5 Considerations Before You Outsource Recruitment
To outsource or not to outsource, that is the question… And there are a lot of things to consider before you make your final choice! Maybe you’re looking to save money by outsourcing, but you don’t want to lose any quality. Nearly 2/3 of all companies outsource some or all of their recruiting services, but is it right for you? We’ve put together a helpful list of 5 things you have to consider before you decide to outsource.
How Much Will it Cost?
Nearly all businesses, from startups to major corporations, are out to save money. In that case, the number one thing to consider when it comes to outsourcing is cost. Outsourcing can definitely be a potential cost-saving strategy as direct costs, labor costs and office maintenance costs are all reduced. You’ve got less people in your office to worry about, and increased flexibility for future projects that may require more or less staff.
Tweet This: Have you considered these 5 things before investing in outsourced recruitment?
However, the cost of outsourcing really depends on what services you need. Do you want the staffing service to be deeply involved and engaged with your company? That’s going to drive up the cost. However, even if the price point is a little higher, the end result will make it worthwhile. For example, in a recent survey, 80% of respondents found they frequently have trouble recruiting skilled cybersecurity professionals due to lack of knowledge in the industry (40%) and lack of resources (18%). Recruiting in an industry your HR department is not equipped to do? Then, you can’t even put a price on outsourced recruitment services!
Tweet This: Recruiting in an industry your HR dept. is not knowledgeable about? Read more:
Try This: Segment the roles you’re recruiting for into marketing, admin, IT, sales, etc. and pinpoint where help is needed most. Consider outsourcing recruitment for those hard-to-recruit-in fields so you can get the most bang for your buck!
Quality of Service
Your business depends on quality, and not all staffing services are made equal. You have to do your research to find the best staffing service out there. A good staffing service also contributes to cost – you don’t want the lowest-cost service out there, you want the highest quality.
According to a 2015 Candidate Behavior Study, 73% of hiring managers said hiring a bad candidate was more expensive than keeping the position open. With a quality staffing service, you don’t have to worry about a bad hire or leaving the position open for too long.
Tweet This: 73% of hiring managers said a bad candidate is more expensive than keeping a position open. Do this:
Try This: Set aside time to speak with executives about outsourcing recruitment or outsourcing processes of the recruitment. Gather facts and data to support your case and come prepared with examples of a few vendors in mind.
Are you a Type-A Control Freak? If you want to outsource, you’re going to have to learn to let some things go. You won’t be hand-picking all your candidates anymore. If you can’t let that go, maybe outsourcing isn’t the right move for you. On the other hand, other things will be more in control. You’re able to put just the right amount of staff on any particular project, be it one person or 10. Plus, 53% of hiring managers said an inability to find qualified talent was the main reason it takes so long to fill open positions. Are you willing to lose some control in order to lose some stress?
Try This: Evaluate how much time you generally spend recruiting candidates yourself and how long your positions remain open. If your time-to-hire is way above the average industry rate you’re recruiting for, outsourcing might be for you!
How complex is your company culture? How unique is your product/service? The more complexity, the longer it might take for a talent service to find candidates who fit your style. Company culture and employee fit is essential. Take for example, Sears, a store that increased employee happiness also showed a 5% increase in revenue. Although it may take a little extra time, a great talent service will be able to find the right candidate for your company.
Try This: Create a list of values and traits that are most important to your business. Have the list ready when talking to potential talent agencies and see how they accommodate your needs.
You always want to have a leg up on the competition. Is outsourcing going to help or hinder your competitive edge? It depends. If you’ve got a small company or a startup, you aren’t going to have the same resources as a larger company.Outsourcing recruitment can bring in resources to help you compete with larger companies when it comes to talent acquisition.
According to LinkedIn, 87% of businesses said their hiring difficulties stem from a lack of skilled recruiting staff. Outsourcing to a hiring agency would ensure that won’t be a problem for you. Plus, a huge benefit from outsourcing recruitment is an outside perspective. You can only see what’s inside your own walls, but an experienced staffing agency has your perspective- along with all the other companies they’ve worked with!
Try This: Get some intelligence on the competition. Use it to analyze employment trends, and forecast economic conditions. If you don’t know how, there are plenty of agencies to help you gather intel on your competitors.
If outsourcing the recruitment process or parts of the recruitment process seems right for you, find out how Vector Talent can help!
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