The Downsides of Outsourcing Alternatives

Trion Solutions specializes in HR outsourcing, but this is by no means the only option for supplementing your HR department and tackling HR needs. Many people ask us why they should consider HR outsourcing when traditional temp agencies have supported companies for years. While traditional temp agencies do provide similar services to HR outsourcing, there are many downsides that people do not consider.

In this blog post, we’re going to address some of the weak points of temp agencies that HR outsourcing avoids.

  • Higher costs. Temp agencies are fairly expensive. Temp employees will need to be paid roughly 15 or 20% more than ordinary employees. Additionally, if you seek to hire a temp employee, you will usually need to pay extra to offset the cost of them breaking a contract with the temp agency.
  • Risking morale. Temp staffing can challenge office morale in a number of ways. First, temporary employees may harbor resentment when contemplating how they are doing the same job as other employees but without any of the same benefits. Additionally, existing employees often see temps for what they are– temporary employees. This makes it difficult to engage in team-building, as long-term employees may not be motivated to care much about temporary employees who are quickly coming and going. Lastly, existing employees may see temps to be a threat to their job security.
  • Problem employees. Many companies also report difficulties with temps. One of the most common complaints is that temps are usually not as motivated as long-term employees. This is human nature– why would someone be as motivated at a job that they know is only short-term? It’s tougher to be invested in a company’s success when you know you will only be there for a short period of time. Many studies have shown that temp employees are generally less reliable. Additionally, companies rely upon the temp agency to properly screen temp employees. This can make a lot of companies uncomfortable, as they are unable to screen the employees themselves to determine if they are a good fit.

If you’d like to learn more about the pros and cons of temps versus HR outsourcing, then call or email us today to talk to our experts. We can walk you through the ins and outs of any HR difficulties and help you find the perfect solution for your business.

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