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In House Recruiting vs. Outsourced Recruiting….which is better?

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.)




Equal opportunity

Equal opportunity R2500

Screening of CV’s



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 -  time wasted R8000

Co ordination of meetings



Skilled – time wasted R2000

Meeting to interview already screened  candidate



Skilled R2000

Declining those unsuccessful



More difficult due Employment Equity Act R1000

Credit/education/criminal/ID and other search


Completed on your behalf

Generally not done


Culture fit


Depends on knowledge of company

Highly skilled LOW RISK



3 Months

None R10 000 (Risk in starting the process again)

Opportunity time cost



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

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