One of the main questions businesses will ask when commencing the hiring process is: which is best: outsourcing or in-house recruitment? It is important to understand the positives and negatives before deciding on the option to proceed with. As well as which option will help produce the best results and find the best employees, that will have a high level of productivity and success. There is nothing worse than hiring the wrong candidate and having to go through the process again, it wastes time and money.
This article will aid you through this important decision making process. It will suggest the importance of both options: outsourcing candidates, also known as recruitment process outsourcing (RPO), as well as discovering which is best financially for the company, and the level of responsibility and control you want through the process.
Before making the decision, it is important to understand the facts of both options, which will allow you to understand which is best for your hiring needs. Below is an overview of the differences between hiring an in-house recruitment team and outsourcing with external agencies.
Using an external company to aid you through the hiring process means a lot of responsibility would need to be handed over. This would be the perfect opportunity if there are more essential business matters to focus on, this is mainly for larger businesses. This can be seen as very beneficial as there is flexibility with regards to managing responsibilities. Within this process, the agents team up with your HR team, this ensures that there are still internal voices to aid this process to be completed to a successful level. In addition, the agents can support the HR team in the best workforce planning, training and development. Therefore, if your HR team is likely to be overwhelmed with the amount of tasks at hand, using an RPO agency is most likely the best way forward.
In-house recruiting are employees that are already set up under payroll, for your specific business. A benefit of using this team is they already understand your business culture and requirements for the job roles. Therefore, they are able to understand which candidate would be the best fit for the role.
Another key element to be aware of is the financial aspects. Using an in-house department for hiring means they will always be on the payroll, making this a costly decision. However, if you were to choose an external recruiting agency, it is likely to cut down on costs, due to having the option when to use them. Therefore, RPOs are likely to be best suited for smaller businesses that don’t have the funds to employ a whole department dedicated to recruitment and employment.
By using an outsourcing agency means a lack of control during the process, another thing to think about is an RPO is likely to have other clients. Their time will not all be dedicated to your company alone. Whereas, in-house recruiters will have complete control over the recruitment process, the positive of this is they are a team within your business. You will be able to review the team's performance, and would be able to have a say in the process.
It is important to digest the information above, as well as doing more research if you are still unsure in which direction to take. Ensure you understand what your business needs and can financially handle, before deciding on a recruiting option.