7 Reasons You Should Outsource Your Recruitment and 5 Reasons You Shouldn’t

With dynamic business conditions and global competition, acquiring new talent goes beyond a job interview. It requires significant time and financial investment to build relationships with suitable candidates.

What is Recruitment Process Outsourcing?

Recruitment Process Outsourcing (RPO) is gaining more traction across various entities. Some choose to outsource the entire process, while some outsource certain stages in the process. Although it’s a strategic business move, there are both advantages and disadvantages when companies outsource recruiting. Let’s look at both sides to help you make the best decision for your business interests.

Reasons Why You Should Outsource Recruitment

For outsourcing to make financial sense, companies should consider outsourcing on a project basis. It helps these companies to:

Reduce Costs

The hiring process is expensive. Recruiting costs involve labor, advertising, recruitment technology, application tracking systems, and screening costs. Internal hires seem more effortless but are more costly and limiting in the long run. Outsourcing cuts costs. Using a recruitment outsourcing agency combines all these costs into one lower price. The aim is to save time. It also reduces costs by streamlining the process and distributing the risks involved. There are minimal unnecessary hires, talent mismatches, and short staffing incidences.

Focus on Core Business

Even with dedicated HR personnel, recruitment volumes can be overwhelming. Hiring new team members diverts time and resources away from essential business processes. This can affect their productivity and ability to provide other essential services. Outsourcing recruitment tasks allows your team to focus on your business. This is achievable if you hire external partners such as a recruitment agency to post to online job boards and handle the recruiting strategies.

Improve Recruiting Effectiveness

The global job market is very competitive. Identifying and hiring qualified candidates who are actively job searching is often challenging if you’re looking in the wrong place or relying on ineffective hiring criteria. Outsourcing recruitment is a great way to improve the quality of hires. Recruiters can help you efficiently find the right candidates using updated recruiting technology. They also have access and the ability to reach more candidates to produce a stronger recruiting process.

Reduce Turnover Rate

High turnover rates can be costly in terms of time, money, and productivity. It can be through reduced productivity, poor customer service, and reduced employee engagement. Poor recruitment processes also increase turnover rates by hiring unsuitable candidates. To address such issues, you can opt to outsource recruitment to a recruiting firm that has experienced recruiters. They recruit talent and ensure you get vetted, better-qualified candidates who match roles and company culture.

Handle Rapid Growth

Companies with high growth rates, hard-to-fill positions, or seasonality often find it challenging to meet recruitment demands when using an in-house recruitment team. These fluctuations cause strain on existing staff. They eventually force companies to hire many people at once. Recruitment process outsourcing allows companies to balance labor demands without affecting business operations. External recruiters have more experience, dedicated staff, appropriate technology, and effective methods.

Gain Competitive Advantage

Start-ups and small companies often lack the resources on their in-house HR team to hire top talent in the industry. Recruitment firms help bridge this gap and provide recruiting support. They ensure smaller companies get the same skill level without overstretching finances in their recruiting process.

Build an Employment Brand

A company’s credibility as an employer comes from various aspects of the recruitment process. Having top candidates increases the possibility of other competent candidates considering your company. External recruitment firms help to project a positive image of the company to both candidates and stakeholders.

5 Reasons Why You Shouldn’t Outsource Your Recruitment

It’s Not Sustainable

Recruitment process outsourcing comes at an extra cost. It means paying the new staff about 20-30% of the annual salary in the first 90 days. These additional costs increase the return on investment (ROI) while decreasing the existing in-house team morale.

Outsourcing Recruiting Doesn’t Guarantee the Proper Fit

An internal hiring team has intimate knowledge of your company’s objectives, goals, and culture. They are more likely to hire a candidate who is a perfect fit for the role. External recruiters and recruitment agencies may focus on hiring a new candidate fast, neglecting other core values required by the position. They are expensive and have limited effectiveness.

Outsourcing Recruiting Leads to Missed Learning Opportunities

When companies hire freelancers or external hiring firms, your team has no chance to get feedback and analyze valuable data. Having your hiring managers and team monitor the hiring process, it gives you insight into why top candidates drop off and why. This data plays a significant role in identifying your weak points and changing or improving the process. The missed learning opportunities can affect your business processes and brand image.

Core Values and Company Culture May Not Be Well Portrayed

External recruiting firms lack a complete perspective of your company. They are often unqualified to assess candidates based on your internal culture since they are also unaware. Additionally, it may cost you top talent if the hiring team inadequately conveys your company’s core values and business goals.

Security Concerns

When using an outsourcing company, there’s a plausible data security risk. Lack of confidentiality can expose your company to security breaches. The third party has details of particular business processes, cultures, and nuances, which poses a threat.

Outsourcing Recruitment Conclusion

Outsourcing your recruitment has both merits and demerits. The ultimate decision depends on your specific needs and financial capability.

Your Ideal Project-Based RPO Company

JCSI helps you find quality candidates at 60-80% lower cost savings per hire. Allowing you to hire the best fit for the job, not just the best available through job postings.

For over 20 years, JCSI has been a leader in the recruitment industry with particular success in attracting passive candidates to our clients’ opportunities.

Contact the JCSI team today to discover how our RPO recruitment services can take the headache out of making the perfect hire!