Outsourcing Human Resources: Why It Can Help Your Recruitment Efforts

Outsourcing human resources

The current economic conditions have many companies looking for innovative ways to balance their budgets. Outsourcing human resources functions are one great way to get stretch a company’s dollars while continuing to provide employees with outstanding services.

But the benefits of outsourcing human resources do not end there. Outsourcing provides many opportunities to streamline and improve many HR processes, including the recruitment process. It can lead to the following benefits:

  • Scalable Recruiting: Experiencing growth is a positive achievement for any business owner. However, it can be challenging to stay fully staffed when you grow quickly. And without sufficient staff, it is hard to focus on growing your team since everyone is focused on meeting the business goals and deliverables. With outsourced HR, you can hand off recruitment activities, allowing your current staff to focus on their work without jeopardizing performance and productivity. And with someone else working on recruitment, employees can still meet hiring deadlines, no matter how fast the company is growing. This process gives you the best of both worlds and puts your business in a great position to expand.
  • Greater Recruiting Technology: Unless your business is incredibly large, you are likely using traditional recruitment methods and technology, such as posting on Indeed or LinkedIn. Unfortunately, you may be doing your company a disservice by not leveraging other superior technologies. Today’s recruitment landscape involves a complex array of sophisticated tools and platforms powered by AI technology. These tools make it much easier to identify qualified candidates and ensure they fit your organization well. Unfortunately, the vast majority of businesses do not recruit at the volume needed to make it financially viable to purchase these tools. When you outsource HR, you can work with specialists with access to the latest and greatest technologies that make recruitment easier and more effective.
  • Better Fit: By using expert HR recruiters, the likelihood of asking more appropriate, legal, and job-related questions multiply exponentially. HR experts tend to ask more direct job-related questions, often asking follow-up questions and digging deeper into an employee’s background and skillset. Often hiring managers tend to overlook red flags that HR professionals identify in interviews. Objective interviews by neutral parties greatly improve the likelihood of vetting and selecting candidates who are able to clearly demonstrate their skills and abilities when tested by an expert interviewer.
  • Reduced Turnover: Since outsourced HR firms have cutting-edge technology and a team of specialists who work to match candidates with positions, they often have a higher success rate. This process leads to employees working in a job they love and employers having a competent team. In addition, with the high cost of training new employees, a reduction in turnover can also lead to financial benefits, especially if you repeatedly end up with high-quality employees. Both of these factors can work to reduce turnover and keep your team happy.
  • Become an Industry Leader: One of the quickest ways to become recognized as an industry leader is to fill your staff with competent and trustworthy individuals. You can consistently get high-quality new hires when you partner with an HR firm. And over time, this can give your business a huge boost in its reputation, which will help you attract new customers and lead to increased interest by job seekers looking for a great place to work.
  • Greater Compliance: The recruitment process is filled with legal pitfalls. Laws are constantly changing related to privacy, appropriate and/or illegal questions that must be avoided, the timing of job offers, assumption of job offers, background checks, disclosures, labor laws, and discrimination. As a result, staying up to date on all applicable federal, state, and local laws that apply to your business can take a ton of time and energy. And when you hire remotely, the process can be even more daunting, as you have to manage laws in other states – and in some cases, other countries. One misstep in any of these areas can result in fines or open a company up to legal action from a complainant. However, when you partner with an HR firm, you can rest assured that you will be working with a highly-trained team that is well-versed in all aspects of compliance during recruitment. Ultimately, this process can reduce your risk and ensure that your company doesn’t incur costly penalties or damage its reputation for non-compliance.
  • Financial Benefits: While having all of the benefits that come with outsourcing your human resources may sound expensive, it is often far more cost-effective than handling recruitment in-house for most companies. Economies of scale allow HR firms to offer this service at a reasonable rate. And with the current economic conditions, most companies are looking to cut costs anywhere they can.

For many companies, outsourcing human resources may be one of the best financial moves you can make to increase the likelihood of long-term success – and even better, you don’t sacrifice anything by outsourcing. As you can see, the other benefits of outsourcing are attractive on their own. When you factor in potential cost savings, it becomes an easy choice. For more information about the benefits of outsourcing human resources, contact CA HR Services today.

CA HR Services specializes in working with small and medium-sized companies to help develop legal, efficient, and appropriate H.R. processes and procedures that meet state and federal labor law requirements.