The continuing pressure on the performance and efficiency of Human Resources creates an enormous support for the recruitment outsourcing. The HR function without the operational recruitment processes can reduce its workforce, and it can focus on the strategic HR agenda. HR can manage and drive the strategic recruitment processes, and the external outsourcing provider can follow defined recruitment processes. The outsourcing is a common business solution of using the specialized provider, which has expertise in the area allowing minimizing investment of the organization. HR never outsources the core HR agenda, but it outsources the operational part of the business.
The recruitment outsourcing provider runs and manages the recruitment processes like the job posting, collection of job resumes for job vacancies, prescreening, phone job interviews, job interviews including scheduling, communication with job applicants and the on-boarding process for the organization. The organization defines the scope of provided outsourced services and defines the key performance indicators, which have to be met to ensure the quality of the outsourced recruitment process.
The organization has to meet several conditions for the successful and efficient outsourcing of the recruitment process. The recruitment and staffing has to be clearly defined, described and efficient. The organization needs to define clear boundaries and roles and responsibilities in the recruitment process. The outsourcing is not the way for the optimization of the process. HR has to handover the to-be process, which does not need many changes, adjustments and improvements.
The organization decides about the scope of outsourced services, and the vendor has to design the solution. Each organization has the unique set-up of processes and procedures; the vendor needs to adapt the generic solution as it covers all needs of the organization.
The organization needs to drive the strategic part of the recruitment and staffing. The vendor will provide feedback and results of the measurement, but the organization has to approve all changes. Many changes can have a significant impact on the cost of the service; the company has no full freedom in improvement introductions.
For most companies, the recruitment and staffing is not the essential strategic HR area. The organizations are mature; they do not grow rapidly. They need to focus on replacements of leaving employees. They have strong internal development structures reducing the need of the daily focus on the recruitment of top talents. The organization with the strong support of the succession planning and the internal recruitment can outsource the recruitment process as a non-strategic HR process.
The outsourcing has several benefits for the organization (for details see RPO Benefits):
- No responsibility for the daily issues in the recruitment process
- Clear recruitment KPIs defined for the service provider
- No loss of capacity focused on the daily recruitment activities
- No need to invest into the development of recruitment skills and competencies
- Potential savings resulting from the scale of the business
However, the outsourcing of the recruitment has some risks (for details see RPO Risks):
- No control over the processes
- Additional costs being reimbursed
- Weak Terms and Conditions not allowing the proper management of the service provider
- Weak understanding of the corporate culture and the damage of the HR Recruitment Marketing
- High turnover and fluctuation in the recruitment team
- Indirect communication
- No development and improvement implemented
The recruitment process outsourcing does not mean that the process will run without any interventions. The company has to manage the vendor, and it has to report all mistakes and failures in the process. The outsourcing relationship is a highly sensitive business relationship, as both partners see all details about the performance of the process.