Outsourcing some or all aspects of recruiting makes excellent sense in certain situations — and in others, it does not. We get asked quite frequently, “Why should I pay a fee to a recruiter instead of handling the hiring myself?” Fair question. Honestly, what it most often comes down to is the monetary value of time.
Cost: Money vs. Time
What is the best use of your workplace time, and what is the financial impact of your time on your business/company? These are critical questions to answer when it comes to any decision related to outsourcing. If your role directly impacts company revenue, or if you are a high-level company executive — is your time best spent working on tasks that take you away from the thing(s) that the business truly needs you to be doing daily? Should you use work time — or even worse, precious personal time — doing something you could outsource? What is the cost of your lost time on the company’s business development and growth goals?
When it comes to recruiting, the role of hiring often falls to a manager/leader who has plenty of urgent and business-critical things to do — things that help the company generate more revenue, operate more effectively, etc. Hiring is going to cost you, no matter what. Time is money, regardless of how you slice it. So is it a better use of time and money to keep everything in house, or does it make more sense to outsource recruiting support, either occasionally or entirely?
Let’s think about:
When it comes to the decision to outsource recruiting, needs and utilization certainly differ depending on company size.
Large Companies — 500+
Companies with 500 plus employees certainly have an internal Human Resources team and often a Talent Acquisition team as well. When it comes to companies and hiring-related staff headcounts of this size, the decision to outsource recruiting remains a cost vs. time analysis. On the cost side of things, an HR and TA team of five or more people might have close to a $500,000 payroll impact on a company per year. So why would an organization then agree to take on additional recruiting expenses?
Mid-sized Companies — 50-500
Companies more in the medium size range, especially those on the smaller end of the scale, may only have one or a few HR professionals on staff, and little to no dedicated talent acquisition personnel. Generally, these mid-sized company recruiting teams do not have enough bandwidth to manage all components of HR while also overseeing recruiting effectively. There is only so much time in a day.
Small Companies — <50
Small companies typically don’t have any internal HR or TA, leaving hiring on the plates of managers who very definitely have other essential, “best” use of time responsibilities.
Pain Drives Change
Regardless of time or cost, pain is what ultimately drives change. This is very true when it comes to the dynamic of outsourced recruiting.
A critical open position remaining unfilled causes pain. An unmet hiring deadline causes pain. An internal recruiting staff that is not equipped to satisfy company talent acquisition requirements causes pain. Wasting money causes pain. That’s when external recruiting can step in, save time, end pain, and make sure that everyone involved is spending money effectively and focusing on what they do “best.”
If you are having recruiting-related pain, contact us to quickly and effectively connect with your next incredible hire.