Recruitment Process Outsourcing — Is It Right for My Company?

In the last few years there has been an ever-increasing rise in the use of Recruitment Process Resourcing (RPO). It certainly seems to be a trend and industry that is growing, but as a senior HR leader or Director, how do you know this strategy is the best for your business?

A good place to start is how much recruitment your organization is carrying out and whether there is a need based on the volumes of hires you make? Recruitment outsourcing can range from retained recruitment with agencies to full blown outsourced agreements with RPO companies/consultants on site at your business.

Ultimately, you are considering recruitment outsourcing because you have some type of problem with your current recruitment processes. You need to look at what this problem is specifically.

Questions to Consider:

• Is HR not capable of making enough direct hires because they do not have a strong recruitment background?
• If proper recruiting is in place, is there so much volume that your HR department cannot cope?
• Are you planning to embark on a heavy recruitment drive?
• Are you looking to cut costs around agency fees?
• Are you just sick of dealing with agencies directly?
• Is HR slowing down the recruiting process because they are inefficient?
• Does HR not have the right tools in place or processes in place to be efficient?

The list goes on…

Once you have evaluated your problem and realized the specific need you want to address – you are now in a much more informed position to make a decision on whether outsourcing is right for you.

There is no doubt that outsourcing your recruitment can help alleviate several of these problems and put your mind at ease, knowing you have experts running your recruitment campaigns. But there can also be pitfalls and a lack of control: sometimes outsourced companies can create more problems, adding tiers to the recruitment process and prolonging the cycle from time to hire. Let’s look at both the advantages and disadvantages for you implementing an outsourced recruitment department.

Advantages:

First, you will have experienced recruiters dealing with your hiring, rather than HR personnel whom are often not “recruiters,” as their core skills are in other areas. This hopefully will mean that the recruiters will be able to source candidates directly and have experience using headhunting methods, saving you money from paying high agency fees for every new hire you make.

Secondly, many RPO’s work on a flat monthly fee, making this a predictable cost model. Recruitment outsourcing companies sell their services on the premise they will be saving you money on your recruitment budget, so you need to scrutinize the numbers carefully. You may want to confirm whether they have the experience and capability to deliver on your requirements directly or if they in turn are using agencies for additional support. If the latter is the case, then you must question whether this is truly the most efficient method.

If you simply want to relieve the time and pressure of recruiting off your own shoulders and have no HR function, outsourcing can be a very effective way of handling the process. They will free up your time to run the business. You will benefit from having just one point of contact running your recruitment that then facilitates the process on your behalf with agencies and external providers. You will have effectively delegated this to people who understand the recruitment business.

Disadvantages:

There is no question that RPO models have their challenges. For starters, how can they guarantee an effective recruitment campaign just because it has been outsourced? Will they be more effective than your current HR department, or is it just going to cost more money?

By implementing a recruitment company in-between the business and agencies, you may then be adding an unnecessary layer to the process. The RPO will try to maintain control of the process which could potentially mean excluding agencies that are niche players and may have the best candidates, simply because they aren’t on a preferred vendor list. Many times the business doesn’t care where the candidates come from, as long as the requisitions are filled with the best people.

Making a Decision:

If you are embarking on this process and considering outsourcing, remember to assess your problem and specifically understand why you want to outsource. You may need a total outsourced model or just a managed recruiting service to eliminate multiple points of contact. Choose your RPO very carefully, and caution whether they will be using their own resources or looking externally. Furthermore, learn about the processes and tools that they use for candidate sourcing and applicant tracking. Utilizing technology and creative sourcing strategies will ensure utmost efficiency and a quicker realized return on investment.