• Jack Sharp

3 signs you need to outsource your HR and recruitment


It costs more than £30,000 to replace a member of staff. This is, of course, a malleable figure, but the point stands: Recruitment is expensive. From ending software subscriptions to reallocating resources to hiring new employees, there’s often no escape from the burden of bringing in new people to a business.


But, like finances, recruitment is a critical pillar to business success. After all, a business is made up of a group of hard-working individuals, and without these people, a product or service is nothing. Making recruitment cost-effective, then, is priority number one.


Here are 3 reasons you need to outsource your HR and recruitment. And no, it’s not just about the money.


1.    Employees struggle to focus on the big picture

Board members aren’t the only people who have great ideas. Many HR managers and recruiters – those people who work in the field day in, day out – have many ideas on how to improve workplace efficiencies. All it requires is for you to give them space enough to think, and to hear them out when they’re ready to share.


Let’s put it this way. The more blue sky thinkers your business has, the more progressive your company will be. In return, you’ll receive loyalty from employees who feel valued. Considering that 79 percent of people who quit their jobs cite ‘lack of appreciation’ as their reason for leaving, it’s in your best interest to outsource that in-between work so your employees can contribute to the overall business goal. Value is loyalty, and loyalty is priceless.


2.    Your employee retention rates are low

One third of new hires quit their jobs at the six-month mark. Today, people are moving roles on the fly, unlike the workplace of yesteryear where people would remain employed with a single company for the duration of their career.


Internal recruiters work to hit KPIs and will do what they can to keep their job. After all, if they aren’t performing, they’re fired. An external recruiter will work to find an employee who will stay in a role for a long time, ensuring a great client relationship. As a result, external recruiters look for the perfect candidate, instead of settling for good enough.


3.    Your internal recruiters aren’t filling roles quick enough

Every business is in a state of growth. Subsequently, your HR and recruitment department never settles. There are always roles to fill and people to hire. But, companies have slow periods and fast periods of growth. Instead of building an internal department that will constantly be either over or under resourced, use an external recruiter to step in and support the workload.


Contingent recruiters are on the rise, use them. Inefficient hiring departments will lead to poor hiring decisions, a higher cost and lower retention rates. And this will surely have a knock-on effect on company culture. Be sure to build a relationship with external resources that you can call up in a time of growth and scale back in a time stabilisation.


External recruiters aren’t the only way to go

As an executive search firm, it might be unwise to end this blog post by telling you that outsourcing to a firm like us isn’t the only way to go. But the truth is, it isn’t. Automation is the way forward, and for many reasons:


  • It gives employees their time back: Employees spend 20 to 40 percent of their time searching for documents manually. Automation frees up that time to focus on what’s important.

  • It’s cost-effective: For every four jobs lost, one new automation management position is created. No longer are you paying wages of multiple employees. Instead, you’re paying for a single subscription to a multi-faceted automation application.

  • It’s reliable: In the IT sector, human error accounts for 90 percent of cyberattacks. In recruitment, human error could result in the hiring of poorly qualified people. Automation removes that probability.


With this said, however, recruitment is a people business, and it take a person’s instinct to understand who to bring into a company. The truth is, technology will not replace job roles, only help people perform better. Outsourcing, then, will not replace your internal recruiters, only support them during the hiring process.

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