Assessed Essay: Human Resource Outsourcing

...

Time Saving

Kosnik et al (2006) claims that since the business main outsources non-core activities from vendor, so that the in-house staff is able to focus on their core activities. PEO saves one hour per day for employees to let them enjoy their free time and also helps them to main focus on customer not paper tasks. Nevertheless, PEO puts a bridge between small business and government, so that the risk rate could be decreased. If government bring so many tough issues to small business, the company would take much more time to deal with the government not the customers (Uhyadvisors, 2007). Small business survey report indicated that they spend more than 40% of their time on HR administration. (Cooke et al, 2005).

However, it can lead to negative impacts on in-house staff who might lose their feeling of belonging or morale. They are going to experience negative feelings or hate their job and ultimately effects in-house staff working efficiency. In addition, whether the vendor could save the time is still not known. Belcourt (2006) believes that lack of communication and incomplete tracking procedure would be spend more time to correct at the end. The result is unpredictable.

Conclusion

As previously stated, outsourcing will be an inevitable trend by this stage. The scale of human resource outsourcing are continued increasing which involved in more and more firms , and the pros of human resource outsourcing is over the cons(Belcourt, 2006). However, things are always two sides to everything. When business trying to clutch at straws, it came at a cost at the meantime. How to avoid the disadvantage of human resource outsourcing might be an essential project for all businesses especially small businesses to learn and to focus on.

References

- Belcourt, M. (2006). Outsourcing — The benefits and the risks. Human Resource Management Review, 16(2), pp.269-279.

- Berg, M. (2010).Calgary: Human Resources Outsourcing Virtual Solutions "Elevated HR". [video] Available at: https://www.youtube.com/watch?v=MbnkfdVdo5I [Accessed 6 May 2015].

- Cooke, F., Shen, J. and Mcbride, A. (2005). Outsourcing HR as a competitive strategy? A literature review and an assessment of implications. Human Resource Management, 44(4), pp.413-432.

- Goldman, R. (2007).Human Resources Outsourcing. [video] Available at: https://www.youtube.com/watch?v=V-A7og0r9qM [Accessed 6 May 2015].

- Kosnik, T., Wong-MingJi, D. and Hoover, K. (2006). Outsourcing vs insourcing in the human resource supply chain: a comparison of five generic models. Personnel Review, 35(6), pp.671-684