Outsourcing Human Resources

Essay by lettyhubertCollege, UndergraduateA+, June 2005

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The most important and productive resource of any organization is the Human Resource. Business heads today realize that employees are the core foundation and back-bone of their organization and it is imperative that you have suitable processes in place for their proper functioning and work satisfaction levels. Human Resources management involves a lot more then paying employees on time and trucking vacations days. But in the same time Human Resources is a department that does not produce revenue for the company, therefore in the last few years big and mid-sized companies decided to outsource their HR department.

After researching some of the articles and surfing the Internet, I have found very interesting articles about companies outsourcing. Human resources outsourcing is most common in organizations with 2,500 or more employees, where demand and resources allow human resources to provide a broad range of employee benefits. According to the Human Resources Department Management Report, top outsourced functions include employee assistance counseling, flexible spending account, administration, pre-retirement counseling, and outplacement services.

Some of the companies do it because they believe it cut the company cost. It also help companies and their employees to focus on the bottom line problems and live the outside companies to worry about that particular functions that is not so much related to the productivity and satisfying stock shareholders. But outsourcing is not so easy, when a company decided to outsource the Human Resources. If you find that there is an economic advantage to outsource for your company, you then need to investigate the level of customer service at different companies. Also the decision maker has to start from the top to the bottom of the company.

Everyone has to agree to do it and make sure that this will be the right decision and in the...