Hiring An In House HR Manager Or Outsourcing HR?

When a business is launched the owner usually handles the hiring and HR tasks but, as the business grows, the entrepreneur has to focus more on managing the business and less on other tasks. Every business starts with a few employees and, if it is successful, it grows to have departments, departments’ managers and a management team that focuses on making the business successful and creating a business environment where people can show their talents and develop their skills.

If the business is strong and stable, some responsibilities can be outsourced. The trick here is to choose what can be outsourced and what should stay in-house. When it comes to HR, the management team and the business owner need to decide if hiring a HR manager is better than outsourcing all human resources responsibilities. Before deciding which option is better for the company, you should make a list of advantages and disadvantage of both alternatives. We made a list, but each company has its needs so make sure you add or remove points from the lists to adapt them to fit your company’s necessities.

The Advantages And Disadvantages Of Hiring An HR Manager

Advantages Of Hiring An HR Manager:

  • Having a person that really understands your employment needs;
  • Being able to communicate about the company’s needs with the HR Manager whenever and wherever you want;
  • Being involved in the recruitment process from the very beginning;
  • Being able to monitor all the HR tasks;
  • Having more trust in the HR process;
  • Being sure the HR Manager interviews the candidates that are suited for the job;
  • In-house training for new employees;
  • Establishing a benefits system that will make people be more productive and efficient.
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Disadvantages Of Hiring An HR Manager:

  • The process of finding the best HR Manager for the company can be hard;
  • Investing in trainings to be sure the HR Manager understands the company’s needs;
  • More time spent being involved in the recruitment process;
  • Being too involved in the HR tasks and not making objective decisions.

The Advantages And Disadvantages Of Outsourcing HR

Advantages Of Outsourcing HR:

  • Having more time to focus on other tasks;
  • Being sure the candidates were chosen in an objective manner;
  • Interviewing only the candidates that were able to exceed at the first recruitment steps;
  • Saving money on payroll experts (if you run a large company);
  • Saving money on internal trainings.

Disadvantages Of Outsourcing HR

  • Not being able to monitor the entire recruitment process;
  • Not being able to monitor the HR activities, in general;
  • Sometimes an HR firm cannot truly understand the company’s culture and needs.

As we mentioned, based on your company’s needs, you should add or remove advantages and disadvantages from the lists we’ve made. Before deciding which option is better for you, you should also consider how many people you need to employ per year. If you need to hire a lot of people, you definitely need an HR Manager to create a recruitment strategy and to make sure all the new employees will work well with your old employees. If you only need to hire an expert for a responsibility that you are not very familiar with, outsourcing HR may be a better option. Keep an open mind and make sure you consider all your needs before deciding between these two alternatives.

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