Why recruitment agencies outsource certain tasks

Outsourcing an organisations administrative tasks has become the best way to do business. It has been proven to effectively reduce costs, optimize efficiency and provide a means to gain access to expert industry knowledge. However, while the rest of the business world caught onto its benefits a while ago, by outsourcing call centres, bookkeeping, accountancy, and service desks, the recruitment industry is only just recognizing its potential.

It takes time and money to find the right staff for a business, time and money that could perhaps be better spent. Recruitment Process Outsourcing, or RPO as it is known, streamlines the process of recruitment, taking the task of finding new recruits from people who have other jobs to do, and targeting candidates who have the necessary skills to perform the role best. If an organization has many departments who carry out their individual recruitment drives, then RPO centralises the process, providing a consistent and predictable hiring process. This satisfies both the organization and the candidate equally.

Outsourcing recruitment means increased knowledge about the particular industry, the state of the job market, the structure of salaries, and the benefit packages offered. With current knowledge of the industry standard, a company can ensure that it looks attractive to high quality potential employees, and can hope to retain them.

Some organizations need to take on a great many staff only at certain times of the year, such as in the run up to Christmas. An outsourced recruitment process makes it easier to scale up and find a high volume of candidates, and scale it back down when the need lessens. They also have the time and experience to look at all aspects of the candidate to determine their suitability for the job, something time-pressed directors may not be able to do. This means they should only put forward a higher quality of candidate, which in turn has a knock-on effect in establishing the reputation of the company’s brand. An excellent employee creates a good impression on customers and clients, as well as signalling to future candidates the benefits and positive aspects of working for the organization.

Outsourcing may initially seem like a big expense, and a waste of money for tasks that could be accomplished in-house. While this may be true, the initial outlay will soon be recouped in the increased productivity of existing staff, resulting in higher revenues, as well as the increased expert skillsets at their disposal through the hiring of highly skilled new recruits.

It is now easier than ever to outsource a myriad of tasks to just one umbrella company. Their roles include working on the behalf of a contractor or freelancer, acting as the middlemen between them and the employer. They will handle the administrative aspects, such as invoicing, VAT and National Insurance contributions. It can also perform credit control tasks, chasing up on unpaid invoices and working out how much tax should be paid, and making the payment. A company can outsource payroll to such an organisation, also the bulk processing of invoices and payments.

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