Why is it beneficial for staffing companies to outsource?
There have been many changes in the recruitment industry over the last decade, no more so than for recruitment staffing companies. The market is enormously competitive, totally saturated in many areas and for many companies, breaking even is a real challenge. The days of retained contacts are gone and companies are often not paid for work undertaken, unless they are first to fill a vacancy. Advances in technology, particularly in the areas of candidate sourcing, mobile applications, data generation and e-reference checking, have resulted in staffing companies being under continuous pressure.
To survive and thrive, staffing companies need to lower their operating costs and improve candidate management and back office processes. Forward looking staffing companies are taking on the challenge by utilising outsourcing as the next discernible and rational step to take; allowing them to focus on their core business and increase revenue.
By adopting an outsourcing model these companies are able to focus their resources and time to generate high ROI, reduce cost, increase productivity, efficiency, and skills and fill job orders faster. The flexibility outsourcing can offer, has seen some outsource parts of the recruitment process, with others outsourcing the entire process. It’s not just for the large firms either; staffing companies of all sizes are seeing the benefits.
So, what are the key benefits of outsourcing for staffing companies?
Cost reduction – by outsourcing key functions, staffing companies can see cost-savings of up to 50%. Extra costs for hiring staff are reduced and existing staff efficiency can be increased by removing non-core tasks; ensuring they can focus on growing the business.
Increased flexibility, scalability and reduced risks – outsourcing allows a staffing company to adapt their resource levels according to business needs. There is no need to employ unnecessary staff when things downturn, or conversely, be short when business expands.
Reduced hiring time and Increased quality of hire – from the date a staffing company receives a new role to the time when a candidate accepts a job offer can be typically reduced by 30 – 50% when outsourcing is applied. Databases of thousands of pre-screened candidates can increase your talent database. When tied in with more efficient processes and the option of utilising a 24-hour service, staffing companies can speed up processes and reduce delivery time.
Streamlined processes – staffing companies who outsource are able to examine their recruitment processes and determine where there is overlapping, excessive costs, and inefficient practices that exist. A bespoke outsourced model can be created, that provides service levels and success metrics that exceed current levels and delivers the best talent with less time and money.
It clearly makes sense for staffing companies to outsource; however it is vital to select a partner based on experience, quality, service and price. By selecting the right outsourcing partner staffing companies can fully benefit from their partners ability to organise themselves to safeguard high compliance standards and develop processes that afford the speedy sourcing, screening and delivery of the very best talent.
To discover more about the benefits of outsourcing for your business, come and see Julieann Fouad’s talk, “Is Outsourcing a valid strategy for your recruitment agency?”at the Recruitment Agency Expo in Birmingham on the 5th October from 11:45- 12:15 PM, Theatre 1.
Register here for tickets http://bit.ly/2wFZNGu