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Rising Cost Of Labor

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Rising Cost of Labor
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Rising Cost of Labor
Pros of Outsourcing and Contracting
Fundamentally, outsourcing is a significant practice that entails contracting various
processes and functions to third-party providers. Outsourcing and contracting are essential
labor practices for Human Resources (Patel, 2017). Firstly, outsourcing and contracting are
significant, particularly to the HR department, because they allow an extensive talent pool.
Hiring workers exposes organizations to a limited number of people; however, outsourcing
expands an organizational search for specialized help, enabling it to remain profitable.
Secondly, outsourcing reduces labor costs, and this is an essential strategy that HR uses to
ensure the firm financial performance remains unthreatened (Patel, 2017). For human resources
personnel, outsourcing gives them the best of both worlds, thereby helping an organization to
cuts costs, provide quality and consumer value.
Besides ensuring that costs within the HR department are controlled, outsourcing is
essential as it enhances efficiency. Notably, selecting a third-party provider specializing in
specific services or processes a firm wants to achieve can help human resource personnel
achieve efficient and more productive services that are often of high quality (Zhang, Yingying
& Jiang, 2021). Finally, outsourcing helps businesses to focus on their core business practices
and activities as the human resource management will have more free time to restructure and
organize the workplace to attain an enhanced competitive advantage.
Cons
Despite its benefits, outsourcing is a practice associated with different drawbacks. To a
large significance, outsourcing can cause issues with service delivery that might lag below
expectation or the expected timeframe (Zhang, Yingying & Jiang, 2021). From the human
resources perspective, outsourcing can be a threat to sensitive data. Human resources, in most

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1 Rising Cost of Labor Name Institution Course Professor Date 2 Rising Cost of Labor Pros of Outsourcing and Contracting Fundamentally, outsourcing is a significant practice that entails contracting various processes and functions to third-party providers. Outsourcing and contracting are essential labor practices for Human Resources (Patel, 2017). Firstly, outsourcing and contracting are significant, particularly to the HR department, because they allow an extensive talent pool. Hiring workers exposes organizations to a limited number of people; however, outsourcing expands an organizational search for specialized help, enabling it to remain profitable. Secondly, outsourcing reduces labor costs, and this is an essential strategy that HR uses to ensure the firm financial performance remains unthreatened (Patel, 2017). For human resources personnel, outsourcing gives them the best of both worlds, thereby helping an organization to cuts costs, provide quality and consumer value. Besides ensuring that costs within the HR department are controlled, outsourcing is essential as it enhances efficiency. Notably, selecting a third-party provider specializing in specific services or proc ...
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