Investing in an in-house recruitment team may seem like a more cost-effective and time-efficient way to grow your business. However, it comes with a greater deal of responsibility and use of resources than many companies realise.
In this blog, we take a look at hiring vs outsourcing and explore the pros and cons of each. Is outsourcing recruitment better for your organisation? Find out below.
Responsibilities
A significant advantage of having an in-house team recruiting new talent is that they solely focus on finding the right fit for your company. Outsourcing recruitment means the team searching for candidates will have to divide their time between your company and their other clients.
In-house -An in-house team knows your company inside and out and has a more in-depth knowledge of company culture. Although they have a better understanding of your specific hiring needs, they also will have multiple areas of responsibility, such as risk management, employee engagement programs and workforce development. This takes away from the task at hand — growing your team.
Outsource - Although external suppliers aren’t fully immersed in your company’s culture, they can provide greater flexibility, as well as guidance on effective workforce planning, training and development and building long-term talent pools. Plus, they have the experience in finding the right type of people and at volume. Not many in-house teams have this capability.
Financial costs
Hiring one new team member costs businesses thousands, so it’s no surprise that hiring your own in-house recruitment team is a costly expense. On the other hand, outsourcing is both cost and time-efficient.
In-house - Hiring new staff members causes a lot of financial challenges for companies. It takes both time and money to hire a full-time recruitment team. On top of all this, compensation, training, benefits and other costs all need to be considered before deciding to hire an internal team.
Outsource - Working with an external hiring agency will cut your costs significantly. With an outsourced team, there’s no need to bother with paying a monthly fee on LinkedIn and other recruitment platforms as this is all covered by the agency. Going down this route allows you to spend your budget in other essential areas of the business.
Scalability
With a recruitment agency, resources can be scaled up or down according to your requirements — a task that’s harder to do with an internal HR team.
In-house - When your business is growing, having an in-house HR team is very handy. However, when it comes to scaling down, it may negatively affect your finances and result in a surplus of resources.
Outsource - An expert recruitment agency will help you grow your team comfortably and allow you more time to focus on other important matters. It’s a more scalable approach as increasing team numbers can be achieved easily in comparison to in-house teams. By outsourcing your recruitment strategy, you'll benefit from knowing exactly how many people you need and when you'd need to hire them by,
Control
Naturally, outsourcing your employment requirements means handing over control of the recruitment process which means choosing an agency you trust is essential.
In-house - With greater control over your HR team, you can delegate tasks and watch over the recruitment process easily. You can also set the team’s priorities to help ensure projects are met. However, it also depends on whether you want to focus on this or whether you'd prefer to hand this off to the experts.
Outsource - Working with an agency means you’ll be competing for time with their other clients. This could create a struggle in getting in touch with the right people at the agency, which is why it’s incredibly important to choose an organisation that truly understands your needs and acts as an extension of your company, such as Kingdom Recruitment.
By outsourcing, you'll be able to hire talented people quicker and improve your recruitment effectiveness. Ultimately, it enables you to concentrate on your core business instead. As candidates are thoroughly vetted — depending on the partner you work with — it'll reduce rates and you'll only ever work with an improved quality of hires.
But before you make a decision about whether or not to outsource your recruitment needs, take a look at our playbook below. It’ll help you create a cost-effective hiring strategy and offer everything you need to consider to hire the ideal candidate for the job.
Discover how to create a cost-effective hiring strategy
An effective hiring strategy needs to determine who you’re going to hire, how you’ll hire them and when. The playbook is packed full of plays, tips and advice with topics ranging from creating a successful onboarding plan, measuring employee satisfaction levels, building your workforce plan and much more.
To get started and access these insights, click the button below today.
