Human resource (HR) department is the backbone of every organisation as it holds integral role such as in recruiting and managing the workforce. HR department will also measure how your business thrive in the future. Given its significance to support a business, even newly-built company such as startup with less than 10 employees needs to hire HR leader in their organisation. As the business flourishes, so does your HR department. However, if you are on a tight budget, you need to think twice about bringing new hires to the HR team. In this case, outsourcing some HR functions can be a good option.
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Nonetheless, before you decide between those two options, you should know there are three factors that should be taken into account: the cost to minimise company budget, expertise for a flexible training, and flexibility to always find the best candidates for certain position worldwide. Given that different business has different needs to be completed and roles to be filled, here are some insights on how in-house and outsourcing human resources department can benefit your company.
In-house
Having in-house HR employees is very beneficial for your business as you can have control over HR primary tasks such as employee hiring, training and development, as well as retention. Here are the advantages and disadvantages of in-house HR team.
Advantages
Disadvantages
Outsourcing
Outsourced HR team is when you rely on an outsourcing provider to manage your company’s personnel functions such as health benefits plans, retirement plans, training, hiring, and any legal expertise. Small companies opt to choose this option as it is more cost-efficient. Here are the advantages and disadvantages of this employment type.
Advantages
Disadvantages
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