Why Do Companies Choose Consultancies Over In-House Recruitment Teams? Let's Discuss!

Hi all,

Why do companies outsource their requirements to consultancies even though they have a separate department for recruitment and access to corporate job sites?

Kavuri :)

Dear Kavuri,

Companies usually outsource employees for positions such as receptionists, office assistants, recruitment officers, etc., for the following reasons:

1. The core competency of the employee is different from the company's business philosophy.
2. The attendance of that particular employee is vital, and his/her absence causes disturbance in job flow. In this case, a replacement is opted from the consultancy.
3. To eventually retain the best workforce, outsourced employees whose job performance is not satisfactory can be easily replaced through the consultancy.
4. When the employment is only for a short period.

Dear Kavuri,

In the present-day scenario, companies do outsource their requirements to consultancy services even though they have access to corporate job sites as well as existing recruitment staff/departments. The reasons vary from company to company, but in general, the following are the reasons for the above.

Recruitment is a lengthy process. If you follow the process of calling for applications through the publication of requirements in newspapers or weekly magazines, it involves several sub-exercises, such as:

a) Selection of Newspaper/magazine.
b) Designing of Advertisement.
c) Contents of the advertisement.
d) Language to be used.
e) Font to be used.
f) Assessment of circulation of the newspaper or magazine.
g) Cost of Advertisement, etc.

Apart from the above, there are other hidden factors that usually put a company in a difficult situation if they follow the above procedure. These include:

a) Waiting for responses within the mentioned time in the advertisement.
b) Sorting through potential candidate applications.
c) Preparation and dispatch of interview call letters.
d) Contacting senior officials for undue recommendations.
e) Pressure from various sources.

Furthermore, arrangements must be made for candidates regarding their office seating, lunch, hotel facilities, etc. Even after that, there is no certainty of how many candidates will appear for the interview.

This time-consuming process has been taken over by consultants specialized in this field. When you present your requirements to consultants, you become very specific. Your needs are summarized in concise terms. For instance, when we convey our requirements, we specify to the consultant:

a) Candidates required for the Post.
b) Qualifications and Experience required - No. of years.
c) Exposure to a specific field or from a specific field.
d) Experience in a particular type of company/trade.
e) Age group.
f) Salary range.
g) Number of candidates required for interviews on...

In this scenario, the consultant handles much of the company's work. The agency conducts preliminary interviews and forwards only candidates who fit the requirements. You then receive candidates on a specified date for the final selection among those shortlisted and recommended by the consultant.

It appears easy, and indeed, it is.

Another reason may be that the manpower available for the above exercise is not very competent or trustworthy. Management aims to save time and complete the recruitment process with candidates from specific trades/fields. Consultants are specialized and have extensive databases, taking care of every requirement. It is cost-effective and sometimes guaranteed for a specific period by some consultants. It streamlines all the sub-exercises involved in recruitment, saving time and effort for seniors. Consultants can provide the latest industry trends and valuable knowledge.

I believe these are common reasons for companies to approach a consultant.

Regards,

Anil Anand

Dear Anand,

Thank you very much for providing valuable information. Anand, can you tell me how long a consultant can wait for feedback from clients regarding the profiles they have sent? I am asking this question because I work in a consultancy. Some clients never provide prompt feedback; sometimes, it takes them 3-4 months.

Thank you.

Dear Kavuri,

Since you yourself are a consultant, you must understand the psychology of your client. Every individual works in his/her way, but organizations always work in goal-oriented ways. I suggest you consider the following:

1. Every requirement forwarded to you by a client needs to be evaluated seriously. Be thorough and specific about the requirement.

2. Visualize the requirement and the person who will handle the job.

3. Basics of the job profile must be clear to you before you proceed.

4. Discuss the requirement with your client briefly but specifically.

5. Organize your data bank so that only matching data is available.

6. Provide information to your client in a way that maximizes output and minimizes time.

7. Avoid forwarding vaguely matched resumes as it gives a bad impression and affects credibility.

8. If you do not receive a response from the client, initiate a discussion. Assist in resolving any difficulties to help the client focus on other issues.

9. Make the client dependent on your services and expertise while ensuring you stay updated.

10. Consider conducting preliminary interviews at your office premises and offer candidates good interview tips. Remember, they are your product, and your earnings depend on them.

11. If your client is unresponsive, follow up regularly. Staying in touch and providing excellent service are key marketing strategies. With all these components in place, your product can sell like hotcakes.

Good luck,

Anil Anand

Understanding RPO (Recruitment Process Outsourcing)

It seems you are talking about RPO (Recruitment Process Outsourcing). Let me explain their work briefly. RPO becomes a partner in recruitment. There are general steps:

- The RPO team sits with the employer to decide on JDs (job descriptions).
- RPO sources relevant candidates for the post (from portals, databases, referrals, etc.).
- RPO filters profiles as per pre-decided guidelines.
- Technical Interviews: RPO waits for the availability of the team from the employer to conduct interviews with filtered candidates. This is the bottleneck. However, nowadays, this problem is solved by interview outsourcing companies. Read to understand why to outsource interviews. Visit CANGRA Talents (https://www.cangra.com) to know their interview outsourcing solution.
- HR Interview: After technical assessment and filtering, the best candidates proceed to the HR round (conducted by the employer).
- Salary Negotiation and Offer Letter: RPO helps in salary negotiation with selected candidates and releases the offer letter.
- Optional Payroll Management: Some RPOs take employees on their payroll and manage their growth in the future. This reduces the employer’s responsibilities to some extent.

Hope you understand the process of RPO.

Benefits of Interview Outsourcing: https://www.cangra.com/why-to-outsource-interview.html