Concern #1: Loss of control
Something that many employers fear is the loss of control of their HR responsibilities when they choose to outsource part of their processes. The fact is that although you are moving a key business process to another provider, you are still in control and responsible for its success.
A good HR service provider will work closely with you, the employer, to ensure that you still oversee all of the HR decisions made for your company.
Outsourcing any process can be risky for your business, but often the risks can be outweighed by the benefits or minimised.
Concern #2: Mismatch of goals
Another concern of employers looking to outsource HR functions is that the provider will not share their goals or values. This, of course, is a risk, as it would be counterproductive if this was the case, however providing you research and vet the provider and that they get to know your company, this risk should be eliminated.
Concern #3: HR processes will be aligned with the providers’ processes
Sometimes change is good and sometimes it is not. Many employers consider the risk that their HR processes will be changed to align with those of the providers far too great. However providing you choose a good HR provider, this will not be a problem, as they will be aligning their service to meet your current processes, rather than the other way round!
Although many employers see a loss of control as a huge risk of outsourcing, providing you work with a good HR service provider, this should not be a problem.
Concern #4: Internal HR staff lose motivation
There is a risk that if your employees see that part of their processes are being outsourced to an external provider that they will feel less valued and less interested in their jobs. To prevent this from happening, it will be up to you, the employer, to ensure that you keep your HR staff motivated and that you facilitate good communication between them and the external provider. Although some of your HR functions will be managed elsewhere, it is likely that those working in-house will still be the first point of contact within your company if an HR problem arises.
Concern #5: Staff will not take well to the change
A lot of people do not like change. They get used to the way things are and if something is altered, they automatically take a disliking to it. Many employers worry that this will be the case if they decide to outsource part of their HR processes to an external company. In order to avoid upsetting or causing concern for your staff, it is best to keep them in the know. Explaining your reasons for outsourcing and the changes to them will make them feel valued.
You will also need to provide information on how the changes will affect them, such as who they will need to contact if they have an HR issue. This may take a little getting used to, but providing you handle it proactively and provide support for your staff, you should have little to worry about.
Like with any major change to a business’s processes, there are risks associated with outsourcing areas of HR function. However as long as you are aware of the common risks of outsourcing and have addressed them at the start of your relationship with the service provider, you should have little problem outsourcing all or part of your HR functions.