HR management has been the talk of the town in recent times with the advent new corporate structure and advanced reforms that have taken place in the global economy and industry segments. Previously, companies used to keep the involvement of HR segment to minimum in the business process and its budget allocation was also limited. This is due to the fact that HR is not a direct profit yielding segment. But now the thought process has changed. Companies have understood the importance of HR and its direct involvement in attaining the strategic business goals in the long and short term. With this understanding another aspect of HR management has risen, which is partnering with an HR agency for management of this business segment. With this trend, it is also essential to understand the advantages and down sides of this partnership. Hence both sides of it are as follows: –
- The HR process has many aspects to it which includes workforce management, payroll management, time sheet maintenance, HR policies, organizational structuring, performance management and such like. This required experienced resources who can not only manage these systems but also from time to time make necessary amendments and changes according to current industry trends and reforms. This can be effectively done by a HR agency. They are the industry experts who are well versed with the such restructuring and processes.
- Secondly, in order to manage this process, a company requires additional resources in certain specialty segment as well. Hiring such resources and maintaining a set up similar to that adds to the capital cost of the company. But if a HR agency is given this responsibility then it reduces the overall operational costs of the company.
- The recruitment process can be benefitted with this approach. Usually, these agencies have access to a sizable section of candidate database which can be effective towards the hiring process. They also have certain profiles which might not be available in public domain or through regular sources. This approach is especially helpful towards recruitment in the niche segments and technical aspects. This will eventually boost productivity and workforce performance.
- Outsourcing of the HR process to a third party service provider means that the company will have to share all the corporate information with the agency. This might include certain confidential information as well. If due to certain reason these type of information is breached, it might result in loss of credibility and market position.
- If a HR agency is taken in to consideration, then the company needs to pass the entire control of the HR process to the agency. This might result in losing out on control of the business process within the organization. It might harm the managerial and productivity aspects to some extent.
- Lastly, the company needs to reply on the candidates short listed for the recruitment drive by such an agency. It might happen that the quality of the candidate list might not be up to the mark for recruitment.
Therefore, the organizations should consider both the aspects before partnering with such an agency.