When Should You Outsource Recruiting?

Recruiting for your company requires time, resources, and a specific set of skills. Oftentimes, companies choose to take on recruiting and hiring functions in-house. This approach works sometimes, however, there are times when you should consider outsourcing.  

1. Outsource recruiting for key positions

Some positions in your company may be easy to hire, but those that are unique, complex, or critical to your business operations may be more difficult. Key positions are the positions that have a major impact on your business operations or your ability to reach your business and revenue goals. Making sure you get this hire right is critical to your overall success so spending the time and resources in working with an outside recruiter will pay off in the long run. 

2. To improve your hiring results 

Let’s face it, hiring managers and even some HR professionals are not adequately trained in hiring and selection techniques. Often times, in-house hiring decisions are based on factors irrelevant to indicators of success on the job. Recruiting top talent requires a unique set of skills for vetting, interviewing, and selecting the most qualified job candidates. A seasoned recruiter can improve your hiring results by only presenting job candidates that are most likely to succeed in their new role. An effective recruiter can identify the traits needed for success on the job and develop interview questions designed to identify predictable responses.  

Equally important to consider when improving your hiring results is the quality of your applicant pool. Professional recruiters have the resources and time to search for job candidates in addition to reviewing those that have applied to a job advertisement. This process is referred to as “sourcing” and is the most critical part of the recruiting process. Effective sourcing requires specific skills in searching, analyzing job requirements, and understanding the labor market.      

3. To shorten your time to fill positions

Many companies are not large enough to have a full-time dedicated recruiter in-house and depend on managers to manage the recruiting process. These individuals have other job duties outside of recruiting so oftentimes, they try to squeeze it into their day-to-day responsibilities which slows down the hiring process. An outsourced recruiter will focus solely on filling your open positions and will conduct the first rounds of interviews for you, reducing the time your team needs to spend interviewing job candidates. A recruiter will also point out the key skills and competencies of each job candidate making the selection process easier for your team.

4. During Business Expansion

Consider outsourcing recruiting during your ramp-up and business expansion periods. Your team will likely be busy managing the other aspects of a company expansion plan such as enlarging your office, new ordering equipment, and training and onboarding new hires. Having an external recruiter can decrease the time it takes to fill positions and allow your team to focus on other key business objectives.

5. To save money

You may be thinking the opposite here, “What is the cost of outsourcing recruiting, and can we afford this cost?”. Consider the cost of a bad hire or not being able to fill a position in the time you need. In a recent survey by Forsee, the cost of hiring the wrong person who performs poorly and decreases your team’s productivity is estimated to cost from 30-150% of their annual salary. Outsourcing recruiting during your company expansions can save you money compared to a full-time in-house recruiter who may not have sufficient work after the hiring for that period is complete.

Conclusion

When considering whether you should outsource recruiting, review the main points presented in this publication to help you with your decision. If you cannot afford to outsource your entire recruiting operations, focus on key positions or positions where you see the highest employee turnover. Consider the cost and disruption to your business operations if you are unable to achieve your desired recruiting results.

About the Author

Scholley Bubenik is the founder and CEO of Premier HR Solutions, an HR consulting and recruiting company in Austin, TX. Scholley has over twenty-five years of experience in human resources and recruiting. An enthusiastic networker who enjoys connecting businesses to the community, she’s authored two books – Strategies For Managing the People Side of Your Business and People Power: An Entrepreneur’s Guide to Managing Human Capital.

As an entrepreneur, speaker, and author, Scholley has been instrumental in the success and mentorship of countless businesses. She is a thought leader in developing company culture and has created and distributed numerous publications on the subject. 

Scholley holds a Master’s degree in Human Resources Management from the University of Texas and a PHR Certification.


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