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In
House Recruiting vs. Outsourced Recruiting….which is better?
By
Tracey Lander - Director – Workinfo Recruitment
In
a time when every company is looking for ways to save money and
resources, it is understandable that they might ask themselves:
could I save my company money if we conducted our own in house
recruitment and selection?
Some of the benefits of an in house recruitment process include
a thorough knowledge of the culture of the business and of
course no fee to pay. Naturally you need highly skilled people
who have enough time to co ordinate such a long process on
behalf of your business.
What is evident is that a huge amount of time goes into
recruitment, time that could be spent on more business
imperative practices.
If
we approach recruitment from an initial cost vs. the longer term
benefit cost we might find that the outsourcing of the
recruitment process holds huge merit. The benefits of
outsourcing include a focussed search of the market for
appropriate talent, screening the hundreds of CV’s that are not
aligned to your business requirement and sending you a short
list of handpicked applicants that are guaranteed to meet most
of your requirements.
Let’s compare the benefits of outsourced recruitment versus
conducting your own in house recruiting:
|
Recruitment action |
|
Outsourced recruiting |
In House Recruiting
Costs on average time |
|
Attraction of people looking for work |
|
Greater opportunity |
More tricky (maintenance of a website
etc.)
|
|
Advertising |
|
Equal opportunity |
Equal opportunity R2500 |
|
Screening of CV’s |
|
Skilled |
Average – time wasted R 6000 |
|
Declining of CV’s |
|
Skilled – no impact on company |
Average – Make the company look bad and
may affect loyalty of customer (i.e.: if the applicant
was a customer)
R 1000 |
|
Meeting and Screening of applicants |
|
Skilled |
Skilled - time wasted R8000 |
|
Co ordination of meetings |
|
Skilled |
Skilled – time wasted R2000 |
|
Meeting to interview already screened
candidate |
|
N/A |
Skilled R2000 |
|
Declining those unsuccessful |
|
Skilled |
More difficult due Employment Equity Act
R1000 |
|
Credit/education/criminal/ID and other
search |
|
Completed on your behalf |
Generally not done
HIGH RISK |
|
Culture fit |
|
Depends on knowledge of company |
Highly skilled LOW RISK |
|
Guarantee |
|
3 Months |
None R10 000 (Risk in starting the
process again) |
|
Opportunity time cost |
|
N/A |
2 weeks per job R12000.00 |
|
Potential Costs for a R300 000 per annum
position |
|
R45 000.00 (15%) in agency commission |
R 44 500.00 in direct costs to the
company |
Time and cost assumptions made in this table are meant for
illustration purposes only
It
really does become obvious from this illustration that
outsourcing your selection and recruitment process can save you
weeks of wasted time and effort. Maybe we are being penny wise
and pound foolish when it comes to placing these functions in
house?
The views expressed in this article are
not necessarily the views held by Workinfo.com or those
affiliated. |
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