Question

How might the HR function be affected by outsourcing decisions in small- and medium-sized organizations? What roles can and should HR play in such decisions?

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Answer 1

Generally, outsourcing plays an important role in the larger organization because they have the ability to afford the luxury. In a small or medium company, the decision of outsourcing the HR function may impact positively because the fixed cost used on employees is reduced. The company gets the ability to hire new employees efficiently and quickly. When the cost is reduced the good quality perks like insurance, Health Insurance, retirement plans, etc could be given to them. These perks may be better than larger companies because of the number of employees. But the negative part is that employees' communication will be affected because they would not have that presence there.

The HR personnel should play a strategic partner role in the organization for outsourcing HR functions in the organization. If the company wants efficiency in the HR department then the human resources will ask for more attention along with it showing how they are integral parts of the organization. HR role should be focusing on communicating their strategic place to the upper management along with partnership function within the company. They should make sure that the decision of this magnitude is not happening without taking their input and considerations