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Do you think outsourcing benefit administration is a fair practice for a company ?

Benefit Administration, Payroll Outsourcing, Compensation and Benefits

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Question added by Praveen Haridas , HR MANAGER ( CSR AUDITS ) , BUSINESS SERVICES AND MORE
Date Posted: 2016/10/21
Ahmed Hassan
by Ahmed Hassan , Accounts/Finance Manager , A Renowned Flooring Company

Outsourcing has its benifits to the company especially if its field of work consists of short term projects which does not justify the huge cost of hiring perminant employment, also it could be helpful if the company's having limits on their visa quota or in the middle of a labour office problems, immigration problems or any problems that hinders the company's ability of hiring, its also a great asset to the company to obtain a qualified outsourced employee for the sole purpose of training the current employees for a short period of time.

Rizwan Khalid
by Rizwan Khalid , Chief Accountant , Promedic Saudi Arabia

Thanks for asking the question Mr. Parveen. In my point of view outsourcing is neutral in its nature. Either its a fair practice or no, situation determines. I will mention few points to conclude the answer and try to make it easy to understand. 1. For short term projects, outsourcing is best as it save cost for company. Costs means end of service awards or graduity, annual vacations & medical and many more. 2. Outsourcing could be used as a threat for permanent employees as they know that if we will not show good performan so except internal recruiting for promotions company can outsource for higher positions. 2. On other hand, if company is already doing outsourcing then it de-motivates employees as they know that even they will hard work they never gonna promoted to higher position. So, we can see in all examples that outsourcing is an option available to all entities but either it is good or no this depends upon how company use that. I hope i answer your question.

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