The Value of Recruitment OutsourcingMarch 23, 2017 No Comments
Featured article by Robert Cordray, Independent Technology Author
Whether you’re growing a business or just trying to replace workers who have left the company for one reason or another, it’s crucial to bring on the right people. Unfortunately, doing so can cost a company quite a bit in time and resources—two things that aren’t always readily available.
To ease the burden, many companies are turning to third-party recruitment firms, which specialize in onboarding new employees for companies. These businesses perform several functions, both seeking qualified candidates and helping companies to permanently improve their recruiting processes. A recruitment outsourcing firm does detailed research on candidates, trains company hiring managers on how to improve their recruitment practices, makes sure that the company is complying with all regulations, and more.
Replacing an employee is an expensive undertaking. According to one study, to replace an employee whose salary is between $30,000 and $50,000 each year, most companies would end up spending approximately 20 percent of that employee’s annual salary. Those numbers rapidly increase for higher-paying positions; an employee making somewhere between $100,000 and $213,000 each year could cost as much as 213 percent of their average salary.
By hiring a recruitment process outsourcing firm, companies can diffuse some of the costs associated with hiring new employees. Recruitment firms work with company executives to help streamline the process so that it moves more quickly and costs less time and money. These firms specialize in recruitment, and they have honed the process to make it as efficient as possible.
Positions Get Filled More Quickly
When a company is short an employee, particularly in a key role, it can have a damaging effect on the company’s health the longer the position goes unfilled. About one in four CEOs report missing opportunities and canceling strategies due to a shortage of qualified workers; meanwhile, one out of three expect that such openings can negatively affect their ability to innovate.
Recruitment outsourcing specialists and firms have tested and refined their recruitment and research tactics. They are able to fill roles much more quickly than a standard company’s HR department posting openings in the newspaper or online.Meanwhile, those HR departments are free to work on other things.
Because recruitment outsourcing organizations have focused their talents on finding the right fit, new employees are less likely to leave. After all, what’s worse than having to pay upwards of 20 percent to fill an opening? Having to pay for it twice.
Recruitment firms vet their candidates before they are brought to you. That means that companies who have decided to work with a recruitment firm tend to end up with higher quality candidates who are likely to be a better match for the position and for the company’s culture. This, in turn, leads to new hires staying on longer, which means the company isn’t forced to pay the cost of recruiting a replacement over and over again.
Easier Compliance with Regulations
With so many regulations about hiring practices, licensing, and the like, companies have to be careful that they don’t accidentally break any of those rules. If they do, the organization could wind up in serious trouble.
Outsourcing several aspects of the recruitment process, on the other hand, relieves the company of the burden of compliances and passes the responsibility to the recruitment firm. Because it is a large part of their core business, these firms are familiar with most government regulations and are able to make sure that the hiring process goes smoothly.
At times, organizations go through hiring bursts or declines, and their recruitment process needs to be able to grow or shrink as the situation merits. If your company is in a hiring boom and increasing in size, outsourcing a portion of your company’s recruiting work will free up internal resources and allow the internal recruitment and hiring teams to handle the rapid growth.
When the time comes to bring on new workers at your company, consider working with a recruitment outsourcing firm. It could save your organization a significant amount of time and money, and it can boost the likelihood that, once hired, the employee will stick around. In today’s hiring market, all of those factors can do a lot to help your company’s bottom line.