HR Out Sourcing for SME's: A Harmful Act.
It was Saturday,10th March 2012, I happened to attend the seminar organised by Head Start Network -a non profit organisation called Saturday Start Up.
T.V. Rao( Father of Indian HRD) was there as chief speaker to share his life long learning of HRD to young budding entrepreneurs. He told all the participant' if you are starting entrepreneur then dont hire HR, as line manager you have to have HRD skills in you for growth of the organisation. People's skill is one of the catalyst for growth of the enterprise. He have to have prepared the first set of people to work with him for longer time and unless and until entrepreneurs doesn't develops these skills the dream may not come into picture. At that time I was not agreed with his opinion but over time I realized the important of his thoughts.
Out side person would act like medicine not a as Vaccine. He will only prescribed remedies for the current issues and will not look into the root causes of the consequences, Outsiders will always have their own agendas he will not assimilate with your dreams and vision and he will pretend to behave like insider. For start ups its not desirable tool, for mid size and well established cos it is recommended to go for HR out sourcing i.e. only to strengthen your people function with internal dedicated person not to established your HR function from an eternal person. He may not understand the foundation of the organisation. HRM is difficult subject and required some special integrated skills and most of the times it fails that why in most of the organisation is remain as Personnel function not HRD function. Consultant will always professionally treat you as client.... that's It.... He will Never live with your dreams .............. Never.....
Regards
Amol.
2 comments:
nice article
Nice views Amol.
However its very difficult for a startup company or an entrepreneur to start HR department at the time of inception of a company. Its due to financial constraints mostly. Thats the reason SMEs tend to outsource their HR activities.
In terms of value of financial returns from inhouse HR department is considered very low if you look at the investments to set up inhouse HR department.
My views are ;you can outsource HR activities at the initial stage and simultaneous try to set up it inhouse.
Thanks
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