Learn How to Be Cost Effective with Recruitment Process Outsourcing (Even with High Turnover)

April 1, 2019 3:36 pm

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Recruiting the right people for your company is the key to a company’s growth. With tough competitions ahead, companies are constantly exploring to minimise their costs. The key is how can we minimise manpower cost efficiently? 

Here’s a tip: Outsource the recruitment process

“Recruitment Process Outsourcing (RPO) is a form of business process outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider. An RPO provider can provide its own or may assume the company’s staff, technology, methodologies, and reporting.” – Recruitment Process Outsourcing Association

By engaging an external firm for Recruitment Process Outsourcing, here are the reasons why you should be using RPO and attain a better cost efficiency!

#1 Man-hours spent on hiring will be passed on to the outsourcing firms

By engaging a recruitment outsourcing firm to handle all your recruitment responsibilities, it will greatly increase the productivity of recruitment, allowing the HR team as a whole to better focus on higher level tasks.

Think about the number of hours that an HR professional spent on getting suitable candidates, followed by the interviews and follow-ups. The man-hour spent on this is costly.

Instead, should this be outsourced, this cost will be passed on to the outsourcing firms, reducing the man-hours required largely. The overall cost which you will be spending on the hiring of a role will, thus, be greatly lowered.

#2 Quick reaction to volatile manpower needs

The hiring trend is like a parabola curve.

When the business is expanding into another product category or region of the world, recruiting needs may suddenly spike, otherwise it is at its lowest.

By outsourcing the recruitment function allows a company to pass along the problem of getting staff quickly when there is a surge at short notice. By having the right manpower size for their business needs, it will allow the organisation to have better growth at a lower cost.

In fact, the HR personnel that is in charge of recruiting will be under lesser stress should this be outsourced.

#3 Reduced Cost Per Hire

Time and again poor hiring decisions and poor recruitment process eventually generate huge operational expenses. 

Cost per hire is defined as the sum of all recruiting costs divided by the number of hires in a specific time period. This is the distinct imperative metric that companies and HRs should be measuring, in order to ensure their recruitment strategy is on the right track.

Should companies outsourced their recruitment process, there will be a consultant who will be looking at the recruitment process and workflows. These RPO experts are capable of reducing these costs, based on the best practices of recruitment and the hiring history of the company itself, enhancing efficiency and reducing the cost per hire as a whole.

So, what are your priorities as a business owner or an HR professional? Being cost effective? Growing the business at an exponential rate?

Why not, tap on the recruitment process outsourcing bandwagon and manage your recruitment resources more efficiently? 

Payboy is a highly versatile and mobile Human Resources Management System that gets things done anywhere, anytime. We offer integrated solutions that will help you prevent your employees from being burnt out. Check out our Recruitment Process Outsourcing Service which gives you only the best candidates today!  

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This post was written by Payboy