The Disadvantages of Outsourcing Your HR Team

Being the heart of the company, the HR team plays a huge role in maintaining and ensuring that the company stays working the right way at all times. They will handle a lot of complex day-to-day complexities. In our previous article we focused on the advantages of outsourcing your HR team, but in this article we will look at some of the disadvantages of outsourcing your HR team.

1 : Performance Problems


Since they are outsourced, you would not be able to be around them all the time. This might cause a bit of slacking and non-performance on their part since no one is literally breathing down their necks. In addition to that, it will be hard to see the actual work that is being done if all you are promised are reports. Reports can be easily generated but you would not be able to physically see the amount of work that has gone into making the report.


2 : Problem With Recruitment


Usually, when you outsource a team like HR, there might be problems like culture misfits since they are not part of your culture in the office. This might prove to be a problem if you are hiring. When you are hiring someone, they need to be not only be a job description match, but also a match culturally within your company. This way when they actually recruit people for your company, they might not hire the right person for the job. Eventually, this wrong hire will cost you a lot more money than you expected because if they quit or if there are behavioural problems, you will have to deal with that and hiring a new person anyway.


So in that sense, having an outsourced team will cause problems of that sort. The success of your company relies heavily on your team. If you have the wrong teammates, your company will fall.


3 : Information Risks


Thus the problem of shared servers. In an outsourcing company, you cannot be absolutely sure that you know exactly where your sensitive information is being stored. This way, you will be more susceptible to information leaks if anything happens to the server that was holding and keeping your information safe. For a department as sensitive as HR, this will prove to be a lot harder because the information that this team keeps would be extremely sensitive as it might have health reports or pay roll information. If not kept properly, it would prove detrimental if it got into the wrong hands.



To ensure that your team is safe and that you hire the right people, the best thing to do is to try to have your own team of HR executives. This is only the case if you have a much bigger team. Then it would be best to hire your own.


Also, to ensure that they are always on top of their game, please make sure that they have gone for all the necessary trainings required by the Malaysian government. One of the most important ones is the training for the MBRS system created by SSM earlier this year.


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