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Outsourcing News: What Has Become of the HR Department?

What really has become of the human resource department of companies? Can you still find the usual physical, single place known as HR office where employees walk in to lodge a complaint, make enquirers or get assessment?

Right now, the trend has changed! Even where you find HR office, it’s no longer the spacious room it used to be. In fact, you won’t even find a HR unit at all in some organizations. Currently, the trend is for workers to contact some virtual HR manager if they need help, or consult a web portal. Even hiring and firing is accomplished virtually in some places. So, what really happened to the conventional HR unit?

HR Outsourcing has Substantially Taken Over!

Over the recent past decades, Human resource outsourcing has increased in popularity. And for the record, it’s not just human resource that companies are outsourcing increasingly, but also other functions such as administration, marketing, call center…in fact, most organizational functions.

“From all indication, HR outsourcing will continue to be on the rise; and, it’s not only HR that companies are outsourcing increasingly, but also other business functions”, said a research vice president at a renowned market research firm.

Indeed, Outsourcing is a Lifesaver to Companies!

Companies and businesses are taking advantage of outsourcing to offload tasks that consume time and take away attention from core business functions. Outsourcing is also a money saver. However, some human resource experts are of the opinion that the use of outsourcing in handling human resource is becoming excessive.

They are of the opinion that workers in organizations are the ones at the receiving end of the consequences, in terms of career development and training. In addition, these experts feel that employers are possibly losing very important business opportunities by outsourcing HR increasingly.

Outsourcing companies can handle variety of tasks, including payroll, which in turn frees up the clients to concentrate on the task they do best. According to the product management senior vice president at ADP, Don Weinstein, some reforms as well as legislation’s on HR are definitely going to impact employers massively, while the complexities of these reforms would completely overwhelm a good number of the employers. This is where human resource outsourcing firm steps in to take the burden off the shoulder of employers.

A word of caution though…

While outsourcing human resources and other tasks as a whole helps save time and cost for companies, experts advice that companies should not throw caution to the wind. In essence, they should critically look at tasks that are better handled in-house and retain them in the company.

Also, hiring outsourcing vendors should be done with high standard procedure, which is the only way to ensure a desirable outcome.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

2 Responses to “Outsourcing News: What Has Become of the HR Department?”

  1. I am very thankful to you as your article has given me lots of ideas. I enjoyed a lot by reading this post. Thanks for sharing your blog.

  2. Dennis Wong says:

    I really liked your blog post. Much thanks again. Really Cool. Thanks Daven Michaels

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