What is outsourcing?

Outsourcing is simply the arrangement whereby one organization provides services for another that could also be delivered in-house. Outsourcing is a trend that is becoming more common for the services that were previously seen as intrinsic to handling a business. For example, sometimes, an organization outsources their entire information management. Outsourcing can either be in the form of contracting a whole service to another organization or the practice of hiring contractors and temporary office workers for small and medium companies.

Outsourcing can also be done with the recruitment process. Recruitment process outsourcing (RPO) is when an employer hires an external service provider to handle all of its recruiting efforts. Recruitment outsourcing ensures that you get the employees to have the required skills for the job, and everyone at the organization is better positioned for success. The RPOs are contracted as a recruitment solution for an organization relocating or going through mergers and acquisitions. Outsourcing is very effective when there is a need for multiple hires in a short time.

Outsourcing has a lot of benefits for the organization. Some of these are:

 1. Higher Quality Talent:

The primary purpose of outsourcing is to get the best permanent talents for the organization. The time spent by the RPO in sourcing, screening, and onboarding new talents ensures that the company receives the best talents for the role. They also create a talent pool to ensure that if there is any vacant position, there are ready-made talents to fill such roles.

Recruitment outsourcing ensures that you get the employees to have the required skills needed for the job and that everyone at the organization is better positioned for success.

2.  Cost Efficiency:

The recruitment firm ensures that the best talent is hired and retained, and outsourcing is more cost effective than traditional recruitment. They are measured by the time to hire, cost to hire, and quality of hire. In addition, they ensure that a position is not left open for a long time. The more a role is vacant, the more costs and decreased productivity. The job of the RPO is to reduce the cost to a minimum.

 3. Global Compliance:

Employment laws change regularly, and always being knowledgeable of these changing laws can be challenging. The recruitment agency must stay on top of these laws to know what is compliant and what is not. Outsourcing removes the headache of always being on track with employment laws.

4. Reduction in Advertising Expenditure:

Job ads are expensive, especially when trying to get the best talent(s). However, outsourcing removes advertising costs and redirects them to other purposes.

5. Reduction in Talent Acquisition Expenses:

Outsourcing recruitment is one of the most effective ways to ensure that the cost of talent acquisition is reduced. However, the recruitment process is time-consuming even for the best HR and talent acquisition professionals, mainly with hard-to-fill roles.

The organization is losing money for every position that remains open. The RPOs understand this and ensure that the roles are filled quickly with the best talents.

6. Enhanced Candidate Engagement:

The HR professionals understand the importance of candidates’ engagement. However, getting the experience right is not easy. The recruitment process is time-consuming and often removes the HR departments’ primary objectives. Outsourcing allows the in-house employees to maximize the candidate experience in the organization entirely. It also increases the chances of attracting top talents and significantly impacts the organization’s ability to grow its market share.

7. Efficient Recruitment Processes:

With the use of an RPO, the hiring processes are more efficient, with the hiring being centralized. The RPOs work with different organizations around the world. So they have vast knowledge and experience with the best practices that enable them to deliver the best results for the organization. You are ensured of having a special delivery of talents across all organization divisions.

Recruitment outsourcing has many benefits for organizations, and we hope that this article has been helpful.

Reference Links: