There are many reasons why outsourcing staffing is makes sense for companies than hiring in-house. The need to pay more attention to the core business, and to reduce the cost of hiring new (and talented) employees are the top reasons.
This article will help you understand why HRs and hiring managers prefer to outsource staffing more than doing it themselves.
Every recruiter knows that recruiting can be a costly affair. For example, you have to roll out adverts, perform background checks on potential candidates, track (and manage) applications, conduct multiple rounds of interviews, execute skill and personality assessments, onboard the candidates and so on.
Manpower and technology, both are involved in the hiring process. But if you outsource staffing, every aspect of hiring (and even payroll and compliance) can be handled by a third-party staffing consultant and the technology they possess.
One of the key HR metrics you should keep in mind is the cost-per-hire. It is always higher when recruiting in-house as opposed to recruiting via a third-party consultant. Furthermore, the time-to-hire also reduces when you have a staffing partner.
HR processes can be streamlined and your HR team can look into other pressing matters while your staffing consultant handles recruitment. For a company that is scaling up or has just started, outsourcing staffing tasks can save funds as you don’t have to build a full-fledged, in-house HR team.
A company usually dips into the talent market under three circumstances: there is a vacant role, expansion plans, or when seasonal demands have to be met. So, you could say that hiring is a process that is not central to how the company runs, but a process that is sometimes needed.
If you invest resources such as time and money into hiring in-house, you are taking away the same (valuable) resources from your core business. By outsourcing recruitment, you can limit the spend and pay more attention to your business needs.
Your company HR also has to handle many tasks besides the recruitment of new employees. Sometimes the hiring process can overwhelm your HR to a degree that they will have no time to focus on their other crucial responsibilities, such as framing employee policies and programs, managing employee payroll and benefits, and so on.
The chaos and erratic workflow faced by the HR will have a ripple effect on all other teams and departments eventually bringing down overall company productivity. However, by outsourcing this HR job, you free them so that they can carry out other responsibilities and refocus their attention on the core business.
In-house recruiting sometimes cannot compete in the talent markets to uncover the best candidates. There is also a shortage of skilled workers today. Moreover, you may not find job-ready talent in your location. This is why you need to outsource staffing.
Comparatively, staffing firms have much more control in the jobs market and a better understanding of the types of candidates who are a better fit for vacancies. With their help, you can find qualified and active candidates, or build a pipeline of passive talent.
Hiring a recruiter is also helpful when you are in urgent need of filling an open position. They are in the knowhow of candidates, those seeking a change or specific roles. With their help, you can quickly find the right employees without much hassle.
When a company has a high employee turnover rate, it leads to an interruption in productivity, inferior customer service, and very low engagement from employees. You can’t blame your staff ability to recruit or how much compensation you are giving.
Rather, it has something to do with the recruiting function. This is why you should outsource your recruiting process because you will get more qualified candidates who match your job roles.
Recruiters will thoroughly vet the candidates to make sure they fit perfectly in your company, thereby reducing high employee turnover and attrition.
If your business is in expansion mode or if you need seasonal employees from time to time, outsourcing the recruitment process is your best bet. No matter who does it, when recruitment is done in-house, it disturbs the inner workings of the company.
Your existing staff face longer working hours during the rapid growth phase, or when hiring seasonal employees. But if you outsource hiring, you don’t have to worry about overwhelming your existing staff.
Staffing companies can post jobs across several platforms, screen candidates, and find the right fit your company. Plus, they possess better recruitment techniques and technologies, which means you get better results and end up making sound hiring decisions.
If you are a small company or a start-up, you may not have the same resources as mid-sized companies or conglomerates. In other words, you are in a disadvantageous position as compared to bigger players, especially in the hiring landscape. But when you outsource staffing, you’re on a level playing field.
External recruiters have years of experience and expertise in finding great candidates; qualities that even some top HRs from top companies don’t possess. In simple terms, you have the upperhand when you tie up with a staffing agency.
The recruiters you turn to — when outsourcing hiring needs — will often offer services that go beyond just finding the right candidates. Take onboarding for instance, which is the process of integrating a new employee into an organisation, and an important one at that.
When you hire an external staffing agency recruiter, anything related to talent sourcing, hiring, onboarding, payroll, background screening, benefits administration, grievances, upskilling, and compliance management are taken care of.
As a result of transferring HR tasks, like the ones mentioned above, your employees’ productivity and business operations are prioritised. Moreover, you don’t have to worry about making errors, paying fines, or facing understaffing issues.
When you outsource staffing, you save on many fronts. From resources to manpower to productivity, everything works out in your favour when you work with an external staffing partner.
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