Last year, vacant positions were at a 17-year high; the unemployment rate at a low 3.9%. Across industries and at companies large and small, hiring teams are scrambling to find and attract the right applicants to fill their open roles.
Talent acquisition, the ongoing strategy for finding and hiring managers, leaders, and specialists, focuses on planning for challenging job markets like the one we’re currently in. A good talent acquisition approach helps companies benefit from a deep talent network and rigorous vetting that cuts down on time-to-hire, lowers turnover rates, and streamlines the entire hiring process. Companies seeking to thrive in a competitive job market should outsource their talent acquisition function to save money, reach more candidates, and diversify their workforce. Here are some good reasons why your business should outsource talent acquisition.
Improve the quality of your hires
A talent acquisition firm is well-versed in finding the best candidates on the market. Professional recruiters know where to look for candidates, what qualities make an individual most qualified, and how to approach even passive candidates. Put your recruitment in the hands of specialists: you would hire a marketing agency to design and run your advertising campaigns, so why would hiring be any different? Outsourcing your talent acquisition and recruiting function gives your company broader and deeper access to individuals with the right specialized skills and expertise.
Save money on recruiting costs
It’s estimated that the cost to hire a new employee can be over $40,000 per employee. And, if the new hire is a bad fit, the cost of making the wrong hire can be up to 2.5x salary. HR costs can go through the roof quickly, which is why working with a recruiting firm has an immediate positive impact on your bottom line.
“Besides labor costs, the costs related to recruiting activities include advertising on job boards, background screening, applicant tracking systems, and recruiting technology. These costs are all rolled into one when companies outsource recruiting. And it’s usually less than trying to conduct an effective recruiting campaign in-house,” writes one recruitment expert. Outsourcing your talent acquisition saves on hidden costs as well. The entire hiring process becomes more streamlined, targeted, and effective.
Keep resources dedicated to core business activities
Hiring and recruitment are two areas that can become capital-intensive and resource-heavy. For smaller companies that may not have the resources to support these functions, outsourcing may be the best option. Resources previously dedicated to the hiring process can be reallocated to core business functions – fueling growth, innovation, and serving the business’s customers and stakeholders. Outsourced recruiting allows a company to focus on what they do best while providing the support and talent to continue to achieve your mission.
Reduce employee turnover rate
There’s evidence to show that outsourcing your talent acquisition and recruiting leads to better hires – lowering the overall employee turnover rate. According to one study, 80% of employee turnover is due to bad hiring decisions.
“The various reasons behind bad hires include pressure to fill the role quickly, inability to find quality candidates, or lack of tools to pinpoint the right person. Companies should delegate recruitment to an organization that specializes in leveraging alternative hiring methods to find and vet ideal candidates,” writes one hiring expert. For companies seeking to lower their employee turnover, outsourcing talent acquisition could be the silver bullet solution.
Access talent from all over the globe
Perhaps the biggest benefit of outsourcing recruitment is gaining access to a broader range of candidates from all over the world. Companies are becoming globalized, seeking diverse talent as they expand their footprint. Recruiters at talent agencies have more experience working in different recruiting disciplines in multiple geographies than your typical in-house recruiter. If your company seeks to expand to a new location, talent acquisition firms offer a shortcut to the best talent on the market.
Expansion aside, remote work is becoming more widely accepted: more than 60% of companies had remote workers in 2018. Talent acquisition firms have a deep network of contacts, sourcing resumes from around the world to help firms compete in the competitive hiring environment. Outsource your talent acquisition and recruiting to realize the benefits of a diverse workforce, lower turnover, and streamlined hiring.
Michael is the Managing Partner at Elevate Talent, a recruiting agency that helps companies build their Go-To-Market and People Operations teams.