What are the pros and cons of outsourcing the HR Department, and is such outsourcing popular in the middle east ?

A co can outsource all non important activities but cannot outsource its core activities. In HR activities payroll services can be outsourced but  training and final recruitment activities should never be outsourced. 

This is because there could be instances of corruption which could affect the co adversely.

 

In some instances people refereed by a certain job consultancy could  be shown preference over others ( because they are known to the people in the hr dept, the consultancy firm earns a fat commission and shares a part of it with the HR staff). This could be a hurdle in the best candidates being selected. 

HR is not one thing: it is a bundle of different tasks.  Nobody outsources all of them.

 

 

HR professionals are responsible for identifying suitable candidates to fill job vacancies. Recruiters advertise positions, review resumes and conduct interviews whenever positions become vacant, but if no one leaves or gets fired for an extended period of time, then the HR recruiters may have very little work to do. Rather than paying in-house HR recruiters to work year round, firms that outsource HR functions have the luxury of being able to pay the recruiters if and when job positions become vacant. These firms hire specialist recruiting agencies to find job applicants and receive a commission when the position gets filled. Therefore, outsourcing saves money in terms of recruiters' wages.Training some job openings are hard to fill because few people have the requisite skills to carry out the work. In other instances, new hires have to undergo extensive training before they can begin work. Companies that outsource recruiting could run into issues when an employee quits because it could take weeks or months for the recruitment agency to fill the position. However, many firms with in-house HR departments have a proactive recruiting policy that involves the HR staff hiring and training new employees before positions become open so as to ensure the firm have candidates to fill jobs as soon as other employees leave. However, Interpersonal Problems when a dispute arises between two employees, then either the employees' manager or an HR representative can handle the dispute. If supervisors have time to handle such issues, then a firm need not pay an HR specialist to carry out a task that a supervisor could easily perform, but things become more complicated if a dispute arises between an employee and a manager. In theory, the manager's own boss could attempt to resolve the issue, but within a major corporation, you reach a point where departmental managers report to executives or directors who are based elsewhere or even in other states. Therefore, firms that outsource HR functions may have problems resolving employee issues. Considerations In-house HR representatives are expected to perform several tasks ranging from conducting interviews to processing payroll. If you outsource these functions, then you can hire a specialist firm to process payroll and hire a separate firm that specializes in recruiting. Supporters of outsourcing argue that you benefit from assigning specific tasks to individuals rather than expecting one group of people to master several tasks. However, outside firms know little or nothing about the corporate culture and the set-up of your firm. Practices that work elsewhere may not work as well within you firm. If you hire in-house HR professionals, then you have a team of people who understand how your company works.

Outsourcing actually depends on organization business nature, size, structure and market coverage. Outsourcing is important for HR department to hire trainer, consultant for specialized work.

The Pros and Cons of Outsourcing Should you outsource business functions or is i Q: Is outsourcing really a good way to grow my business? Q: Is outsourcing really a good way to grow my business? A: Outsourcing has become a big deal in our economy. There are articles and books written on it all the time, and you can attend countless seminars and speeches on the subject. I just did a Google search on "outsourcing" and got1,130,000 links. You can find a lot of information on this subject, and a lot of opinions on how to do it right or screw it up! One popular way this is described is that you should decide what you are good at and outsource everything else--i.e., focus your company on your core competency, and let someone else do the rest. That logic is sound in theory, and to a certain degree in practice, but like everything else you can take it too far. The key is to understand your business and its goals and decide how outsourcing might help you attain them. When deciding what to outsource, some things (legal services, printing, health insurance, etc.) are fairly obvious, and most businesses outsource them. Some functions are a bit less obvious, and people opt to outsource these task depending on their personal expertise. For example, if you have an accounting background, you probably keep your own books and file your own taxes. There are other things many people could--but probably shouldn't--do themselves. For example, most people could create a basic website or design their own logo, but the differences in the end result between doing it yourself and hiring a professional can be significant. There are some crucial aspects of your business you should probably not outsource. You need to keep an eye (your eye!) on them at all times. These include cash-flow management and, in many cases, customer interaction.

outsourcing can : increase increase productivity,cost saving, helping employees make job transitions and Workers not compete globally so individuals must continually learn more to view successfully with their peers worldwide

 

Agree with the previous answers distinctive .

Outsourcing is great when it is better for the company to concentrate on their core business but ideally it is worth looking into when deciding whether to do so or to have it done internally;

 

Advantages:

• Cost Reduction - companies that provide the outsourced functions specialize in their jobs and therefore can find ways to minimize costs.
• Staffing needs are controlled externally for seasonal job functions.
• Quality of service is improved in that the outsourced component is being handed over to a specialized entity hence the provision of the quality service which will be greater than when this was to be done internally.

 

Disadvantages;

• The function becomes impersonal and relationships are broken sometimes some of which are beneficial to the success of the organisation (detached clients and or employees)
• Poor process improvement especially with regards to handling issues that arise from the outsourced functions
• Loss of strategic alignment with the business' values, mission and goals.
• Decreased loyalty and a possibility of poor quality control. 

Outsource everything that is repetitive. Manage well to ensure it stays on course. 

HR should then focus on strategic, transformational