Recruitment Process Outsourcing- Meaning And Benefits

What does Recruitment Process Outsourcing mean

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When a company entrusts the responsibility of the internal recruitment process of one or more Departments or the entire company to an external agency, it is termed as Recruitment Process Outsourcing. All the activities related to employee recruitment and management like calling potential employees for interviews, conducting interviews, screening the candidates for suitability and eventually hiring are handled by the external parties.

Recruitment Process Outsourcing is a type of Business Process Outsourcing. It involves Total Outsourcing i.e. all the processes related to recruitment are transferred for a long and undefined period. The external agency assumes the ownership and responsibility of the entire process of hiring employees. It is different from Occasional Recruitment Support where only an external agency is only hired for a temporary or contingent period. There is no element of responsibility transfer and it is more in the nature of buying services from a third party.

Advantages of Recruitment Process Outsourcing

In the current times of specialization, it is prudent for companies to focus on their core compatibilities and transfer the comparatively non-productive and time consuming activities to external agencies which specialize in the same.

Recruitment Process Outsourcing leads to a reduction in the companys time to hire employees and also ensures that the quality of employees is high.

It can also lead to significant reductions in cost if effectively managed. The company management and the external agency have to keep an active association with each other to ensure that all the requirements are met with the best possible solutions.

The external agency is highly specialized in its field of operation, which leads to avoidance of investment of any resources of the company to do the recruitments. It leads to reduction of fixed costs as well as conversion of fixed costs into variable costs by paying the agency on a transaction basis.

Recruitment Process Outsourcing also ensures that the necessary legal compliance is done with ease.

A company with an efficient process of hiring employees helps build a positive image in the industry and makes the company a preferred employer in the eyes of potential employees. This is an indirect benefit of the Recruitment Process Outsourcing.

Possible Risks

The company which wishes to use Recruitment Process Outsourcing must compare the possible benefits of the two possible options vis-a -vis the possible risks and costs before opting for a change in the course of action.

The company must ensure that the agency hired to do the work on behalf of the company must be reputed and competent to do the job. It is possible that an external agency calls itself a Recruitment Process Outsourcing agent, but doesnt have an effective structure of working that will be beneficial to the companies availing its services. A thorough screening process must be undertaken to select the best possible agency from all the available options in the industry.

Recruitment Process Outsourcing also leads to a significant dependence on the external agency for a critical part of the companys operations. Due care must be taken to have measures to preempt possible disruptions that may result due to the dependence.

by: Ruby Sahiwal

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