Advantages and disadvantages of HR outsourcing services

Human resources outsourcing is a service used in the labor market in many countries but in Vietnam, this service is still quite new. So what are the advantages of outsourcing human resources? What are its limitations?

In this article, Farovietnam will answer in detail the above questions about HR outsourcing services for businesses.

Why is HR outsourcing service popular in developed countries?

In the fiercely competitive economics, enterprises have to struggle to find the right direction to both save maximum costs and ensure quality and work productivity, which has required them to find an effective solution, like HR outsourcing.

Human resource outsourcing services are chosen by many businesses so that businesses can  focus on core business activities and promote the support activities while leaving risks to outsourcing experts.

Moreover, human resource outsourcing services also make countless benefits to businesses such as ensuring work performance and optimal costs.

Advantages of HR outsourcing services

It is no coincidence that HR outsourcing services are applied by businesses in developed countries with many benefits, such as:

- Saving costs because this service is often cheaper than building your own HR department. Moreover, an official staff also requires business additional expenses for social insurance and health insurance.
- Building a complete human resources team in an enterprise will require a full range of factors such as facility, equipment, etc., while with outsourcing personnel, businesses only need to invest in a part of the facilities.
- Leaving dates like sick leave and maternity leave can cause non-continuous work when the outsourcing service can ensure the work without interruption.

Clearly, using external personnel will help businesses save a lot of time while still ensuring the quality of work transfer results.

Some limitations of HR outsourcing services

Besides the benefits, HR outsourcing services have some limitations such as:

- Outsourcing human resources will lack ties to the business, especially in cases the passive and dependent on these human resources.
- During the peak period, the business will be attracted personnel by competitors causing low productivity.
- Poor work performance of outsourcing companies greatly affects the reputation of the business.
- The period of handing over work may be close to the deadline of the business, which can cause no time for editing in case business is not satisfying. That would be risky.
- Outsourcing personnel can save costs, but in the case of not suitable providers, it can have a severse impact on the work producitity and cost. In fact, businesses devote a large amount of money but hire the weak human resources will cause negatively losses. Therefore, businesses have to consider the right HR outsourcing company to gain the best experiences.

Above are the advantages and the disadvantages of HR outsourcing services. If businesses are interested in this service or need to find the hr outsourcing agencies, please contact Farovietnam's hotline!