What is Recruitment Process Outsourcing & Why should you Outsource your Recruitment Process

Hi, in today’s blog we are going to do a deep dive in to the aspect of RECRUITMENT and why should you outsource your RECRUITMENT Process?

Let’s start by understanding what recruitment all is about. Recruitment refers to the overall process of attracting, shortlisting, selecting & appointing suitable candidates for relevant jobs (either permanent or temporary) within an organization / company. Recruitment also refers to processes involved in choosing individuals for unpaid roles. Managers, HR generalists & recruitment specialists may be tasked with carrying out recruitment activities, but in some cases public-sector employment agencies, commercial recruitment agencies, or specialist search consultancies are used to undertake parts of the process. Internet-based technologies such as ATS’s, job sites, social hiring tools support all aspects of recruitment have become widespread.

At Multi Recruit we follow a scientific methodology in terms of our hiring process.

So, lets deep dive and understand what the recruitment process consists of generically in other organisations.

1. Job Analysis / Job Feasibility Study
2. Sourcing
3. Screening & Selection
4. Job Offer
5. Notice Period & Joining

 

1. Job Analysis / Job Feasibility Study

Job analysis & Job feasibility Study consists of the process to identify the content of a job in terms of activities involved, attributes or job requirements needed to perform various activities. Job analysis provides information of organizations such as the company profile, which in turn helps to determine which employees are best fit for specific jobs. Through job analysis, the Hr / Recruiter needs to understand what the important tasks of the job really are, how they are carried out, & the necessary qualities and Skills that are needed to complete the job successfully.

One of the main purposes of conducting job analysis is to prepare job descriptions and job specifications which in turn helps create the Job Feasibility & hire the right quality of workforce into an organization & is often used to gather information for use in personnel selection, training, classification, and/or compensation.

A few important aspects that needs to be considered while conducting feasibility of jobs would be:

• Location
• Salary
• Experience
• Skill sets
• Roles & Responsibilities
• Job function
• Industry
• Job function
• Perks & Benefits
• Company profile
• Company size & Nature of business

 

2. Sourcing

Sourcing focuses on the identification, assessment & engagement of candidates through proactive recruiting techniques. Sourcing is the use of multiple strategies to attract or identify candidates to fill job vacancies.

It would involve internal and/or external sources such as:

• Print & Online media
• Job portals & Job sites – Naukri, Monster, Times, Shine, Indeed etc.
• Job Aggregators – Indeed, Jooble & Trovit
• Social Recruitment Tools
• Local or national newspapers
• Social media sites like Facebook, LinkedIn & Twitter
• professional publications & Sites such as GIT HUB & QUORA

Alternatively, employers may use recruitment consultancies or agencies to find otherwise scarce candidates—who, in many cases, may be content in the current positions & are not actively looking to move.

At Multi Recruit we follow the below Process of Souring to Joining.

3. Screening & Selection

Screening is the process of determining whether a candidate is qualified for a role based his or her education, experience, & various other information captured on their resume or during the interview process. It’s a pattern matching between a job’s requirements & the qualifications of a candidate. The goal of screening resumes is to decide whether to move a candidate forward to various rounds of interviews – usually onto a Technical interview – or to reject them.

A lot of technology innovations are being used to assess the candidate’s abilities and help the recruiters to screen and select the relevant candidates.

A few methods would be:

• Online Skill Assessments – psychometric testing & performance-based assessment
• Video Interviews tools
• AI based resume Screening Bots
• Hackathons
• Online Job fairs

 

4. Job Offer

A job offer is almost the final stage in the job search process. A job offer is an invitation for a potential employee, whether she has applied for a job to become an employee in your organization. The job offer contains the details of your employment offer. It generally sketches out the terms & conditions under which the employment is offered to the prospective employee. This includes CTC ( cost of the company ) ,Net salary & Gross Salary , Incentive Structure ,Tax structure ( ESI , PF , Gratuity ) , Benefits, Designation ,the reporting manager’s name & title , The job offer also can cover the expected work hours, the desired start date, & provide additional details that are important for the prospective employee to know such as the company policy , terms and conditions of the job offer.

 

5. Notice Period & Joining

This would be the final stage in the job search process. When a candidate is about to leave a company or an organization and join a new organisation based on the offer given. Notice period is an extended day of requirement which can be 15 – 30 to 60 days. as per the offer & joining letter given by company. In these days an HR can appoint another employee for the same designation. So, the work will not be affected. Benefit of leaving an organization by giving notice period and proper resignation that you can join the organization again in future or make sure that the organisation that the candidate has a good review and the company give a good character certificate at the time of leaving.

Companies who are hiring need to make sure that the Notice period are as low as possible so that the candidates can join your organisation immediately. Candidates who are already on notice period would be either already having an offer & are looking for a better opportunity that what has been offered to them hence shopping around.

Now, since you have a clear idea about what the recruitment process is all about let’s see why you should outsource these above processes and activities: –

1. Lack of availability of Great talent & Trouble Finding Candidates with great Skillsets – Yes, in this everchanging economy, organizations are finding it difficult to hire the right people to fill their open positions. Well, they don’t always have this problem because they are being too picky or because they want to pay a lower-than-standard salary. The organization is serious about finding great candidates & getting those positions filled, then outsource their recruitment process would be a great idea to source candidates in more places, to improve their employment branding, and/or work on the job descriptions for these positions.

 

2. Analyse current hiring processes & Hiring strategy – To improve current hiring processes, it is essential to analyse them for effectiveness & efficiency. A technology driven RPO can leverage analytics to assess how long it takes for your company to complete a hire or detect the obstacles in your hiring process to drive continuous process improvements and achieve optimum results.

 

3. Provide real-time analytics & Reports of recruitment initiatives – growing companies always keep track of how well their RPO partners are performing and try to understand whether the RPO’s efforts are actually paying off. RPO services provides real time metrics – such as applications processed, time to fill, and candidates hired. These metrics help you estimate the ROI of your RPO partnership.

 

4. Reduction in “Time to Hire” & allowing companies to focus on their Core Business- Not everyone is in the hiring & recruiting business, and even though most companies have some sort of recruiting function, sometimes it could cause a delays and take away a lot of their time. This is especially true for start-ups, who might not necessarily have someone on staff to just work on recruiting. Here, outsourcing the recruitment process helps them by allowing a consultant or a provider to do what they do best without taking away from what the rest of the company does best. When the recruiting process is outsourced to recruiting specialists, it doesn’t take anything away from core business activities and enables employers to find the talent they need without distractions from their day to day business operations.

 

5. Reduction of Turnover Rates – turnover rate is the percentage of new hires that leave within a designated period, say the first month or two of the position. A high turnover rate can hurt a company’s bottom line and is often a sign that there are bigger problems with the company’s recruiting functions, problems that aren’t necessarily fixed by increasing the salary or by doing a better job interviewing (although, both might help). In this case, an organization may outsource its recruiting to a recruitment process outsourcing firm to reduce the turnover rate as well as fix those bigger problems.

 

6. Level the Playing Field with competitors – Start-ups & SMB’s would be keen to outsource their recruiting activities because they don’t have the resources in-house to keep up with larger competitors. By outsourcing, they can level the playing field and not have to worry about losing good talent & not worry if the competitor did a better job of selling the position or offering better salary, perks & benefits.

 

7. Improve Efficiency – in today’s scenario, with a competitive global job market, ongoing skills shortage, & limited locations for recruiting, it is getting more & more difficult for many organizations to find qualified candidates or improve their recruiting effectiveness with in-house recruiting strategies. They may not be able to achieve recruiting process improvements with existing Team & when urgent recruiting needs start to back up, there is no good way to get caught up with hiring. When they outsource recruiting, they benefit from recruiting specialisation and the firms’ ability to reach more candidates, access passive candidates that they may not otherwise be able to fully engage and realize more efficient use of recruiting resources.

 

8. Current Recruiting process & Functions are not in control – Recently funded Companies and companies who are on the fast growth track, or face seasonal cycles, often have recruiting functions that are tough to handle. Fast-growing companies are having a hard time keeping up, while those that are seasonal may need to hire many people very quickly, only for the rest of the year to be slower. RPO helps these companies handle the fluctuations or could serve as a temporary solution to a temporary problem.

 

9. Cost Cutting & Cost Optimisation – Companies opt for an RPO to reduce their costs, such as labour & capital, Perhaps, unfortunately, they can’t justify the staff anymore. Or, the company has already spent too much money on head-hunters with high recruiting fees that they’re looking for a cost-effective way. Maybe the organization didn’t do a good job of creating a standardized approach to hiring, so outsourcing will provide the organization needed. Reducing costs rises to the top of the to-do list quickly. Besides labour costs, the costs related to recruiting activities include advertising on job boards, background screening, applicant tracking systems, and recruiting technology. These costs are all rolled into one when companies outsource recruiting.

 

10. Cost-per-hire is a key HR metric and when companies outsource recruiting to an RPO, cost-per-hire is often reduced along with time-to-hire because of dedicated recruiting resources. Other ways costs get reduced through outsourced recruiting include shared risk and streamlined processes. Passing the responsibility of expanded or shrinking recruiting needs to a dedicated outsourced recruiter eliminates employing unnecessary staff for recruiting or being short of staff when business spikes. When employers outsource recruiting, they streamline recruiting processes by assigning them to an outside firm (ideally an RPO), eliminating delays ad duplication of tasks, and paying for specific recruiting activities.

 

11. Coordinate Recruiting & On-boarding – Companies with unstructured recruiting & on-boarding processes can benefit from the services that RPO firms provide to integrate sourcing, recruiting, hiring, & on-boarding. When one department is recruiting, the hiring manager is responsible for hiring, and The HR staff performs on-boarding, interruptions in candidate experience & such recruiting in efficiencies can cause problems in other areas of the company. Productivity & turnover are among the first business areas to suffer when recruiting & on-boarding processes aren’t working.

 

12. A Better Employment Brand – The individuality of an organization as an employer, is defined by the way they brand themselves & when all the aspect of the recruiting process is working well, the employment brand becomes improved. If the candidate quality is good, that also looks better to other probable candidates for your company. If your hiring managers are happy and are working in a stable way with external recruitment agencies with a healthy recruit-to-hire process, then individuals who go through that procedure will only have better things to say about your company but also give an overall WOW experience to all stake holders..

 

13. Personalise the hiring processes for specific talent – This is the age of personalisation. The usual standardised recruitment strategy might prove ineffective in attracting highly sought-after talent. A strong RPO services providers can customize recruiting processes & create new processes quickly to target specific talent or meet specific objectives. They are specialists at their jobs and have experience in doing this.

 

14. Creation of Scalable recruitment processes – Hiring can be volatile & hectic & things can quickly go out of control. RPO helps you build a flexible recruitment process that can scale up or down effectively as the nature of business, market and industry fluctuates. Standardized hiring & recruitment processes based on best practices help you avoid nightmare scenarios of high demand & inflexible processes. For organizations that are at a rapid growth phase, the scalability provided by RPO is critical to meet growth targets without pressure.

 

15. A proactive “Talent Management Service” – In today’s volatile Domestic & International market, businesses cannot afford to freeze hiring activities when they do not need talent immediately. Prospective candidates are always observing your company online – even when you are not hiring. RPO can help you develop your employer brand, build talent communities & create a talent pipeline for future.

So, the value that RPO service providers offer goes way beyond costs & faster time to hire. They bring critical capabilities and resources that many organisations lack, ensuring sustained hiring success. By enhancing the capabilities of your in-house recruitment teams, RPO services providers act as your extended arm, enhancing your organisation’s ability to attract and retain top talent to drive growth. Keep in mind that outsourcing your recruiting is different from outsourcing your HR , as the latter may include benefits, compensation, employee & Employee relations, & legal issues as well as the recruiting process & Activities Although outsourcing your recruiting to a recruitment process outsourcing firm includes a cursory look and a revision of those aspects, outsourced recruiting typically looks at the hiring process from sourcing great candidates to the new employee onboarding process. When companies outsource recruiting, it’s usually in direct response to specific business needs. So, are you looking at outsourcing your recruitment process?