantage of outsourcing Human Resource duties has to do with cost. Often times outsourcing the work can provide access to technological advantages to the company without having the purchase the actual technology. The use of the programs can be significantly beneficial to the company in questions while at the same time saving money without buying the software to be used (Greer, 2002).

Disadvantages of using an outsource company for one's Human Resource needs includes the fact that the company can be come overly dependent on that source (Greer, 2002). In addition, the removal of the duties from within the company can create a distance between the employees and the employer that has the potential to reduce company loyalty.

Outsourcing Human Resources is a big issue in organizations today for several reasons.

The cost of outsourcing is in the tens of millions of dollars over a five-year period according to research studies. This cost is an important factor to consider when deciding whether or not to outsource. In addition the… READ MORE

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