Reasons To Outsource Recruitment As A Small Business

Small businesses don’t usually have the manpower and resources to meet the requirements of expanding their business in a sustainable manner. Owning or operating a business, no matter how big or small it is, needs a support system for its employees and the maintenance of its facilities. 

The central departments of a business are:

  • Executive
  • Marketing
  • Sales
  • Finance
  • Purchasing
  • Human Resources
  • Recruitment

These departments are an important part of a business. However, each of them costs time and money which affects the business decision. With that in mind, small businesses tend to have limited resources to spend. Outsourcing provides the opportunity for such businesses to reliably fill in those needs. 

According to an article published by Investopedia, the cost of recruitment can be as high as $3,500 per new hire. The total cost of hiring includes advertising the job opening, the time cost of an internal recruiter, the time cost of a recruiter’s assistant and performing other recruitment-related tasks, the time cost of the person conducting the interviews, drug screens, background checks, and various pre-employment assessment tests.

Perhaps the easiest choice is to outsource a recruitment team. Outsourcing a recruitment team can be done remotely and sourcing of potential candidates can be local or off-shore. The process of recruitment is time-consuming and costs a lot of money for companies especially if that company has limited resources and is located in an area that has a limited pool of potential candidates. 

 

Budget-Friendly 

An attractive alternative for small businesses is to minimize their internal staff. Outsourcing recruitment is a cost-effective solution because it lessens the time-consuming and expensive process of recruitment. 

Instead of handling a whole department, small businesses can cut costs by outsourcing a recruitment team with off-shore or on-shore providers. Moreover, the most likely situation is that the outsourced recruitment team will work remotely. With that in mind, a small business will save resources by limiting the number of their internal employees, workspace, and equipment, and save costs by leasing a smaller area. 

From the points mentioned above, small businesses can save their money and time to focus on the main goals of the company. Furthermore, the savings incurred by outsourcing recruitment can give small businesses the flexibility to meet unforeseen challenges in the future. 

Flexible Recruitment Options 

We all know that the business environment is a continuously changing landscape. Wherein, current business needs will continue to directly affect the number of employees needed to meet the ongoing demand.

With the scalability of an outsourced recruitment team, a small business may easily increase the number of outsourced recruiters when the business needs to hire more internal employees. Moreover, the ability to decrease the number of outsourced recruitment when there is no need to hire someone. 

The most popular term for outsourcing recruitment is Recruitment Process Outsourcing. To put it simply, RPO is a specific service offered by outsourcing companies. It is a service that offers bespoke solutions or packages for every client’s needs or requests.  

For example, a client can reach out to a full-service BPO company and provide all of the required information and qualifications for a candidate. Afterward, the BPO service provider will handle the entire recruitment process. After all of that is done, the newly hired candidate will be transferred to the client at an affordable rate. 

Types of Recruitment Process Outsourcing: 

  • Contingency Recruitment – Emphasis on faster recruitment thus sacrificing quality over quantity.
  • Retained Recruitment – Emphasis on the quality and expertise of the person to be hired.
  • Contained Recruitment – Combination of Contingency and Retainer Recruitment.
  • Custom Recruitment – This is a customized placement fee prioritizing the number of positions that need to be filled and the available budget of the client is taken into consideration.

Wider Scope of Qualified Candidates

One of the reasons why businesses should outsource recruitment is to have a wider scope of potential hires. In-house recruitment teams are limited geographically when it comes to hiring new people. That limitation affects small businesses’ ability to grow and sustain their operations. However, an outsourced recruitment team will bridge the gap between the high cost of recruiting and the increased quantity of candidates. 

Geography has been the major hurdle in recruiting. More often than not, the most qualified candidates are in other locations. Wherein, an in-house recruiter will have a difficult time headhunting. In addition, some of the most qualified candidates are reluctant to relocate to another city or state. Outsourced recruiters can look for qualified candidates who are willing to relocate or work remotely. 

Best Business Partner

Some small businesses are hesitant to lose control when they outsource a service, But that is not the case in outsourced recruitment. As the client, you will always have the final say when it comes to hiring.

Outsourced recruitment companies will only provide what their clients have asked them to do. When a small business outsources its recruitment, it is more likely that it is a service offered by an outsourcing company and least likely to be independent contractors. 

In this day and age, small businesses are looking for a stable partner to provide them with top-notch support that goes beyond the services they need such as reliability, longevity, and transparency. It’s better to outsource a recruitment team to an outsourcing provider due to their extensive experience, wider scope of connections, and faster turnarounds. 

Conclusion 

All that is said, outsourcing a recruitment team will provide small businesses the opportunity to have cost-effective solutions, flexible recruitment options, wider scope of qualified candidates, and a stable and reliable partner.

Outsourced recruitment is a solution for small businesses that are on a tight budget and limited manpower. This will give small businesses the flexibility to continuously adapt to changing business needs without hurting their pockets.

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