“Why do companies outsource recruiting?”

It’s a fair question to ask!

Well, the pandemic created a lot of change in recruiting.

Furthermore, recruiting goals and budgets shifted dramatically.

Recruiting in particular has come under scrutiny at many businesses.

In early 2020, hiring needs plummeted. In a few short months, they skyrocketed again.

This happens every 5-10 years. It puts human resources in a bind every time!

As a result, it makes sense that every business wants to make recruiting more affordable. Likewise, they also want more flexibility.

Let’s look at why companies outsource recruiting. This will help you make a decision on recruitment process outsourcing (RPOs).

Reason #1 Why Companies Outsource Recruitment – More Cost-Efficient

There’s no two ways about it, recruiting can be expensive!

The costs of hiring a full recruiting team add up. Don’t forget training, software, and infrastructure.

Some companies rely on HR for the hiring process. However, then you’re pulling them away from other important responsibilities.

Cost is the #1 reason why companies outsource recruiting. It allows you to focus on your core business. This is especially true for small companies.

With the right firm, an RPO agreement offers great cost-savings. In short, they’ll help your bottom line.

It’s just cheaper to use a team with a record of success.

Reason #2 Why Companies Outsource Recruitment – Faster, Better Hires

For 99% of businesses, recruiting is simply not their core competency. Working with a proven recruiting firm allows you to leverage their deep expertise. Additionally, they can speed up hiring when you’re falling behind.

A RPO can be very helpful when you have many open positions.

These are really common reasons why companies outsource recruiting.

A good recruiting firm won’t just make placements for your team. They’ll help find qualified candidates. They’ll partner with your hiring managers for quality hires. Furthermore, they’ll strive to help you make hires that will excel long-term.

Maybe you’re already getting amazing recruiting results.

In this case, you might not need an RPO.

In sum, if you want more from your budget, look for a team with a track record of great hires.

Reason #3 Why Companies Outsource Recruitment – Greater Flexibility

In today’s day and age, markets change on a dime.

And let’s face it. Internal talent acquisition teams are not the most flexible solution. Internal teams often struggle to meet hiring spikes during booms. When hiring needs fall off, they’re a drain on the budget.

It’s hard to efficiently meet hiring needs without external support. You may be aiming for greater control over the process. Unfortunately, you will lose some agility in the process.

With outsourcing, you can get extra support when you need it. The right RPOs offer flexible contracts. Think of it like leasing extra recruiters instead of buying or hiring them. Larger companies greatly benefit from this agility.

Not all RPO Solutions Are Created Equal

Now that we know why companies outsource recruiting, how do you pick one?

If you’re considering an RPO, remember that not all firms deliver the same value.

There’s three keys to look for in a good RPO. Cost, metrics for quality, and flexibility.

Cost is easy. If it’s too expensive, it’s not worth your time.

Metrics are a little trickier. The recruiting world is full of useless or misguided metrics. Many organizations champion their low time-to-fill. Similarly, others might brag about a high number of submittals. But were any of their placements successful long-term? A low time-to-fill may sound great on paper. On the other hand, rushing the process can lead to poor placements. These will only cost you more in the long run.

A high turnover rate doesn’t save you any money!

Likewise, a high number of submittals may seem impressive. However, shouldn’t recruiters send a small number of great candidates? There’s value in getting targeted submittals that really fit your role.

Think critically about any metrics in the contract. Will the metrics ensure you get high quality hires?

Above all, focus on three metrics. These are submittal-to-interview ratio, interview-to-hire ratio, and retention rate. In sum, these metrics reflect the real value you get from an RPO.

Flexibility is Key!

Flexibility is another area where RPOs differ greatly.

Traditional RPO contracts 2-3 years. Unfortunately, that’s not agile enough for business today. That’s not why companies outsource recruiting.

That’s why we offer outsourcing solutions for projects as short as 30 days. Meanwhile, we can also work on a long-term basis for greater cost-savings.

An RPO doesn’t have to replace your internal team.

We offer short-term solutions for when hiring needs spike. It allows you to rapidly hire when necessary. When hiring falls off again, you’re not overspending. You shouldn’t have to choose one or the other. With the right RPO, you can do both.

RPOs should not be restrictive. Think carefully about what you want to commit to. Similarly, think twice before a long contract. Hiring needs can change very quickly very fast!

Why Do Companies Outsource Recruiting? It Just Makes Sense

So why do companies outsource recruiting? It just makes sense. The flexibility alone is worth it. Why hire recruiters you might need to lay off next year?

Instead, you can support your internal team with external recruiters. Additionally, you can keep pace during hiring booms.

However, there’s no one-size-fits-all solution for recruiting.

The key is to critically evaluate YOUR current recruiting process.