Outsourcing HR Recruitment: What Should Managers Consider Before Deciding?

One of the famous HR practices nowadays is outsourcing, especially for those multinational or international companies. However, what factors should an HR manager think about and consider before making any decisions regarding these?

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Hi, vuishung

In my opinion, not all HR activities can be outsourced. Operational activities can be outsourced, but not the functional activities. Even in the case of recruitment activities, a pool of perfect matches for the job is produced for the organization where the final selection occurs.

Durga

Dear All,

HR Outsourcing? What is this buzz? How is it done?

Actually, not all activities are outsourced here, but only a few activities like Recruitment. Suppose you are a BIG company with a significant number of employees and a robust HR Department. However, if your daily requirement is heavy, such as your HR department being engaged in selecting around 100 employees in a month, then it becomes a very tiring and time-consuming process to "search for the best talent" from various sources.

Now comes the concept of "HR outsourcing." In this scenario, the company assigns its recruitment (Talent Search Process) to another company (Outsourcing Company).

How does the Outsourcing Company Work?

1) The Outsourcing Company contacts its client for any recruitment needs.

2) If there is any recruitment requirement, it gathers a job description and talent specifications.

3) The Outsourcing Company then searches for talent from various sources, such as consultants and job sites.

4) The Outsourcing Company contacts the identified talent.

5) The talent is then referred directly to the client's HR department.

This process saves valuable time.

This is what I know.

Thank you.

Thanks for the information. As you mentioned, HR personnel should consider whether to outsource the recruitment function based on their current workload with other HR activities, which are more departmental or internal factors. However, do you think there are some external factors to consider before making any of these decisions? Will the economy, other departmental considerations, organizational culture, and other factors affect such decisions?

You may be surprised by the level of outsourcing happening. Many organizations only have one manager for the organizational perspective, and most other tasks are outsourced.

Regards,
Arif

Depending on the organization and industry, the perception of HR outsourcing varies. Additionally, there are limitations to what aspects of HR outsourcing can be effectively carried out. When it comes to benefits and plan administration, a significant portion of these functions can indeed be outsourced. However, the question arises - how can Employee Relations issues be outsourced?

Cheers!
Rekha

Yes, you are right about the current economic outlook and current HR practices. However, nothing is impossible. As you mentioned, could employee relations be outsourced? Yes, why not? Activities such as attitude surveys, employee handbooks, company publications, labor law compliance, as well as labor relations could be outsourced. This way, the HR department can focus on core competencies by eliminating non-core competencies.

Additionally, not all HR managers are well-versed in employment or labor laws. Therefore, they can always outsource these tasks to someone else. The same applies to labor relations; HR may seek vendors or professionals to help bridge the gap between management and employees instead of investing time and money into developing such systems.

In conclusion, HR can concentrate on what truly requires attention.

HR Outsourcing

Other reasons employers choose to outsource recruiting include a need to improve recruiting processes, reduce a high turnover rate, control rapid growth, or address seasonality that makes it impossible to keep up with hiring needs, develop a competitive advantage, and coordinate recruiting and onboarding.

Reasons to Outsource Recruiting

1. Reduce Costs
2. Focus on Core Business
3. Improve Recruiting Effectiveness
4. High Turnover Rate
5. Rapid Growth
6. Competitive Advantage
7. Coordinate Recruiting and Onboarding