Outsourcing HR is one of the latest practises being adopted within many industries. With many HR functions requiring expertise or specialised experience, outsourcing gives businesses access to knowledge and skills that they do not have the need or budget to maintain in-house on an on-going basis. Cost reduction and improvement in efficiencies are usually the key determinants of a company’s decision to outsource some or all of their HR functions, however other factors include changes to labour laws and demographics, as well as employee relations.
Often, the most predominant challenges organisations face are people related. So it is understandable that recruitment is one of the most commonly outsourced components of HR. Outsourced recruitment can include attracting the right pool of candidates, culling candidates, phone screening and interviewing all the way through to offers of employment. Outsourcing offers organisations a structured approach to the entire recruitment and selection process, whilst allowing the fundamental power and decision making to remain within the organisation itself.
eRecruitment (the use of technology or web based systems to support the recruitment process) is an emerging trend that has enabled the recruitment process to become completely streamlined, paperless and much more efficient. These web based systems can be customised to provide control of all stages of the recruitment process and can be set up to cater to a business’ specific needs. Such systems are ideal for organisations who recruit often or in large volumes.
One of the many benefits of outsourcing HR, particularly recruitment, can be increases in employee retention, as allowing an expert to undertake the recruitment process on the business’ behalf means candidates can be more thoroughly and accurately assessed to ensure their fit in the role and workplace. Additionally, outsourced recruitment can lead to other benefits including reductions in company overheads, increased profitability and more efficient processes.