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In-House Recruitment Vs Outsourcing – Which Should You Choose?

In theory, businesses have two main choices when it comes to handling their recruitment. They can either manage the process in house or outsource the work to a recruitment agency.

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In practice, however, businesses with a large employee base and regular recruitment needs end up using a mixture of both, with an in-house HR team supported by one or more agencies. The choice, therefore, isn’t in-house recruitment or outsourcing, but how to balance in-house costs and agency spend to create the most cost-effective hybrid model.

As an HR manager, it can be difficult to work out which option generates the best results. While outsourcing can save time and reduce the need for as many ‘bums on seats’ in the HR office, the costs can quickly add up, and you sacrifice the same level of control you would have with in-house recruitment. Let's consider five key things that you should be looking for when balancing your in-house and outsourced recruitment functions:

1) Time-Saving Capabilities

Recruitment should be carried out in as speedy and efficient a manner as possible, to reduce overall spend, and so that roles aren't left vacant for long. Outsourcing some or all of the work to an agency or managed recruitment partner could help you to reduce your time to hire. However, you could also use the latest recruitment management software to help you streamline and automate your in-house processes.

2) The Ability To Keep Costs Low

Building an in-house HR team can involve a significant financial outlay and you'll also incur costs when attracting, recruiting, and onboarding new members of staff. If you use a talent management agency like Blue Octopus, however, you'll have a team of specialists that you can call on immediately for an affordable fixed fee, reducing your in-house employment costs.

3) Expertise

If you build an in-house recruitment team, they'll know your business inside out. This will help them to find the most appropriate candidates to suit the roles that you have available and the culture of your company. However, a reputable recruitment company will employ experts in various areas of talent management, so you can attract the type of people that you need with ease.

4) The Opportunity For You To Retain Control

When you carry out your recruitment in-house, you'll be able to check that every task is performed to perfection. You won't need to worry that a third party's actions could damage your brand's image. However, if you work with a trustworthy talent management company, they'll tailor their services to suit your requirements and communicate with you regularly so that you're always in control. In this way the functions of your in-house team are supported by an outsourced partner, rather than supplanted. Targeted outsourcing increases the productivity and value of your team, allowing you to spend resources on the strategies that most increase efficiency and staff retention.

5) Talent Pool Creation

Established recruitment agencies usually have existing talent pools that you can tap into, making the process faster and easier. However, if you depend exclusively on recruitment agencies, you will never have the talent pool in-house to draw upon should you decide to engage in in-house recruitment. This is one of the main reasons that businesses grow to become dependent on recruitment agencies.

While it’s convenient to draw on the accumulated networks of recruitment agencies, it’s also possible to create your own talent pool using cost-effective talent management software and dedicated careers microsites. This can be leveraged alongside your agency partnerships to give you even more choice when seeking talent.

How Blue Octopus Can Help

Different companies have different recruitment requirements, so the most appropriate option for your business will depend on its unique needs. However, you could find that the ideal solution is to employ in-house staff while working closely with a talent management agency.

At Blue Octopus, for example, we can conduct managed recruitment campaigns on your behalf, giving you the benefits of outsourcing your recruitment activities while remaining firmly in control. We can also provide you with access to Octo, our user-friendly talent acquisition software, and create a branded careers microsite for your campaigns if required. Please contact us today to find out more.

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