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Top 10 Things You Should Know About Outsourcing your Recruitment

What works for you, might not work for someone else; so here are some reasons you might consider outsourcing your recruitment:

  1. You will be hiring in bulk throughout the year, and you need people who match your corporate needs perfectly.

  2. Normally, paying a headhunting fee for large volumes will run your business into the ground - Instead, consider an RPO contract (Recruitment Process Outsourcing).

  3. This is great for filling roles quickly, but I wouldn't place my bets on top-tier quality. (Large Volume + Speed = low quality).

  4. Expert Recruitment Firms tend to have their software, procedures, and practices mastered. Getting a couple of their dedicated & seasoned team members will get your entire recruitment process flying off the ground in no time. Companies normally charge you: (Cost of wages, software, etc...) + (# of recruiters) + (% of the total cost for their revenue margin). *Normally between 20% to 30% of monthly cost*

  5. You have extremely niche skillsets missing within your team, and those skills are not easy to find.

  6. Outsource to expert Headhunters - These recruiters are a different breed of Talent Acquisition Professionals.

  7. Headhunters master search, research, boolean, competition salary analysis and they learn every detail about a candidate before they even call them for the initial screening call. (A seasoned headhunter can even tell if a candidate will get hired without ever talking to them). This process can take 2 weeks to 3 months... We do not advise rushing this process, as the results can be compared to a Christmas Miracle. (Low volume + patience = The next Elon Musk or Jeff Bezos)

  8. Headhunting rates vary depending on your region, the seniority, or the technical aspects of a vacancy. These rates could vary from 8.33% of the annual salary (one month salary), all the way up to 30% in Europe & the Middle East. In the USA, rates go anywhere from 15% of annual salary all the way up to 50%.

  9. If you are in a country where recruiters are only asking for 8.33%, consider yourself lucky. Real talk that most industry professionals never want you to know... The more you negotiate down the rate in the contract, the more your vacancy falls on their priority list. *Pro-tip #1: If you want your vacancy to have priority after negotiating the rate too low, make sure the vacancy is an easy one* *Pro-tip #2: If you have extended payment terms, only assign vacancies that are worth the effort for the Headhunting Firm*

  10. Although you are a valued partner, remember that cash flow is the blood of the business; so make it worth their expertise, expenses, effort, and time.

Parting messages for entrepreneurs & HR looking to outsource:

  • All in all, an RPO contract can save you tons of cash, and help you focus on strategic thinking while outsourcing the most 'tedious & time-consuming' aspect of Human Capital Management.

  • Headhunters are expensive, but they get you quality beyond your wildest dreams. Use headhunters wisely, as they can run up your closing tab pretty fast if you aren't prepared.

  • *Pro-tip #3: You can RPO one recruiter for seasonal and annual recruitment activities (no need for a long haul). Dedicated & seasoned recruiters for limited vacancies will get quality and volume - If you aren't putting them under too much pressure of course.

Signing out!

Group CEO & Head of Outsourced TA Services at SpartanSC

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