Hiring is among the most resource-intensive activities undertaken by a business. Advertising the job, screening CVs, background checks, and organising interviews for dozens of candidates can end up consuming considerable money and manhours. At the same time, the risk of bad hires with the potential to do significant damage is a very real threat that HR teams must perpetually guard against.
Whatever the reason for hiring—whether it is filling a vacancy or business expansion—following a rigorous and well-defined recruitment process is integral to the long-term success of the company. That is why an increasing number of businesses are opting for recruitment process outsourcing which enables them to access necessary expertise and resources while reducing hiring costs. Below we list some of the key ways in which recruitment process outsourcing helps businesses get better hires resulting in all-round benefit for the company.
1. Ease of Hiring
Working with a recruitment agency makes the hiring process simpler for employers. It is the responsibility of the recruitment partner to understand the requirements, publish the job ad, screen applications and conduct preliminary interviews with candidates. Only shortlisted applications are forwarded to the employer. Your recruitment partner will also help you conduct background checks once the final selection has been made. Your role is usually limited to conducting the final screening/interview—thus making the recruitment process stress-free.
2. Better Outcomes
Working with domain specialists results in better outcomes due to advantages like better expertise and technology. Recruitment firms capitalise on their access to a robust talent pipeline to find suitable candidates for your company. Their well-honed systems and processes are particularly suitable for hand-picking the best candidates due to better screening, shortlisting and selection practices.
3. Cost Reduction
Tying up with a hiring agency means companies need not maintain a full-fledged recruitment team leading to savings on salaries and benefits. There are several options like end-to-end, project-based and on-demand models offered by your recruitment partner. Choose the one that is most suitable for your business after a proper assessment of your requirements.
4. Focus on Core Business
Where the company outsources its talent acquisition to an external agency, it can divert its resources and energies to its core businesses, including brainstorming on new product lines, marketing strategies, reducing production costs etc. It also leaves the in-house HR department with more time to focus on strategic initiatives like employee engagement and training.
5. Reduction in Turnover Rates
Turnover rate is the percentage of new hires who quit the company within a specific duration—
say a few months after joining. A high turnover rate is a bad sign for a business. Costs aside, it is frustrating for the management to grapple with the issue of high attrition. When this continues despite the allocation of consistently bigger budgets towards salaries and perks, it signifies a bigger problem with recruitment and staff-related HR functions. In such circumstances, a specialised hiring agency can help the business reduce turnover rate by streamlining the recruitment process.
6. Ideal for Hard-to-Fill Vacancies
Certain jobs require candidates with highly specific skillsets. Finding such candidates could be challenging for an in-house team due to lack of experience in sourcing skilled candidates, especially if it relates to hiring in a non-core field. In such cases, an external agency can help find the right candidate within the specified timeframe aided by better networking among jobseekers.
7. Ideal for Small Companies
Small businesses may find it hard to acquire the financial resources to maintain a full-fledged HR department. An external hiring agency can help pick the right candidate from its vast pool of talent to help the business fill out key positions.
8. Ideal for Temporary Hiring
A hiring agency can help in recruiting contingent workers with speed and efficiency. They have a greater pool of potential jobseekers to tap into, to provide the business with the right category of staff. Left on its own, businesses will have to vet a long list of candidates, shortlist them and interview them in a process that could stretch over months. A specialised hiring agency can do the job in weeks with the option to replace the employee if they are not up to the mark.
Improving Overall Business Performance
Apart from the above, recruitment process outsourcing also ensures scalability, reduced vacancy time and better employer branding. The correct use of recruitment outsourcing could bring crucial benefits for the company including better hires, better employee engagement and improved productivity, thus addressing key HR issues to improve overall business performance.
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