Recruitment – bring the power back in house while significantly reducing costs
All functional areas in business are mandated to reduce costs to maximize profit and efficiency; HR is no exception. HR’s role in overall business strategy and people management has become more prominent than ever. Similar to other key areas of a business, HR is also commissioned with reducing costs and maximizing operational efficiency and effectiveness. Many companies have started to look at HR processes and the costs associated with external suppliers as a direct opportunity to reduce costs. One particular area under scrutiny is recruitment.
Businesses may spend multiple thousands well into six figures annually in external recruitment agency fees. Albeit, some positions can be very difficult to source and external recruiters can provide value in finding passive, hard to reach candidates. However, a reduction of even 25% of external agency fees by taking recruitment back in-house, can have a significant impact on the bottom line.
Agencies are successful because they maintain exceptional networks of passive and active candidates broken down by industry and skill. There is no reason that organizations can’t have the same success – the focus needs to be more on building an active candidate pool and less on filling positions as needed; being proactive as opposed to reactive. Organizations should post future positions to build a candidate pool and get to know applicants. Connecting with individuals that have expressed significant interest in working for your organization is very powerful and puts the control back with the organization and away from external sources.
In addition to the creation of a candidate pool, HR staff need to dedicate time to sourcing candidates while building the volume and caliber of within the pool. Talent “sourcers” are the go to experts for candidates that have a specific skill set or industry experience that is key to their organization. Dedicated in-house talent “sourcers” are proven to save HR significant recruitment expenses while providing more timely recruitment support.
Outside of a strong network of candidates, external recruiters have one additional advantage; the latest in social and recruitment technology. When moving to a strong in-house sourcing team, it’s very important to provide resources with the latest in technology. This does not have to be cost prohibitive. There are many tools such as LinkedIn, Twitter and Facebook that allow for connection with potential candidates, in some cases free of charge. HRMS technology also allows for robust data mining of candidates in candidate pools and the complete elimination of traditional administrative processes that in-house recruitment teams often have to manage. This allows in-house recruitment to focus on value added activities specific to talent acquisition and less on basic recruitment processes.
Leveraging HRMS technology, integrating with social media and building an extensive talent management pool, in-house recruitment teams can be as powerful as external agencies saving thousands of dollars and allowing the control back to the organization. Connect with us to learn how we can help!