Pros and Cons of Outsource Staffing Services to India
Employees
are the biggest asset of a company. The process of hiring employees is called
staffing. Any size of business whether big or small is run by employees which
makes staffing one of the most important processes. A business has a
distinctive set of work processes that require people with knowledge and
experience of a specific domain. With the growth of the business you need to
expand your staff as well, this means it's a continuous process.
A large organization can arrange all the necessary resources essential for recruitment
but small or medium companies may struggle to manage the same. Outsourcing staffing services can
assist you with the required resources to manage to staff.
Outsourcing companies have a well-managed team
of HR managers and screening personnel who work to hire employees right from
searching for evaluating candidates. Some recruitment services also provide
training support to train the new hires as per your business model, this will
give you a fully prepared employee who can join and start working instantly.
Advantages
of outsourcing staffing services:
1. Hiring at a
great pace
Employees are a part of the working chain in
the organization. If an employee resigns from your business, it is important to
fill up that place as fast as possible, otherwise, it could disturb the whole
chain. Recruitment service works very fast as they are the pioneers of
the field and have essential resources ready. This helps you to recruit new
employees in no time without causing much disturbance in operational
activities.
If your
business is constantly growing and demands an additional workforce, you can
quickly hire employees with the help of outsourcing firm to support business
needs.
1. Cost-efficient
Establishing
your department of staffing is a costly affair. It involves extra cost for
advertising, screening, background check, training, recruiting resources, and
many other typical tasks. This can be hectic as well as expensive to spend
money and resources on each process.
Outsourcing
staffing services charge a one time fee and execute all the
aforesaid tasks. The amount charged by them is considerably low than what you
would spend on the self-hiring process. Even many big organizations rely on staffing
process outsourcing to save huge costs.
1. Increased
emphasis on the core process
Outsourcing
helps you to direct your time and resources on primary business activities such
as operations, customer service, manufacturing, etc.. This helps in maximizing
business growth and timely achievement of organizational goals.
Staffing
requires additional budget and resources, but with the help of outsourcing
staffing services, you shift those responsibilities to them. With the saved
cost and resources, you can improve core business facilities to increase
overall performance.
1. Flexible
workforce
The workload in business keeps on changing progressively, sometimes you may have a high load
of work and sometimes not. For such high traffic scenarios, you might need to
hire a workforce on a temporary basis to support the workload. Outsourcing
services can be very useful during such time, you can instantly get people who
can work on a contractual basis for a set period. When the workload reduces,
you can decrease your workforce, as temporary employees will not be your
responsibility once their contract period ends. You can also convert some
temporary workers to permanent as per your needs.
1. Professional
level employees
Recruitment services
take their work very seriously and follow a strict code of
conduct to adhere to the specific need of the client. They have a rigorous
screening process by which they thoroughly test the candidates as per the
required standard. This gives your business a highly professional and skilled
set of a workforce that will work seriously to achieve their targets.
The quality of employees directly affects your
business growth, therefore it is crucial to hire dedicated employees with a
good professional background.
Disadvantages
of outsourcing staffing services:
1. Finding the
right recruiter
The major drawback of outsourcing is to find the right outsourcing agency. There is high
competition among the outsourcing industry due to which it becomes difficult to
contract with a good outsourcing company. Since staffing is an essential
process therefore you cannot bear to make a wrong decision as it would slow
down the pace of your business growth. Moreover, a bad decision can also waste
your money, resources, and time.
1. High-security
risk
Outsourcing
staffing service can lead your business towards the high risk
of exposing business confidentiality. Outsourcing companies have much inside
data and information about your business. They can easily leak that data to any
third party outsider, maybe your competitor. This would result in a grave loss
for your business and might force you to modify your whole work chain.
Therefore, you will need to take extra precautions while outsourcing your
business.
1. Routine
inspection
While
outsourcing you entitle heavy responsibility to a third party. The third party
is not impacted by your business but your business can face huge impacts
because of them.
To ensure
standards, it is your responsibility to keep inspecting the quality of their
work. It becomes your duty to assure that hiring is being done as per your
guidelines. This creates an additional workload for you and demands to
establish a quality control team to monitor such activities.
1. Additional
cost
It is true
that staffing process outsourcing is cheap but it can also make you bear
additional costs and ultimately lead you towards loss. For instance, a newly
hired employee resigns from the job without prior notice, this will result in
your loss of money you paid on recruitment, plus additional cost for
hiring a new candidate to fill that vacancy.
Once the employee is hired, he/she totally becomes your sole responsibility as an outsourcing company is only entitled to hire candidates and nothing more.
1. Risking
time-bound opportunities
Time is the
most important factor to grab certain opportunities that can ensure rapid
business growth. By outsourcing
staffing services you risk those time-bound opportunities. If the recruiter
fails to provide the required workforce during demanding times, you will
ultimately miss that opportunity. Outsourcing firms have multiple clients and
they can easily miss the time frame of other clients in order to maximize their
profits with large scale businesses.
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