Recruitment process outsourcing (RPO) has gained popularity in recent years. One of the reasons for the popularity of outsourcing recruitment is the Great Rehire.
This phenomenon, a consequence of the still ongoing Great Resignation, is compelling businesses to up their recruitment game.
With the Great Rehire, companies have the opportunity to attract top talents that recently left their previous roles. However, enticing the best candidates in any industry can be challenging for companies with limited recruitment capabilities.
In such cases, outsourcing recruitment processes to Business Process Outsourcing (BPO) firms is the best option for these companies. But how exactly does outsourcing recruitment work, and how can it benefit your business?
Read on below to find out.
Outsourcing recruitment: How it works
As the phrase implies, outsourcing recruitment refers to transferring a business’s recruitment process to a third-party service provider.
Companies can outsource just part of their recruitment procedures (e.g., outsource talent sourcing but retain candidate screening in-house) or the entire end-to-end process.
Businesses that outsource their recruitment processes can choose between integrated or full-service solutions.
In an integrated solution, a company hires a third-party provider’s services as an extension of its in-house recruitment team. This is usually the case with companies with established HR or talent acquisition teams that need help with large-scale recruitment efforts.
On the other hand, a full-service solution entails outsourcing recruitment as a whole. This means entrusting talent sourcing, applicant screening, candidate interview, and other elements of recruitment to the third-party service provider.
Advantages of outsourcing recruitment
Outsourcing recruitment wouldn’t gain popularity if it didn’t present many advantages to businesses.
Below are some benefits companies can gain through this practice:
Greater scalability
Outsourcing recruitment allows companies to scale their recruitment operations depending on demand.
For instance, many retail stores have an increased need to hire more staff during the holiday season. In corporate setups, opening new departments often necessitates intensified recruitment to fill the department’s vacancies quickly.
In both scenarios, scaling up and down is necessary for businesses to get maximum cost-effectiveness from their recruitment efforts.
Cost-effectiveness
Cost-effectiveness is a result of recruitment outsourcing’s scalability. Companies can scale down recruitment operations during lax periods and save salary costs and overhead expenses from unnecessary staff.
Hiring the services of a BPO that specializes in recruitment ensures that the process does not overextend and vacancies are filled quickly. This reduces the overall hiring costs by making the process more efficient.
Better technology
BPO firms that offer recruitment services will naturally invest in the technologies needed for this service. Outsourcing recruitment gives companies access to these technologies.
Many BPO and RPO firms have their own applicant tracking systems (ATS) in place or have the capability to support their client’s existing technologies.
Improved candidate experience
The superior industry technologies that outsourced recruitment providers use significantly improve the hiring procedure experience for applicants.
With better technologies, such as ATS and recruitment chatbots, candidates can communicate with talent acquisition teams on the fly and with less waiting time.
It also reduces the frustration that applicants can feel when they wait too long before getting a response from recruiters.
What to look for when outsourcing recruitment
Before outsourcing recruitment to a third-party service provider, businesses must ensure the competence of their would-be partner company.
Here are some factors companies should consider before inking a partnership with outsourced recruitment providers.
Knowledge of your business or industry
Familiarity with your business or industry’s nature is paramount in recruitment. Outsourcing recruitment to a BPO company with no understanding of how your organization operates or the values and culture of your company can lead to bad hires.
Reputation
Another critical factor to consider is a company’s reputation. A positive reputation signifies quality services, effective hiring processes, and commitment to its partner company’s goals.
Business owners can ascertain the reputation of recruitment BPO firms by talking to their past and present clients.
Company size
A recruitment BPO’s company size matters depending on its client’s needs. For example, a small BPO may not be able to provide the large-scale recruitment operations that a large company can.
On the other hand, smaller recruitment BPOs offer more agility and excel in providing specialized recruitment services.
Is outsourcing recruitment right for your business?
Hiring and retaining workers is critical to every company. These two elements are what primarily set businesses apart from their competitors.
Employing top-tier talents to support your day-to-day operations starts with a robust recruitment process. Outsourcing your recruitment lets you circumvent the common challenges organizations face when looking for professionals to fill certain positions.
Over the years, businesses of all shapes and sizes have successfully utilized recruitment process outsourcing as a strategic talent acquisition practice.
Note that the right RPO provider understands your hiring requirements and will work with you to devise a solution to address your needs.
