When Do You Need To Outsource? The Present Corporate Symptoms As To Why You Should Consider Outsourcing7 min read

Since the industrial revolution, companies have significantly evolved into a more systematic and functional organization. The introduction of technology and countless studies in commerce and corporate behaviors paved ways as to how companies should operate. Imagine a machine that requires every part to ensure that it’s capable to move or function; that can be metaphorically correlated as to how  each component of a company should function to guarantee development and growth. Although we must realize that sometimes there are present factors or dynamics that companies can’t do. Dynamics such as human resources which creates the backbone for any organization should be one of the key and most functional department an organization possess. When it comes to hiring, its essential that the Human Resource department handles all the aspects involved in maintaining a reputable company-employee relationship by evaluating the performance and status of all employees. Although it is a given, that working with people especially in companies can be a difficult feat as every employee acts and reacts differently. One of the many human resource issues can be stemmed from these main Human Resource functions and activities: The retention of an employee within a company, Recruiting the right  talents who can be beneficial for the firm, ensuring productive staff, and training employees to ensure compliance to standards of work, and creating a diverse and effective environment within the organization. These functions are what makes an effective human resource department although to really solidify an Human resource department, HR personnel must be aware and know how to strategize employee work, plan out their recruitment and selection, develop the employees through training, compensating and providing the essential benefits, formulate and enact just policies, create a significant relationship and consider all the potential risks that can and might happen within a business.

Now this is a lot to take in, and it indeed really is. But Human Resources must enact such activities to create a functioning and developing organization. Although, what must be taken into account is that some company’s don’t have developed human resource departments or have limited resources and capital to develop this department. Not to single out single proprietorships or small business, but their human resource departments aren’t as developed or as focused on as compared to large businesses. Regardless of size of business, its integral to create a system and organize all human resource related tasks of a company, its ideal to do so. Although, companies are too focused on their operations and sometimes put the human resource department aside to focus on more active departments such as Operations and Sales as this is a profit department, human resource departments on the other hand are cost departments meaning it would require the company to spend to keep such a departments up an running. What companies can consider to further develop their human resource department is to use the services of Human Resource consulting firms. HR resource firms help companies evaluate the current status of a given company and offer their own business solutions on how to better their Human Resource Department. The roles of a human resource consultancy firm would include: suggesting better policies and procedures the management can integrate within the firm. Evaluating the current human resource programs and citing evident solutions and recommendations, Creating a new system on how a given contracting company should operate their human resource department, assisting in creating more coordinated and organized methods on how to direct reports, data, and hiring, and even training companies on specific human resource programs. As mentioned before, the human resource department is considered to be a cost department, to limit the costs it would be helpful for a company to consider the services that a human resource company provides as they provide cost cutting solutions to create an effective human resource department that will be beneficial for any given firm in the long run. After all the human resource department manages the employees, and the employees builds and makes companies run.

Besides, Human Resource consulting firms, there are human resource outsourcing firms. These firms actually provide and fulfill human resource related activities for client companies. When it comes to hiring new employees, the process of doing so can be significantly expensive  and even more so if a company hires the wrong candidate. Hiring can possess many hidden expenses that the management of a company are unaware of and can actually take a toll in the overall overhead expense of a company. When a company considers to outsource particular functional activities of a firm to Human Resource outsourcing firms then they may save a considerable amount of money. The hiring process for example; via contracting the services of an outside human resource firm, a company can have all the right candidates in no time and without really breaking the bank for it. It saves companies a lot of time and money. Human Resource outsource firms have actually become very popular among small to medium sized businesses. It has become popular due to the fact that these companies don’t have the capabilities yet to create an effective and fully functional department, and if they do so then it may be too expensive. Having an in-house Human Resource department is an essential feat, but integrating the services of outsourcing firms can significantly help the company’s bottom line and would encourage the company to focus on business functions that will help the company profit.

Now why should you consider to outsource? Well to answer this question here are some scenarios that may encourage you to consider a human resource outsourcing firm. Let’s say for example, the payroll system within the company is faulty and would cause errors that would result in an overpay of salaries, The hiring of new employees is a difficult task due to a zero applicant turn out or all the applicants are not what the company is looking for, and lastly a firing process that would just hurt the reputation of the firm due to an ineffective policies and procedures. These said examples are one of the many Human Resource related issues that a Human Resource outsourcing firm can solve. These core functions are fundamental activities that create an Human Resource department. Bettering such actions would result in a better department. The consideration of Human Resource outsourcing firms would entail the work of outsourced specialists to create solutions for any human resource related issue the company is facing. What many companies fear about outsourcing, is that it is just too expensive and that it would be better to just solve issues with in-house capabilities. But what people fail to realize is that human resource outsourcing firms actually create cost effective solutions that are substantial to achieving contracting firm’s long-term and short-term goals. You can probably consider it as an expense to limit further expenses because the said issues I have mentioned can actually cause a domino effect of potential problems that can be costly for a company. Companies can rely on such outsourcing firms because they provide a pool of talented and skilled professionals who are ready to provide the best services for their clientele, after all, the more clients they have and the more content clients they have are their selling points.