Pros And Cons Of Outsourcing Recruitment Functions

The concept of outsourcing job recruitment functions has spread like wildfire since inception. Many companies nowadays make use of staffing firms whenever a job vacancy arises. Recruitment firms, also known as employment agencies play a coordinating role in the hiring process. They match employees to potential employers based on the requirements of the given vacant position. Recruitment firms can assume partial or complete administrative functions of the HR department. After finding the right person from the shortlisted candidate pool, the hiring company pays the recruitment agency for completing the hiring process.

The idea of outsourcing HR functions sounds rather farfetched from the conventional workplace models where there is usually a HR department. However, outsourcing hiring functions as opposed to managing this process in-house comes with several advantages. There are a few downsides to contend with as well. As a result, it is important to be well versed on the pros and cons of outsourcing recruitment functions before you decide to go down this road.

The Advantages of Outsourcing Recruitment Functions

  • Outsourcing recruitment functions is cost effective: While outsourcing your recruitment will cost you some money, hiring permanent HR staff can prove to be more expensive. This is because of recurrent wages for HR employees. The good thing with recruitment outsourcing is that you only pay for these services while you need them. The one-off fee that most staffing agencies charge for carrying out everything from candidate sourcing, to short listing, interviewing and choosing the most suitable person for a job position only costs a fraction of what it takes to maintain a full-time HR department.
  • A recruitment agency can save employers time: The hiring process can be quite time consuming. From placing job ads and social media posts, to short-listing candidates, conducting preliminary interviews, thorough vetting, and choosing the best fit for the job, the entire recruitment process can take weeks or even months. If you are short of time, a good recruitment agency can take care of all your hiring needs. Hiring a reputable staffing firm allows you to concentrate on core business functions while a team of professionals handles the recruitment process from start to end.
  • Outsourcing staffing functions from a recruitment firm can improve the quality of hire: If you are not experienced with recruitment, chances are that you can end up with the wrong employees. Since the success of your company is dependent on the caliber of people that you hire, you want to make no mistakes with the recruitment process. An experienced staffing agency can bring valuable expertise to help you source for the best talent. These agencies usually have trained HR experts at your disposal and they can handle the recruitment process professionally.

The Downside of Recruitment Outsourcing

Potential waste of resources: Letting an external party to handle recruitment functions for your company comes with the risk of not finding the right fit for your team or company. This could be a big waste of time and money. However, you can manage such risks by ensuring to hire a reputable and experienced recruitment firm.

It is quite clear that the prospects of outsourcing recruitment functions far outweigh associated risks. For the best results, be on the lookout for recruitment firms that specialize in your particular niche or industry.

About the Author

Arran Shaw is a human resources consultant, author, and blogger. In addition to being a contributing author for XpressRecruitment.com, he is also a freelance writer in the recruitment process outsourcing niche.

Photo credit: City of Olathe