Benefits of Outsourcing Talent AcquisitionAsmaa Nasr
Outsourcing Talent acquisition is a wise business strategy with numerous advantages. This type of recruiting, also known as Recruitment Process Outsourcing, occurs when outside experts are hired to manage a company’s recruiting function, from the people and process to the technology platform and strategy.
The goal is to improve hiring performance in five areas, specifically efficiency, consistency, risk, expertise, time and money. Addressing these issues should boost productivity and profitability.
For this Nile Bits, a provider of IT Infrastructure Solutions to Mid-Market Businesses, all of these RPO benefits came into play. Their recruiting organization was decentralized, with hiring managers in each market. Following the implementation of a full suite of RPO solutions, our client:
– Decreased Recruitment Cost Ratio (RCR) by 33%
– Exceeded Time to Fill Goal by 9 Days
– Decreased Recruitment Agency spend by $1.1M
– Reduced Turnover from over 30% to 8%
More Efficient Hiring Practices
When a company has multiple employees working on recruiting but does not have an efficient hiring process in place, the results are unpredictable. As a result, an increasing number of businesses are turning to outsourced recruiting to streamline the hiring process from the ground up.
RPO teams are integrated into an organization’s talent acquisition team. Outsourcing talent can help you promote your brand while also providing candidates with a high-quality, consistent experience. RPO experts ensure hiring manager satisfaction and accountability for results by working within companies’ various environments and technology.
RPO search can also improve efficiency by leveraging technology platforms that improve speed and engagement for candidates and hiring managers throughout the hiring process. These resource-saving procedures frequently include:
– Automated job posting distribution
– Employment branding and marketing
– Talent network creation
– Machine learning and job matching
– Rapid delivery of a high volume of candidates
– Automated screening, sourcing, and pipelining
– Self-service for interview scheduling
– Assessments and testing
– Automated engagement throughout the hiring cycle, improving the experience of both the candidates and hiring managers
– Onboarding assistance, learning and development
Consistent Recruit-to-hire Process
Predictability is a lifeline in uncertain times. This case study of a business software company experiencing a lack of consistency and stability in their recruitment process is a prime example. As you can see, Nile Bits RPO was able to stabilize their processes and create a full-cycle recruiting model that they could consistently adhere to. Furthermore, the experience of our RPO team enabled the company to successfully recruit for niche positions.
RPO’s goal is to provide tools and technology as needed while also becoming an extension of a company’s team. With Nile Bits, this process-driven approach results in an average cycle time reduction of 15 days and a hiring manager satisfaction rating of more than 90%.
While outsourcing your recruiting functions to outside experts may appear intimidating or costly, the real risk is relying solely on in-house recruitment. As a result, you may be unable to scale quickly enough and at a low enough cost-per-hire to make meaningful recruiting decisions.
Because of this scalability, you can predict your costs based on the complexity of your needs rather than being financially obligated to a fixed cost all of the time. Whether it’s an Enterprise partnership or a short-term talent acquisition project, you only pay for the resources you require at the time. You also take fewer chances with the candidates you hire because, with RPO, you can be confident that your system works and produces high-quality employees.
Having an experienced talent outsourcing partner on your team is a best practice and essential to your success. It is critical to have a trusted partner on whom you can rely for insight and collaboration that extends beyond talent acquisition. Our experience translates to expertise for an outsourced recruiting firm like Nile Bits. Recruiters who support outsourced solutions have made a career out of finding great talent.
RPO recruiters are in the trenches every day, talking with candidates, so they understand the market. They can also work in a wide range of industries and position verticals, removing the need for you to train a recruiting team on specific job requirements.
This is also true in terms of pay and benefits. Our Outsourced Recruiting team, for example, was able to provide a customer with average salaries offered across five markets, allowing our client to be competitive in that area.
Every penny spent on experience is money well spent. In addition to finding the best talent, hiring experts can reduce hiring time and revitalize your hiring process. They can also educate you on markets, competitors, and other data that will help you compete for top talent effectively.
Save Time And Money
RPO frees up time and resources, allowing businesses to focus on more important initiatives. This is especially important as many businesses’ budgets are being cut, resulting in long time-to-fill, high turnover, and high cost-per-hire.
The time it takes to fill a position from job posting to offer is referred to as time-to-fill. When there is a high Time to Fill, hiring managers are frustrated, employees are overworked and less productive, and recruiting costs skyrocket.
RPO can reduce your Time to Fill by 30% through proper alignment, efficient sourcing, a streamlined process, and a balanced workload. You can learn more about the negative effects of long time-to-fill and the improvements that RPO can provide.
The cost of attracting top talent extends beyond monetary considerations. It also takes time and manpower, and it frequently comes at the expense of quality and onboarding/development programmes. But it doesn’t have to be that way.
Talent outsourcing through RPO can reduce cost-per-hire by 35% by identifying your goals, generating metrics, building a pipeline and employer brand, proper sourcing, and reducing turnover (detailed below). Check out our infographic to see how recruiting costs are affecting your company.
High turnover has a negative impact on your organisation in a variety of ways. When there is a high turnover rate, it has a negative impact on recruiting costs, employee morale, productivity, training costs, and the employer brand. Employee turnover is estimated to cost organisations between 100 and 300% of the replaced employee’s salary. Outsourcing the recruitment process can help overcome this recruiting barrier.
RPO through Nile Bits can identify and address the source of your turnover. On average, we have assisted clients in reducing turnover by 20%, resulting in significant cost savings in recruiting.
Get Started With RPO
Recently, a leading Orthotic and Prosthetic (O&P) Provider engaged with Nile Bits RPO services to address a decentralized, disjointed, and costly corporate recruiting structure. In addition, they needed to build an employment brand in a highly competitive labor market. The solution was a full-scale Recruitment Process Outsourcing solution with all of the benefits listed above.
Finally, our RPO strategy was successful in:
– Decrease Recruitment Agency spend by over $0.5M.
– Decrease Time to Fill by 22% from 52 to 41 days.
– Improve Hiring Manager Satisfaction from 85% to 92%.
RPO through Nile Bits can help a company’s recruiting department by providing innovative solutions that produce measurable business results. Leveraging RPO is a wise decision, with an RPO Customer Retention Rate of 93%, Hiring Manager Satisfaction Rate of 91%, average reduction in time-to-fill of 15 days, and average reduction in recruiting costs of 35%.