Outsourcing the recruitment process is recognized as a cost-effective and efficient manner to capture best-fit ability. Following ways that outsourced recruitment can help to reduce costs while adding business value:
1. Cost Reduction Through Shared Risk
When the industry is expanding recruiting needs may suddenly rise or will be in great demand. Outsourcing the recruitment function allows a company to pass along the cost risk of those resources to the business partner. Recruitment Outsourcing firms take on the responsibility of efficiently adjusting resource levels when hiring fluctuations happen so that the client does not bear the burden of carrying unnecessary staff, or conversely, being short when greater resources are required.
2. Faster Time to Hire
Time is money and hiring new professional level employees takes a lot of both. From sourcing resumes to conducting interviews and negotiating offers, acquiring a new employee taxes your internal resources. Plus, each day a job requisition remains unfilled, your business loses the benefit of that employee’s contribution and wastes recruiting and budgetary resources that could be dedicated to other initiatives. Outsourcing all or part of your internal recruitment function can help you in the hiring process.
In Short, Recruitment Process Outsourcing cut down the cost by following percentage:
- RPO approach allows a holistic view of recruitment needs and offers better workforce utilization, netting a 10 to 15 percent saving.
- Demand management is enhanced by combining contingent hiring solutions with permanent staffing, allowing an additional seven to 11 percent cost reduction.
- Additional budget reductions of three to four percent can be achieved with reduced service fees due to the combination of permanent and contingent hiring vendors.
