When To Consider Outsourced Recruiting Services

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You have likely run into hiring challenges at some point in time or you may currently be facing these challenges. It’s likely that you struggle to find the talent you need and to make matters worse the talent you need is the very resource that drives your revenue. This article explains some of the common reason’s organizations turn to outsourced recruiting services as a solution.  So, how do you know when its time to consider using outsourced recruiting services?

The obvious answer is when you start facing challenges with your existing hiring team that you are unable to solve internally.

Many small to med-sized companies are in the start-up or growth phase. In today’s hiring environment, we often find that small to mid-sized companies lack three key components:

  • Resources
  • Capital
  • Time

Because of this, traditional recruiting methods might not make sense while in this phase. Contingency and retained searches can be costly. This is especially true for a growing company working to establish its processes, hire the right people and cultivate a positive culture. There is no doubt that all three factors are essential to a healthy business.

This is when outsourced recruiting services can serve as an excellent option. In short, recruitment process outsourcing (or RPO) involves using an outsourced recruiting agency and handing over the recruitment process to an external recruiting firm. Typically, when experiencing one or more of the issues below.

Common Reason to Consider Outsourced Recruiting Services:

  • Struggling to find candidates with the skills required for the position.
  • Application volume is high, but quality is low
  • No time properly screen or weed through resumes (much less conduct an insightful interview process)
  • You do not have an internal HR Manager or Recruiter, so you are juggling multiple high-priority responsibilities.
  • Budget constraints

Seasonal High Growth Recruiting

Companies who are experiencing high growth hiring needs such as adding a new department, encountering a seasonal hiring wave or taking on a new project. This is when an outsourced recruiting services can help your organization scale at the right pace. This type of service serves as a temporary solution to a temporary problem. Fast growing companies have a hard time keeping up with their recruiting and hiring needs. An outsourced recruiting firm can help these types of companies handle the fluctuations.

Need to Cut Costs

Companies outsource recruiting to reduce their costs, overhead, and reduce overall recruiting spend. Perhaps, the company has historically invested too much money on headhunters and recruiting fees. In doing so, you have only come to realize that the candidates were not the right fit. Outsourced recruiting is a unique approach that dedicates a recruiter on a fractional basis. The cost is calculated based on your hiring volume and is usually a flat monthly rate. If you are looking to reduce costs while guaranteeing ROI, outsourced recruiting is a potential solution for your organization.

Taking Time & Resources Away from Core Business

Many Executives and Business Owners do not have the time to weed through resumes and screen applicants, which can result in a bad hire if the proper screening is not taking place. This is the type of problem that will lead to an early termination of the employee. Therefore, your time has again been wasted. This is especially true for smaller companies who do not have an in-house recruiter to keep up with the organization’s hiring needs. By outsourcing, you can level the playing field and not have to worry about losing good talent, because your competitor did a better job of selling the position.

Furthermore, for those organizations who do have an internal HR Leader or department, that does not necessarily mean they have the time to run a thorough recruiting process. Most HR Managers spend their day-to-say focusing on a multitude of urgent matters. These responsibilities can include employee relations, internal affairs, benefits, and other critical matters and more. In this case, outsourced recruiting services allos an organization to scale by building a robust, end to end recruiting process that does not interfere with other foundational business processes.

High Turnover Rates

Companies that do not have a thorough recruiting process have a hard time keeping employees. This is because valuable information about a candidate such as their goals (professional and personal), motivations, strengths and desires are often overlooked. Due diligence is often not conducted due to resource constraints. In this case, a company might outsource its recruiting to an RPO firm to reduce the turnover rate. Subsequently, doing so will help solve the bigger issues around the gaps in the overall recruiting strategy. The turnover rate is the percentage of new hires that leave within a designated period, say the first month or two of the position. Unsurprisingly, a high turnover rate can hurt a company’s bottom line.  

In conclusion, there are many benefits to implementing an outsourced recruiting services. If you have limited resources, but are looking to scale your business, reduce your recruiting spend or reduce your turnover rate, then this may be the solution you seek.