Let’s be frank for a moment. As hiring professionals, we all know that it can be confusing trying to decide what recruiting method will provide the greatest return on investment. Recruiting outsourcing is a decision that cannot be taken lightly. It must fit in well with your business objectives if it is to succeed.
While there are two key options in recruiting to choose from, they each have different price points and terms that may or may not work well for your business staffing needs. Outsourcing recruiting tasks and processes, otherwise known as RPO, can be beneficial because they give your business the best of both worlds – convenience and cost-effectiveness. This is where being “in the know” about recruiting is crucial.
There’s the price factor. That big dollar sign in the sky that you need to have a clear picture of. If you want to have any chance of getting your executive team on board, you need to be able to show them the numbers. After all, just like any other aspect of business, human capital management comes down to the costs vs. the gains. Let’s take a closer look at the world of RPO from the inside out, so you have a better idea of what recruiting outsourcing may cost, and how it can benefit your business.
First, let’s define what happens with recruiting outsourcing, because the industry lingo can get fairly confusing and it’s often interchangeable.
What is Candidate Sourcing?
As part of a recruiting outsourcing process, candidates are located who closely match the requirements of your open job orders. Generally, the candidates are partially vetted, meaning the basic information is confirmed by the recruiter. Candidates are given some background on your company and then they are referred to you for the interviewing process. You handle the negotiations and background screening yourself.
What is Recruiting?
In an RPO model, recruiting is a service that provides quality candidates who are fully-vetted by expert recruiters, using a variety of resources. That is, the recruiter handles all the footwork from sourcing, screening, writing a detailed description a candidate, verifying their employment and educational history, back-ground screening them, and prepping the best candidates about your business. So, essentially you end up with the cream-of-the-crop candidates, ready to interview with you, with a high likelihood you will want to offer them a job on the spot. Your recruiter is there to help you with arranging interviews, negotiating compensation, and follow-up to ensure the candidate is a good fit.
Typically, this full service costs slightly more than sourcing, but it is much more cost effective because you end up with less time to hire.
Other Benefits and Cost Factors to Consider in Recruiting Outsourcing
So, as you can see, RPO encompasses many aspects of the recruitment and hiring process, which are dependent primarily on the amount of time you have to spend. And time is money in the business world, especially if you are in a high-growth industry or have a lot of turnover at your company. Add to that, the difficult to fill assignments that may take a while to fill, due to industry specific demands for certain skill-sets and backgrounds in candidates.
When using a recruiting outsourcing model to manage your staffing needs, you are getting a great deal of a service, oftentimes at a significant cost and time savings to your company’s present in-house HR department. How much this service costs depends on the services you need and how deeply you want the recruiting team to engage with your business.
As you evaluate recruiting outsourcing agencies, it’s important to find out exactly what services you are getting and how often you will get updates on the status of your open assignments. A good recruiting team will take the initiative and communicate this well to you, throughout the entire process.
The candidate resumes and reports that an RPO agency gives you should reflect the values and goals of your company. When you are presented candidates to interview, you should be getting support and feedback from your recruiter. The candidates should have some knowledge of your company and be excited about the possibility of working for you.
Consider these benefits as you evaluate the costs of working with a recruiting outsourcing team, because they can save your company much time and money.
Andrew Greenberg’s roots in recruiting date back to 1996. He has experience both on the agency-side and corporate-side of the staffing business, with a focus in the financial services space at companies like Bloomberg and UBS. He also has core experience with information technology staffing, and has worked for major software companies such as SAP Business Objects and IBM/Informix Software. To get in touch with Andrew, you can reach him by email or by phone at (800) 797-6160.