10 Reasons to Outsource Talent Recruitment
Outsourcing talent recruitment is steadily growing in popularity. It is a highly beneficial practice that is also referred to as Recruitment Process Outsourcing (RPO). It means that a company hires experts to manage its talent acquisition on a regular or project basis.
The global business process outsourcing was estimated at $261.9 billion in 2022. And it is expected to grow by over 9% a year by 2030. In this article, you’ll learn about the main reasons why professional talent recruitment agencies are in demand and what such cooperation entails.
10 Reasons to Outsource Talent Recruitment
1. Higher Quality of Hire
One of the main reasons why businesses all over the world decide to outsource HR functions is that such cooperation improves the quality of candidates found. An expert talent recruitment consultant or an agency knows exactly how and where to find professionals that perfectly meet your specific needs.
Outsourcing provides access to a huge talent pool and the most efficient hiring techniques and strategies. This is particularly important for tech talent as an in-house team might not be qualified to vet the hard skills and competencies of candidates fully.
2. Faster Process
Another reason to look into outsourcing talent recruitment solutions is to speed up the hiring process. It is achieved because of two main factors:
- Your internal team focuses on the core of their responsibilities without being distracted by new projects or growing needs;
- Professional recruiters are extremely efficient in what they do as it is the core of their duties.
3. Cost Saving
The next major reason for recruitment talent sourcing is that it is cost-efficient. Often the case, it is more affordable than doing it on your own. Because it is faster, time-to-hire reduces the cost-per-hire. Also, it gives business access to a worldwide talent pool. And it is not a secret that hiring internationally usually costs less than hiring locally.
This allows small businesses and startups to recruit top-level professionals without breaking their budgets.
4. Efficient Recruiting Practices
Recruitment is not an easy task, it requires advanced skills and specific knowledge to be done effectively. Credible agencies that offer RPO services master the most productive practices, including:
- Effective job posting and automated distribution;
- Detailed resume screening;
- Developing a network of specialists to choose from;
- Vetting candidates’ experience, skills, and competencies;
- Using innovative technologies like Machine Learning for job matching;
- Providing recommendations on candidates;
- Offering the best practices for attracting top-level professionals.
Also, excellent talent management and recruitment services promote a better experience for both candidates and businesses. They assist with onboarding, training, and employee retention.
5. Consistent Hiring Process
Inconsistency in the recruit-to-hire process can have significant negative effects. It might delay projects, expand budgets, or increase the risk of losing amazing candidates to competitors.
On the other hand, outsourcing talent scout recruitment offers consistency when it comes to all the processes involved. This creates stability and predictability in terms of employee acquisition and project management.
6. Turnover Rate Reduction
Inefficient recruiting is costly and time-consuming. It can set a lot of tasks back and become a major pain point for a company. The average cost for a bad hire is about 30% of the first year’s salary for a position. This means that if the yearly income of a specialist is $40,000, the cost of a bad hire will be around $12,000.
This is a huge number just for one insufficient recruitment choice. Such a bad decision can lead to an 80% turnover rate among employees, which is also not great for a business.
Collaboration with top talent recruitment agencies reduces the turnover rate and ensures maximum productivity in the hiring process.
7. HR Department Productivity
If a company chooses to outsource RPO, the internal HR department gets more time and resources to focus on its duties. This is a major way to improve the productivity of the team and increase employee satisfaction as a result.
8. More Diversity
Choosing to outsource as your recruitment solution promotes more diversity in the workplace. First of all, you get access to a wider pool of candidates. Secondly, you reduce potential internal bias. And thirdly, you get to work with talent search experts that have consistent and effective processes.
Diversity is important because it builds brand reputation, promotes healthier corporate culture, and offers financial benefits. According to statistics, diverse businesses experience 2.5 higher cash flow per employee and higher revenue (by 19%).
9. Trial Period
Expert tech talent recruitment agencies offer a trial period for new hires based on their payouts. This means that a company faces no risk of losing money on a bad hire. And it gives more opportunities to small businesses or companies that have to operate on a tight budget.
10. Fewer Risks
Taking all mentioned above, outsourcing RPO offers great efficiency with minimal risks. You get to work with experts, open a wide talent pool, and find the perfect match fast and cost-efficiently. Such partnership reduces cost-per-hire and offers transparent screening and vetting processes.
Benefits of Outsourcing Talent Solutions Recruitment
To sum up, why outsourcing RPO is a popular practice, let’s define the main benefits it offers:
- Consistent recruitment process;
- Fast delivery;
- Improved HR department productivity;
- Access to a wide and diverse pool of candidates;
- A strategic approach to your recruitment process;
- Access to industry expertise and the best tools;
- Lower turnover rate;
- Higher employee retention;
- Multiple channels for recruitment talent acquisition;
- Easy scalability.
Obstacles of International Talent Recruitment
It is worth noting that hiring in another country might come with specific obstacles. They should not discourage a company but rather serve as factors that need to be addressed appropriately.
Such obstacles might include:
- Evaluation of cultural fit might be more challenging. It requires a skilled and experienced recruiter, preferably with a background of work in the country of hire.
- Finding candidates with appropriate certifications, qualifications, and work permits. A credible agency will treat such issues in detail to ensure everything is aligned with local and international legislation.
- Attracting talent and increasing job acceptance rate. Recruiters need to present the company effectively and help candidates with relocation and understanding the benefits of the employer.
- Provision of face-to-face interaction. This can be achieved by partnering with an agency located in the country of hire.
A successful example of addressing all potential issues is Mobilunity’s recruiting services from Ukraine for Japan. With more than a decade of experience in talent recruitment, Mobilunity has successfully expanded the internal team of Vinyl Music Service. As a result, the company received a dedicated team of professionals that scaled up from 1 to 5 in one year and a half.
Another Mobilunity partner from Japan is an Innovative digital agency that needed an experienced server-side application engineer. Mobilunity found 209 potential candidates, received 27 CVs and interviewed 11 of them. After that, the team shortlisted 5 best-suiting applicants for the client. As a result, the company was matched with a perfect specialist for their project.
Mobilunity is a Reliable RPO Provider in Ukraine
Mobilunity is a Ukrainian company that offers RPO services to international businesses since 2010. Our team of experts ensures consistent and fast delivery as well as high-quality hire.
We offer two cooperation models:
- Pure recruitment service if you need a couple of positions to be filed;
- Sourcing dedicated recruiters if you need constant cooperation and there is an instant flow of vacancies.
We’ve already partnered with 40+ companies from different countries, including OnTrack Retail (UK), Pafin (Japan), ServIT (Sweden), Codename (France), Buttonorder (Germany), and 3joueur (Canada). And we are ready to find the best talent for your unique business needs.