fbpx
updated 5:50 PM CDT, Aug 11, 2019
HOT NEWS
What is the difference between purpose and meaning?
Why is the focus on the human element important now?
Amendment to EEA Regulations: New format for EEA4
Separation of disciplinary enquiries into two parts
Protection of Personal Information Policy
Influenza Vaccine Consent Form
The difference between a work practice and a term and condition of employment
Disconnected from global trends? The right of employees to digitally disconnect
Right to disconnect
Lots of young South Africans aren’t going to technical colleges. What can be done
A+ A A-

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.)

 

Advertising

 

Equal opportunity

Equal opportunity R2500

Screening of CV’s

 

Skilled

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

Skilled -  time wasted R8000

Co ordination of meetings

 

Skilled

Skilled – time wasted R2000

Meeting to interview already screened  candidate

 

N/A

Skilled R2000

Declining those unsuccessful

 

Skilled

More difficult due Employment Equity Act R1000

Credit/education/criminal/ID and other search

 

Completed on your behalf

Generally not done

HIGH RISK

Culture fit

 

Depends on knowledge of company

Highly skilled LOW RISK

Guarantee

 

3 Months

None R10 000 (Risk in starting the process again)

Opportunity time cost

 

N/A

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.

Gary Watkins

Gary Watkins

Managing Director

BA LLB

C: +27 (0)82 416 7712

T: +27 (0)10 035 4185 (Office)

F: +27 (0)86 689 7862

Website: www.workinfo.com
Login to post comments

HR Associations