Effective recruitment demands time, careful planning, and a deep understanding of the talent market. If your internal resources are stretched thin, it might be time to consider outsourcing your recruitment process. This article explains what recruitment process outsourcing (RPO) is, the benefits it offers, and key considerations when selecting a recruitment partner.
What is Recruitment Process Outsourcing?
Recruitment process outsourcing involves transferring all or part of the recruitment process to an external partner. This can range from managing the entire recruitment cycle—from job ad creation, application processing, and candidate screening to conducting interviews and psychometric assessments, to handling specific parts of the process. For instance, in high-volume recruitments, a company might need assistance with pre-qualifying applicants while conducting the interviews internally.
When the entire process is outsourced, the partner typically manages everything from application review to first-round interviews, presenting top candidates to the client for final selection.
The scope of services can vary. Some companies might outsource the recruitment of their entire staff, forming a long-term strategic partnership, while others might seek help on an as-needed basis. A common scenario is partial outsourcing, where specific recruitment functions are handled externally.
The goal of outsourcing is to streamline the recruitment process, enhance the quality of hires, and reduce costs. Contracting is another option, allowing companies to quickly meet labour needs even during hiring freezes. Let’s delve into the benefits of outsourcing recruitment.
10 Reasons to Outsource Recruitment
1) More time for core activities
Successful recruitment is vital but often lacks the dedicated time and attention it requires. Many companies lack specialised recruitment staff, so frontline employees must juggle hiring tasks with their regular duties, detracting from core business activities. Partnering with a competent recruitment firm allows you to focus on your core work, confident that your hiring needs are met efficiently.
2) Cost effectiveness
Outsourcing reduces fixed recruitment costs and enhances efficiency. For instance, Clevry’s recruitment services operate on a success-fee basis, meaning you incur no costs if a suitable candidate isn’t found!
3) Flexibility and scalability
Business environments and workforce needs can change rapidly. Outsourced recruitment services offer the flexibility to adjust staffing levels as needed without incurring fixed costs.
4) Avoid expensive recruitment errors
Hiring mistakes can be costly, often amounting to 30% of the person’s annual salary. Costs accumulate from wasted time, reduced productivity, and the need for additional searches and onboarding. Poor hires can also negatively impact team morale. Clevry’s data-driven recruitment model, which measures soft skills linked to job success, reduces the risk of hiring errors.
5) Reduced administrative burden
In personnel leasing (or contracting), the partner handles payroll and other employer obligations, including healthcare, insurance, and benefits. They also act as the contact person for temporary workers regarding employment-related issues.
6) Risk-free recruitment
Hiring always carries risks. With personnel leasing/contracting, you only pay for the hours worked, without worrying about dismissal obligations or sick pay.
7) Access to wider networks
Finding suitable applicants can be challenging. Clevry addresses this by using a sourcing team to map and contact passive job seekers, ensuring a robust applicant pool.
8) Enhancing employer image
High-quality recruitment and communication are challenging without the necessary time, resources, or expertise. A skilled partner ensures that all applicants have a positive experience, enhancing your company’s employer brand.
9) Expert partnership
Recruitment professionals bring in-depth knowledge of the talent market and modern hiring tools. They can provide new, objective perspectives and strategies for recruitment.
10) Monitoring and feedback
Partners like Clevry actively seek feedback and monitor the progress of new hires to ensure a smooth transition. Onboarding reports help supervisors manage and integrate new employees effectively.
Choosing a recruitment partner
Selecting the right recruitment partner involves several considerations. Some firms specialise in specific industries, while others have a broader focus. It’s crucial to find a partner that aligns with your company’s unique needs. Ensure the partner has experience and expertise in your industry and understands the nuances of the talent market.
Additionally, inquire about their recruitment methods and tools. How do they source talent and assess candidate suitability? Do they use evaluation tools to delve deeper than the resume?
Direct Recruitment vs. Contracting
Direct recruitment involves the partner managing the process, but the new hire is employed directly by the client company. Personnel leasing (or contracting) follows a similar process, but the partner remains the employer, handling payroll and other obligations.
Direct recruitment is ideal for long-term hires you want on your payroll, while personnel leasing offers flexibility. It’s often used for temporary needs like parental leave, project work, or seasonal demand, but it can also be suitable for ongoing roles to manage headcount.
Need help finding top talent? Contact us to discuss your recruitment needs and explore how we can assist you!
