Wednesday, January 20, 2021
Home Human Resources In-House HR vs Outsourced HR: Which Option is Better?

In-House HR vs Outsourced HR: Which Option is Better?

A company’s human resources department is what helps bridge the gap between the company and the workforce. The HR department plays an important role in that for any company to realize its full potential, it must have a thriving workforce to carry out operations and to produce the results needed by the company and its clients.

There are two major decisions to weigh when it comes to choosing an HR team. You either hire an in-house HR team or your partner with a recruitment agency to outsource your HR department. Each option comes with its own set of pros and cons, and depending on the particular needs of your company, one one approach could suit your needs better than the other.

So, what are the characteristics of each HR type, and which one should you choose for your company?

In-House HR Team

An in-house HR team is one that works exclusively for your company. The primary benefit of having an in-house HR team is that you have control over how training, productivity, recruitment, and development are conducted. This also means that team briefings will be done in the office. You’ll have a team that you know, and a team whose engagement, communication, and alignment are synchronized with that of your own. Not only this, but you’re also guaranteed that your intellectual property is less likely to be infringed upon.

Outsourced HR Team

On the other hand, the primary benefit of opting for outsourced HR teams like GNA Partners is that it is cost-effective, time-efficient, and it also requires less monitoring and managing. This means that you’re going to be able to dedicate more resources toward other crucial endeavors such as marketing or production team management.

Another added benefit of outsourcing your HR team is that you have a greater wealth of professionals to choose from instead of a localized candidate pool, which means that you have a better chance of getting the best candidates for the role you need filled.

As you might also observe, the pros of each of these types of HR teams are also the cons of the other. The deciding factor then becomes what your company needs.

A startup is going to be better off with an outsourced team because of the cost-effectiveness and the diversity in candidates. Not only this, but startups need more leadership in order to grow, versus big businesses that already have a crystalized system. Big businesses stand to benefit more from an in-house team because they’re likely going to have a unique training program for their employees. The fact that bigger companies are also likely to have sought-after trade secrets means that they’re going to place an emphasis on privacy which, again, is one of the key advantages of having an in-house HR team.

This was never a question of which type of HR team is better, but rather, which of these is better for your needs. Each type of HR team has its own set of pros and cons. It’s up to you to determine what your business needs and what type of team you need.

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