When should you consider outsourcing your recruitment?

When should you consider outsourcing your recruitment? Discover some of the key business indicators, as revealed by Nicki McCulloch, Director of Client Solutions in APAC.

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When should you consider outsourcing your recruitment?

There are many reasons that organisations start to consider RPO or MSP solutions. Generally, there are two key things that cause the discussions to start: the first is the cost of recruitment that the organisation is carrying, and the second is noise from the business, because recruitment isn’t working!

When we speak to organisations about outsourcing, we go through a business case model with them to make sure that an RPO, MSP or Total Talent solution will actually help them solve their particular problems or not.

Typically, where there is a good cause to outsource, recruitment spend on third-party agencies is high, the time taken to fill roles is high, and candidate and hiring manager satisfaction is low.

Outsourcing can also be a good idea if there are specific pain points or challenges, perhaps in strategic sourcing or recruitment marketing. Engaging an RPO provider allows access to subject matter experts who engage with the client for the lifecycle of the solution.

We are having more and more discussions with organisations concerned about the compliance and risks associated with their contingent workforce, and are therefore interested in outsourcing this section of their employee population.

Whether that’s as a vendor-neutral model, where agencies continue to supply the talent but the MSP provider payrolls or with a direct source and payroll model, the administrative and compliance burden is taken on by the provider and the organisation realises significant benefits in cost reduction and process efficiencies.

Running a recruitment diagnostic for anyone who is considering outsourcing is key and that’s actually the really fun bit of my job, getting into the detail and partnering with HR or Procurement to recommend a solution that is fit for purpose for their requirements.

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