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Outsource vs. In-House Hiring - Which is right for you?

Recruitment Process Outsourcing (RPO), also known as Outsourced Recruiting, is when an outside firm is used to manage your recruiting function, from the people and process to the technology platform and strategy. The goal is to boost your hiring performance. It is an overall business strategy that should positively impact productivity and profitability. Depending on their level of engagement, your outsourced recruiting team could write job descriptions, check references, help with employee branding, and screen candidates, as well as much more.

In-house hiring, on the other hand, may often be inconsistent, costly, and unpredictable. By outsourcing the whole recruiting process to an expert, you are able to free up your Hiring Managers’ and Human Resources team’s valuable time, giving them time to focus on your current employees, which also gives you the ability to predict what the recruiting process will look like in the long-term.

This predictability can also be seen in recruiting expenses through recruitment process outsourcing as opposed to in-house recruiting. In RPO, all your many hiring costs are rolled into a single cost, so you know what expenses are coming down the pipeline every month. In-house recruiting often comes with high additional costs, like job board posting, background check, and even time spent checking references.

An Outsourced Recruiting expert views their relationship with a company as a long-term, strategic partnership. This relationship has built-in accountability that ensures a consistent talent pipeline. Orion’s Recruitment Process Outsourcing team will become an extension of your team and will effectively and efficiently manage each element of a talent acquisition strategy, from requisition to onboarding.

Benefits of Outsource Recruitment

There are many benefits of Outsourced Recruiting. By taking care of every aspect of recruiting, company leaders are able to focus on their core business functions, while trusting experts to improve recruiting effectiveness, cut costs, reduce turnover, enable growth. All of these benefits add up to an impressive competitive advantage.

Focus on Core Business

When employees and leaders are focused on reducing costs as well as uncovering top talent, their many other responsibilities can suffer. Recruitment Process Outsourcing frees up your internal team to accomplish those other tasks instead of using their valuable time for a non-structured recruiting process.

Outsourced Recruiting is the answer to having too much to manage and not enough hours in the day to focus on the sourcing and recruiting process. And it helps your employees who may lack the time and bandwidth necessary to find the most qualified candidates to focus on core business functions.

Improve Recruiting Effectiveness

An inefficient recruiting process costs more than money. You lose time and people to a process that is decentralized and unorganized. One important metric when it comes to recruiting effectiveness is Time-to-Fill. Time-to-fill is the number of days it takes to fill an open position, from the opening of the position to an offer being accepted by a candidate. Hiring Managers experience frustration and employees experience an increased workload and lower productivity when time-to-fill is too long.

Check out this infographic, Improve Time to Fill with RPO, for an in-depth look at how choosing to outsource recruiting can shorten this metric by 30%. Recruitment Process Outsourcing does this by streamlining the process, effectively sourcing candidates, aligning the team, and balancing the workload.

Need to Cut Costs

Another reason a company may use outsource recruitment is to cut costs. Recruitment costs include candidate sourcing, recruitment technology, assessments, referral programs, to name a few. As these costs climb, other areas of your company can suffer. Your priority may shift from hiring quality candidates to lowering recruiting costs.

Through recruitment process outsourcing by Orion Talent, a business can lower recruiting costs by an average of 35%. This is done by utilizing a proper candidate sourcing strategy, building an employer brand, and developing a pipeline of candidates. Check out this Reduce Recruiting Costs with RPO Infographic to learn more about how outsourcing your staffing can reduce recruiting costs.

Turnover Rate is Too High

Employee turnover is a huge cost for any company. It is estimated that it costs between 100% and 300% of the salary of the person you are replacing to find a new employee. That can be considerable. Not only does high turnover cost a lot, but it affects employee morale and can damage your employer brand.

Increased employee retention is an important benefit of recruitment process outsourcing. As you can see in this infographic, Reduce Your Turnover With RPO, companies that outsource recruitment see a 20% increase in retention. Recruitment Process solutions get to the root of the problem causing turnover and fix more than the symptoms. By doing so, turnover decreases and retention increases.

Rapid Growth

Outsourced recruiting is incredibly scalable. So, when a company needs to hire 500+ employees in a short amount of time, recruitment outsourcing is the answer. Recruitment Process Outsourcing can meet high-volume, surge, and project hiring needs on-time and on-budget. An RPO team can scale up when needed and also scale down when your needs change, which is great for the bottom line.

It Allows a Company to Better Compete

As we have seen, organizations that don’t utilize outsourced recruiting often have a broken process. Recruitment Process Outsourcing gives companies a competitive advantage. While other businesses are struggling with mounting costs, high turnover, and poor hiring manager satisfaction, a company using RPO has control of their resources, process, technology, and people, while also being able to predict future recruiting costs and timelines. By establishing an attractive Employer Brand, developing a strong pipeline, and developing key talent metrics, people can focus on other parts of their business allowing them to compete on a higher level.

People also ask:

What is staffing and outsourcing?

In Recruitment Process Outsourcing (RPO), a company outsources an entire sourcing, recruiting, and hiring need or process to the experts at recruitment process outsourcing companies like Orion Talent. From the first requisition to the final hire, every placement is on the firm providing the service.

Staffing firms, on the other hand, are often a contingent service provider that focuses more on finding an appropriate candidate for an opening. While RPO providers can holistically address recruiting obstacles and fix them while acting as an extension of your team, staffing agencies often do not go beyond finding the right candidate and can leave deeper issues outstanding. Staffing firms are also usually limited to the recruitment part of the process, while negotiations and onboarding are often the clients’ responsibilities.

Ultimately, recruitment process outsourcing teams can brand themselves as your internal recruiters, which helps provide a seamless candidate experience, as opposed to a candidate being handed off once an interview is scheduled. Often a candidate will not even know that an RPO has been engaged.

How much does it cost to outsource recruitment?

Recruitment Process Outsourcing firms generally charge a monthly management fee, which includes management of the entire hiring process, including some transactional fees. This fee typically ends up costing 60% to 75% less than the cost of engaging a traditional staffing firm.

Is Outsourced Recruitment Right for You?

Outsourced Recruitment is right for most companies. Any business looking to design a measurable, effective, and productive hiring process that frees up their team to focus on their core business should take a look at Recruitment Process Outsourcing.

A global leader in temporary power discovered that Recruitment Process Outsourcing was right for their company. Struggling with the need to expand while juggling a high workload, the small recruiting team found that some requisitions went 90 days before being filled.

After turning to Orion Talent, the company was able to develop an efficient recruitment program that allowed for large-scale hiring for a variety of positions. Their time-to-fill was cut to less than 50 days; their interview-to-hire ratio rose to less than 3 to 1, and their candidate experience improved drastically. Download this case study to read more about the challenges and recruitment processing solutions this company experienced.

Still not sure Recruitment Process is Right for Your Company?

Take this multiple-choice quiz about your hiring goals, plans for achieving them, and what candidate sources and metrics are the most important for your organization. In 2-3 minutes, you can determine if RPO makes sense for your organization as a strategic business move. You can also check out this infographic, Is RPO Right for You?, to take a look at all of the benefits of Outsourced Recruiting in one place.


Learn more about Orion Talent’s Recruitment Process Outsourcing (RPO) solutions.

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