Similarly, With The Use Of Hr Outsourcing, Companies Increase

1200 WordsApr 27, 20175 Pages
Similarly, with the use of HR outsourcing, companies increase the likelihood of information leak that pose a major threat to the organization. The process of HR outsourcing and function may lead to loss of sensitive information that is vital to the company. Companies needs to closely guard their sensitive information to sustain their competitive advantage. The essence of outsourcing entails provision of better and quality services (RAFTER, 2016). To achieve this approach requires companies to share their information to the outsourcing HR function putting the company at risk. The level of information leak is uncontrollable as the outsourced employees are not accountable to the contracting organization. Also, HR outsourcing increases the…show more content…
This is challenging to a company future plans and existence. The profound result of how HR outsourcing affects in an organization serves as a two-edged – double sword. That is to imply that, the employees can be highly challenged to do their best in the organizational performances or become highly demoralized to execute their roles and responsibilities. The HR outsourcing practices impact on challenging the employees as they feel charged to do better than the currently are doing to improve their performance than the outsourced employees (Ketter, 2007). For the permanent employees, it is not good to show the management that an external employee can do better than a permanent employee. In turn, one may risk losing their job to the outsourced employee, hence, feels challenged to do the best they can to outdo the outsourced employee. On the contrary, an employee can also be bound to feel demoralized by the organization 's HR outsourcing. The disturbing questions and concerns follow whether the organization doesn 't feel satisfied with the performance of the permanent employees of what? Also, employees end up filling like the organization is not appreciative of the work, thus, outsourcing for human resources (Worried Workers Worldwide, 2007). The demoralization of employees’ impact in the sense that employees doubt their performance, hence, fail to believe in themselves and their

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