As a result of the COVID-19 pandemic, the global economy has seen unprecedented disruption. Businesses have had to go through rapid and rigorous transformations to be able to survive the economic upheaval. One obvious impact has been that businesses are a lot more careful with their spending in the face of continuing uncertainty. That also includes how businesses approach their talent acquisition strategies and recruitment processes. With a growing need to stretch already strained budgets and minimize inefficiencies, there is a lot to be said about outsourcing your direct hiring function altogether. This blog explores the benefits of doing so.
Outsourcing the Direct Hire Function
Almost all businesses have some form of a recruitment process. It can be a dedicated recruiter or an entire HR team. The problem, however, is that in-house recruitment limits your ability to consistently acquire high-quality talent. In-house recruiters can’t always deliver specialized talent for specific types of roles, such as a temp or a contact-to-hire position, as opposed to a permanent role. There’s also the added pressure of a hiring market rapidly growing more competitive. With the broad shakeup in almost every industry, you can be sure your competitors are already doing everything they can to snap up the best talent while it’s still up for grabs.
That means you need to explore more efficient avenues to acquire better talent, and one of those is outsourcing your direct recruitment function to a specialized third party like CGT Staffing. Here are a few key benefits all types of businesses stand to gain by outsourcing or augmenting their recruitment to an efficient staffing partner:
Drive Down Recruitment Costs
Recruitment costs are one of the first areas to examine if the pandemic is disrupting your cash flows. It is not just about the people you pay to hire workers; it’s also about the time and money spent on recruitment, such as posting adverts, arranging interviews, tracking applicants, and screening candidates.
All of these can eat significantly into your annual budgets, which can prove to be an inefficient use of funds. On the other hand, when you outsource the hiring function, all of these costs are combined and priced more efficiently than managing recruitment campaigns in-house. At the very least, it reduces the strain on you to manage competitive recruitment on top of all other business challenges.
Divert Resources to Core Business
The outsourcing of your business function does more than just help you to save costs. It also frees up resources that you can then divert to your core revenue-generating functions. Since you are more likely to be familiar with these functions that support functions like HR, you can oversee a much better and more efficient use of these freed-up resources. This in turn can help you generate more output, and earn more revenues on top of saving on your in-house hiring costs.
Reduce Employee Turnover
Employee turnover is corrosive in many ways. It hurts business continuity, and can frequently create bottlenecks in workflows. Talent gaps can hurt your business’s ability to innovate, adapt, and compete effectively. There is also the question of the added recruitment costs raised as a result of finding a replacement. Moreover, your credibility and appeal as an employer are impaired by significant turnover and replacement. In other words, your employer brand suffers greatly.
All of this can be avoided by outsourcing your recruitment function to skilled recruiters or a professional staffing agency. These professionals are able to source high-quality candidates and vet them to reduce the chances of them leaving. Long-term hires are growth drivers, so you can be assured you’re getting access to a better talent pool in a far more efficient way.
Gain a Competitive Edge in Hiring
It is no secret that employees are a key ingredient in helping businesses rise to greater success. The more talented your workforce is, the more likely you are to fight your way to a significant position in your industry or niche. Of course, for that to happen, you need to have access to a much wider and much more diverse talent pool than the one in your business locality.
Specialized IT staffing agencies, for example, can offer you access to talent from all over the country, not just your geographical proximity. With more talented workers, your business can benefit from their ability to adapt and innovate, as well as their competence and diverse experience.