Benefits of Recruitment Outsourcing
It has been said that the key to being successful in business is to surround yourself with the right people. However, finding (and hiring) the right people is one of the most significant challenges facing businesses today. Although technological improvements have made it easier for job seekers to browse available positions, engaging with and recruiting the top applicants has become an even more difficult endeavor. That is one of the reasons why recruitment process outsourcing (RPO) companies have grown in popularity. Recruitment outsourcing providers manage one or all components of an organization’s hiring process as an extension of the employer’s internal human resources department.
What is Recruitment Outsourcing?
Outsourcing recruitment entails entrusting your recruitment process or a specific recruiting duty to a third party. You might engage a recruitment agency or a freelance recruiter based on your needs.
What Are the Benefits of Outsourcing Recruitment?
You should consider recruitment outsourcing if you’re having difficulty filling a specific function, you have several vacancies and no time, or you simply cannot afford to hire an in-house recruitment team. Getting some outside assistance will help you get the job done, whatever it is.
Let’s look at how outsourcing recruitment tasks might assist your business.
When Hiring Abroad, You Can Benefit From Recruiters’ Experience and Local Knowledge.
So you’ve decided to hire overseas, but don’t know where to begin? The most significant obstacle is gaining international hiring experience and knowledge, which many businesses lack. Fortunately, you can overcome these obstacles by working with an external partner who possesses this knowledge and experience.
What areas should you begin exploring in, and which methods should you employ? Is there any legislation in place regarding employment in another country? These are just a few (of many) questions where a recruiter’s experience might be extremely beneficial.
Piret Ploom, Yolo Group’s Head of People & Culture, explains: When we started a new firm in Kyiv, Ukraine, we also incorporated some external organizations to assist us. They’re familiar with local talent, as well as local employment boards. As a result, it’s more cost-effective, saves us time, and allows us to attract the right people much faster than if we did everything ourselves.
Recruiters can also supply salary information for the area and may be aware of what your competitors are offering. With this knowledge, they can assist you in developing an offer that both you and the prospect will be pleased with.
You Could Save Money
External recruiters will only assist you if there is a necessity. When compared to a full-time, in-house staff, this can save you a lot of money. Additional recruitment expenses could include marketing, online job boards, equipment, and software. The expenses can snowball. Paying your external partner is the only expense you need to be concerned about when you outsource.
Although it is not the only key benefit, cost savings are often the driving force behind any form of outsourcing decision (70% of the time, according to Deloitte).
As a general rule, outsourcing saves money. Every rule, however, has an exception. If you’re continuously hiring and have a significant number of roles to fill, hiring an in-house recruiter may make more sense. When you have difficult-to-fill roles, you can bring in outside help to support your in-house recruiter.
Aside from savings, you now have greater payment flexibility. In the recruitment market, there are various price models. Pay per hire, pay for time, and pay for milestones are the three basic alternatives.
You Could Save Time
Hiring can consume a significant amount of your time. Writing the job description, advertising, sourcing, screening, and interviews all take time. You save time by delegating this time-consuming activity (or parts of it) to an expert individual or agency. When you know a professional is handling these chores, you can relax and devote your attention to other aspects of your organization. You can save a lot of time where you don’t have expertise (for example, sourcing) while still participating in interviews where your perspective is valuable.
You get the best of both worlds: control over the process and time savings.
This is also very beneficial to your in-house HR. They may be swamped with other responsibilities and lack the time to devote to recruiting. By allowing them to delegate some of their work, you are assisting them in being more efficient in their job.
You’ll Have Access to Applicants Who Might Not Have Applied to Your Job Ad Otherwise
Job boards and classified ads work well for some positions. But, let’s be honest. If you’re looking for unique skills, you might not find them here. There is a good chance that CEOs and top personnel are not actively looking for work. According to LinkedIn, 70% of the worldwide workforce is made up of passive candidates who are not actively looking for work.
Enter talent scouts. Recruiters offer valuable experience and, in many cases, a wide network. They can locate and persuade passive people to join your team by using these benefits.
You’ll Be Able to Identify the Ideal Candidate for Specialized Roles.
Filling a highly specialized position like tech might be difficult. Finding the proper person for these tasks necessitates the assistance of an expert on the other side of the table. Someone with extensive knowledge of the type of individual who will flourish in the role and experience recruiting for similar positions.
Executives and even in-house HR managers cannot be expected to be experts in every function. Recruitment firms and freelancers, on the other hand, specialize in a specific field (e.g., technology) or function (e.g. recruiting developers). This strategy transforms them into specialty experts, allowing them to attain higher success rates.
Extra tip: External assistance is especially beneficial when it is a completely new role for your organization or your first time hiring for that type of position.
You Can Speed Up Recruitment.
The average time to hire, according to LinkedIn, is more than 30 days. The average for some industries, such as engineering, is 49 days.
But what if your company is rapidly expanding and you require personnel quickly? First and foremost, congratulations!
Assume you need 20 new employees to join your company. In this instance, the expertise and efficiency of professional recruiters can be useful. Recruiting dozens of people without outside assistance could take a long time.
When you need to fill a lot of positions quickly, outsourcing recruiting may be your best (and often only) option.
Everyone Can Concentrate on Their Strengths.
Last but not least, hiring an external recruiter ensures that applicants are in good hands and will be well-cared for. This allows you and everyone else in the company to focus on what you do best. That’s quite efficient! This is the most crucial benefit, according to Brainbase.
According to Sirli Spelman, People & Culture Manager at Brainbase
I believe the most significant benefit for us (a company without an internal recruiter) has been the ability to trust that recruitment efforts are being handled professionally and that candidates are in excellent hands. On the one hand, we know that applicants receive the finest candidate experience possible: they are kept informed in a timely manner, they are approached with a personal touch, and they are made to feel significant. Our hiring managers, on the other hand, are supported throughout the recruitment process. It allows us to focus on what we do best while allowing our recruitment partner to perform what they do best.
When Not to Outsource Recruitment
Is it always best to outsource? Obviously not. Different scenarios will necessitate different types of recruiters.
If your company has been continuously developing for a long time and has several roles to fill each month, you’ll most likely wind up hiring a full-time in-house recruiter at some point.
Furthermore, if you want complete control over your employer branding, outsourcing may not be the best option. The candidate’s first impression will be formed through contact with the recruiter rather than with your organization directly. Many firms, on the other hand, use freelancers as “embedded recruiters” – contractors who work as an extension of the in-house team, using company tools and processes.