A company’s human resources department fulfills a variety of roles, which can be expensive and time consuming, such as hiring, on-boarding benefit administration and development. Some opt to outsource one to several of these tasks in order to reduce costs. For example, PricewaterhouseCoopers estimates that outsourcing HR administration can save from 15 to 25 percent of the department’s costs.
For a small business, an entrepreneur can spend nearly 40 percent of their time handling HR tasks, which could significant slow the growth of the business and revenue.
It can be difficult for HR departments for businesses of all sizes to handle all of the tasks involved in employee management.
According to the Society for Human Resource Management, the average time frame and cost to a company with 1,000 or more employees for a new hire is 43 days and $4,285, respectively, and for a smaller company with 1,000 employees or less, the figures improved to 29 days and $3,079. Hiring a recruiting company improved both figures to only 28 days and $2,958.
Saving money is a key reason to hire a recruiting agency to handle hiring and administrative costs. It can also help because the third party has a stake in performance and may deliver a better product. Employer turnover costs businesses an estimated $11 billion a year.
Having a specialty area, such as IT and engineering, legal assistants and medical staffing can significantly improve hiring decisions, also, because concentrating on a particular field or role type can improve the level of excellence with each transaction. A specialist can improve your bottom line.
Your organization could benefit from allowing an organization to evaluate your hiring problem and consult with you about potential solutions. A collaborative approach with a recruiting team and an existing HR department can also be used for most optimally solving the obstacle preventing you from achieving your employee management goals.
A recruiting agency also may have a different pool of candidates to choose from, which can add to the possibilities for finding the correct candidate for a role.
There are many advantages to hiring a recruiting agency, both financial and quality of services that can handle your human resources needs.