Why HR outsourcing is the new mantra in big organisations?
Outsourcing human resources activities has become a new mantra in big organisations since some companies believe that some of their responsibilities are better off when managed by outside vendors. There are quite a number of HR activities that can be outsourced to an outside HR consulting firm such as recruitments and selection of new employees as well as implementation of other programs designed to improve the welfare of the employees. For instance, globalisation has significantly impacted on the operations of many large organisations since they draw a large portion of their workforce from other countries. The United Arab Emirates (UAE) for instance is viewed as a multicultural region attracting thousands of employees in different companies from various parts of the globe. Therefore, HR functions like recruitment of new employees are better left in the hands of outside consulting firms that are believed to be efficient in selecting the right candidates for different positions in large companies.
This can significantly lower the costs involved in the recruitment exercise by the company since outsourced services are relatively cheaper. The other benefit of outsourcing HR services like recruitment is that the company stands better chances of attracting talented and experienced people to join its workforce. Outside recruitment agencies use strategies such as headhunting when looking for new employees to join the company. Usually, these agencies have a pool of qualified candidates in their databases which helps them to identify the potential employees with the right qualities for the job. The other benefit of outsourcing is that the company is given the opportunity to concentrate on its core business while external HR consulting firms perform tasks that may be costly and time consuming to the organisation.