Insourcing vs Outsourcing Recruitment- Which is Best for You

Everyone always loves to look at companies like Facebook, Google, & Apple to see what new techniques or tools they’ve put in play that we don’t know about yet.

Problem is, you can’t always look at the other guys because no matter how similar your fields may be, they are still a completely different organization with different expectations.

So when it comes to handling your recruiting, don’t feel like you have to go barking to the same agency that everyone else is using or even feel like you have to use an outside agency in the first place.

There are pros and cons to using an outside firm just as there is for building your own in-house team.

But how do you decide which is the best fit for you?

Read on to discover why you should (or shouldn’t) outsource your recruiting.

Insourcing Recruitment

Insourcing Recruitment

Keeping your recruiting in-house has a number of benefits for your organization. The most obvious is that you will have direct control over the process and have the confidence of knowing that every step is being handled to company standards.

Don’t get me wrong, professional headhunters are talented in what they do, but sometimes the strain of having to fill multiple spots with an incoming deadline may result in rushed emails, interviews, reference checks, etc.

You also have the benefit of performing your own performance tests to make sure that candidates are really able to do what they say they can.

Software tools like HackerRank are great for diagnosing skills, especially if you’re in the search for software programmers or developers.

Another huge benefit is that having your own team gives you the ability to better establish and build your own company culture. It also gives the candidate a clear idea of what they are getting into and will let them know early on if they’ll be a good fit.

You’ll also have a first-hand understanding of the types of personalities that mesh well with your company and can better evaluate whether or not the candidate would be a good fit.

Outsourcing Recruitment

Outsourcing Recruitment

With all of the advantages that come with having your own team, you may be wondering why anyone would go to an outside firm in the first place.

But let’s not forget what makes these agencies so popular.

Hiring a headhunter means reduced labor costs since you don’t have to hire any extra HR help. If you’re just starting out and don’t really have as much capital as the other guys, this can be crucial.

Also, certain agencies have the benefit of specializing in specific fields (IT, Creative, etc.) so they can bring in experience and extensive networks that can prove to be invaluable to your organization.

Recruiters usually have an entire catalog of talent that can be called upon whenever the right position opens up, so if you find an agency that specializes in your field, don’t hesitate to contact them to see what can be done for you.

This is especially true if you are in a highly specialized field where it’s hard to come across the right talent or experience levels that you’re looking for.

The time-saving capabilities are also huge for those that choose to outsource their recruitment. Recruiting is a very tiresome job that takes up a lot of man-hours, so giving your HR team some free time to focus on other important tasks is invaluable.

Lastly, an outside firm can use strategies or tools that you may not be aware of that could lead to a candidate that you wouldn’t have found on your own.

Which is Best for you?

Which is Best for you

Now that you understand what both of these can do for your organization, it’s time to make a choice on which would be best for you.

Small-and-medium-sized businesses (this includes start-ups and companies just starting out) should not shy away from hiring an outside firm for a number of reasons. The first being the obvious saved labor costs which are crucial for small organizations that are already stretched thin with expenses.

The networks that an outside firm can provide are also priceless for new companies that don’t yet have the name recognition to attract certain candidates. This is especially important when searching for C-suite level executives that are hard to attract. A firm that specializes in recruiting higher-level executives would be able to do some heavy lifting in areas most others can’t.

For larger, more established firms, staying with an in-house team may be the better choice in order to enforce your work culture and to ensure that the recruiting cycle is living up to company expectations.

Final Thoughts

Recruiting is one of the most important roles for any company, with weak recruiting, you won’t be able to attract the candidates that can take your organization to the next level.

Make sure to thoroughly review the points above in order to make a decision on how you plan on bringing in new employees.

At the end of the day, your bottom line starts and ends with the talent you’re able to bring in.

If you’re interested in software that gives you a better understanding of your candidate’s abilities, visit HackerRank to see what they can do for you!