In House Recruiting vs. Outsourced Recruiting….which is better?
- Written by Gary Watkins
- Published in articles001-100
In House Recruiting vs. Outsourced Recruiting….which is better?
By Tracey Lander
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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Gary Watkins
Gary Watkins
Managing Director
BA LLB
C: +27 (0)82 416 7712
T: +27 (0)10 035 4185 (Office)
F: +27 (0)86 689 7862
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