Why Outsourcing Recruitment Could Be The Solution To Your Biggest Headaches
According to PWCs’ Global CEO survey conducted in 2015, 63% of CEOs now cite the availability of skills as a ‘serious concern’, the highest number for six years. In this years report, this figure increased to 73%.
Since the turbulent year of 2020, there’s no doubt about it, companies want to grow again but unfortunately they can’t grow without advertising for jobs, hiring, and retaining the best talent. Talent that is becoming increasingly difficult to engage with, which means that skilled candidates are in the driving seat.
Recruitment Outsourcing Is Gaining International Popularity
This perfect storm of increased demand coupled with reduced supply has left business leaders worried. It’s perhaps not surprising then that as the economy begins to return to something resembling normality, recruitment moves up the corporate agenda and UK companies are beginning to hire again.
Companies are increasingly turning to MSP and RPO specialists to help them rise to the recruitment challenge and remove the headaches traditionally associated with finding new talent. According to Nelson Hall’s 2014 “Trending Recruitment Process Outsourcing” report, RPO continues to be the fastest growing HRO service, and its usage is expected to double by 2017.
So why exactly are so many companies turning to recruitment outsourcing?
Benefits Of Using An RPO And MSP Provider Fall Into Five Categories
Outsourcing Recruitment Benefit #1 – Cost Saving
The most obvious benefit for companies undertaking recruitment outsourcing is reduced cost. By streamlining the recruitment process, introducing best practice, appropriate technology and removing any unnecessary procedures, companies can increase transparency of their hiring across the business and significantly reduce recruitment costs.
As well as the direct cost savings such as decreased recruitment agency spend and less reliance on job boards, savings are made in the longer term by reducing staff turnover and improving the quality of hires.
Outsourcing Recruitment Benefit #2 – Time Saving
Reducing time to fill is another key benefit of any outsourced recruitment function. The longer a vacancy remains unfilled, the greater the potential negative impact on an organisation’s performance. According to PWC, a quarter of CEOs have said that talent challenges have meant they were unable to pursue a specific market opportunity or have had to cancel or delay a strategic initiative and “33% are concerned that skills shortages will impact their company’s ability to innovate effectively.”
As well as significantly reducing the time to hire, outsourcing all or part of the recruitment function significantly helps to free up the internal HR department and hiring managers’ time, allowing them to focus on other business critical functions.
Outsourcing Recruitment Benefit #3 – Improved Quality
Recruitment outsourcing also improves the quality of hire. RPO and MSPs have been set up specifically to attract, assess and place high quality talent for their clients regardless of the role. They have already built relationships with the right suppliers and have direct access to deep talent pools. When it comes to securing the most in-demand and scarce talent across multiple functions and locations, top companies are increasingly turning to specialist outsourced recruitment providers in order to obtain competitive advantage.
Recruitment outsourcing partners will also offer their clients sound guidance on the latest employer branding and candidate attraction strategies needed to stand out as an employer of choice in today’s competitive marketplace.
Outsourcing Recruitment Benefit #4 – Compliance
By outsourcing recruitment to a reputable provider, companies can relax knowing that all suppliers and candidates are effectively screened and compliant in line with regulation, ensuring a uniformly high standard across all talent acquisition. This quality based approach to compliance removes the burden from the employer and alleviates the potential for negative consequences as a result of any unwitting non-compliance.
Outsourcing Recruitment Benefit #5 – Global Strategy
Today’s truly global organisations need flexibility to be able to source, recruit and manage talent overseas across international borders in order to stay competitive.
Working with a global outsourced recruitment partner gives companies a dedicated infrastructure to meet their global talent demands with confidence while streamlining costs, encouraging best practice sharing and adopting a consistent approach company wide.