2020 has shaped up to be one of the most difficult years for business in long, long time – and we’re only halfway through.
It’s safe to say that for virtually every organization, our priorities, goals, and budgets have shifted dramatically.
Recruiting in particular has come under scrutiny at many businesses. In many industries, talent acquisition teams were some of the first people laid off at their organizations.
With unemployment in the double digits, businesses are looking very closely at their TA budgets and trying to trim expenses.
Considering these circumstances, it only makes sense that more and more businesses are outsourcing their recruiting process.
Let’s take a look at a few of the biggest benefits of outsourcing your process so you can get an understanding of whether it’s right for you.
There’s no two ways about it, recruiting is expensive!
The costs of recruiting a full recruiting team, training, software, and infrastructure, and more can really add up. If you rely on HR to fulfill your recruiting needs, then you may be pulling them away from other responsibilities like driving team performance and bolstering retention.
Cost is the #1 reason businesses outsource recruiting. If you partner with the right firm, a recruitment process outsourcing (RPO) agreement can meet these needs at a great cost-savings.
In many cases, it’s simply more efficient to use a team that already has a track record of delivering results at a lower cost.
Better Quality of Hire
For 99% of businesses, recruiting is simply not their core competency. Working with a proven recruiting firm allows you to leverage their deep expertise in making quality hires.
A good recruiting firm won’t just make placements for your team. They’ll partner with your hiring managers to make sure you’re bringing on key professionals that will excel long-term.
At Qualigence, we place a great emphasis on a candidate’s ability to deliver the results you need. All too often, recruiters get caught up in arbitrary qualifications like education or years of experience.
Statistically, these credentials are a poor indicator of whether someone can truly succeed in a role. And if you’ve been in business any length of time, you’ve seen plenty of candidates who had the right degree, the right experience, all the right skills, but still failed somehow on the job.
At the end of the day, the strongest qualification any candidate can have is a track record of delivering real business results!
Maybe you’re already totally content with the results your recruiting team is delivering. If you already feel like they’re making hires that directly support business goals and boost your bottom line, then you probably don’t need an RPO.
But if you feel like you should be getting more from your recruiting budget, consider shopping around for help from a team with a record of making better hires.
Remember when we were doing business in one of the strongest markets in history? Oh right, that was only six months ago…and now we’re in a recession.
In today’s day and age, markets change on a dime. Digital disruption is either already upending your industry…or it will be soon.
The reality of the situation is that this disruption is the new normal. As technology continues to evolve, it will keep rewriting the rules of doing business.
The takeaway is that agility grows more important in business with every passing year. To win, you must be the one to adapt to an evolving market faster than anyone else.
And let’s face it – internal talent acquisition teams are hardly the most flexible or agile solution.
Internal teams often struggle to meet hiring spikes during booms, and they can quickly drain the budget when hiring needs fall off.
It’s very hard to efficiently meet hiring needs with an internal team without external support. You may be aiming for greater control over the process, but odds are you will lose some agility in the process.
Not all RPO Solutions Are Created Equal
While RPOs are often a great solution to these challenges, businesses must keep in mind that not every RPO firm will deliver the same value.
A few key things to look for in an RPO agreement is the cost (obviously), the metrics around quality, and flexibility.
Cost is easy. You want to pay a reasonable rate for what you’re getting. If it’s not providing any cost-savings to your internal team, it’s hard to justify unless you’re truly confident you’ll get vastly superior hires.
Metrics are a little trickier. The recruiting world is full of useless or misguided metrics. Many organizations champion their low time-to-fill or high number of submittals. But these give us no insight on whether these placements were actually successful long-term!
A low time-to-fill may sound great on paper but rushing the process can lead to poor placements that only cost you more in the long run.
Likewise, a high number of submittals may seem impressive, but shouldn’t recruiters focus on sending a small, targeted number of candidates that truly fit your needs for an open role?
It’s crucial that business leaders looking to outsource think critically about any metrics in the contract. Will the metrics ensure you are getting hires that really add value to the business?
We recommend focusing on submittal-to-interview ratio, interview-to-hire ratio, and retention rate. We’ve found these metrics much better reflect the value a business needs from a recruiting partner.
Flexibility, or lack thereof, is another area where RPOs differ greatly. Traditionally, RPO agreements were always 2-3 years at a minimum.
Unfortunately, that’s simply not agile enough for most businesses these days. That’s why we offer outsourcing solutions for projects as short as 30 days but can also work on a long-term basis for greater cost-savings.
RPOs should not be restrictive – think carefully about what you want to commit to and for how long in today’s ever-evolving market.
There’s No One-Size-Fits-All Recruiting Solution
Like most things in business, there’s no one-size-fits-all solution – and that includes recruiting.
For some companies, outsourcing offers tremendous cost-savings and improved quality of hire. But if your internal TA team is already driving great results, it probably won’t make sense.
The key is to critically evaluate your current recruiting process and see what would provide the best value for your unique situation.
And if you want an outside perspective on how to move forward, click here to set up a complimentary consultation with one of our recruiting experts.