Organizations face the "build vs. buy" decision in multiple aspects of their businesses. Should I expand into a new market segment or purchase a new company? Should I buy a new location or build my own site? Should I gain market share by building a more robust team or acquiring a competitor?
Talent acquisition decisions are no different. Deciding between building your internal talent acquisition team or outsourcing your recruitment process can be difficult. However, understanding both can help you decide which option makes the most sense for your business.
In-House Talent Acquisition Team
When you leverage your in-house talent acquisition teams, you hire or use existing employees to carry out your company’s recruitment functions. This can also involve investing in resources such as technology and training to support the recruitment process.
Your internal talent acquisition team can include several people with different roles and responsibilities to work together in sourcing and hiring new employees. Though the size of talent acquisition teams varies by company size and recruitment goals, typical positions can include:
- Recruiter: The recruiter is responsible for actively sourcing candidates and finding people interested in the company and job openings. They use various methods to reach out to potential candidates, such as job boards, social media, and referrals from current employees. Recruiters also conduct initial screening interviews with candidates to determine whether they fit the position.
- Recruiting Coordinator: The recruiting coordinator handles administrative tasks related to the recruitment process, such as scheduling interviews, preparing paperwork, and ensuring information is sent out correctly. They may also be responsible for scheduling candidate assessments or ensuring that interviews go smoothly by checking in with candidates and hiring managers throughout the process.
- Employer Branding Specialist: The employer branding specialist is responsible for developing and promoting the organization's employer brand. They work to create a positive image of the organization as an employer and attract top talent.
- Data Analyst: The data analyst is responsible for tracking and analyzing recruitment metrics, such as time-to-hire, cost-per-hire, and source of hire. They use data to identify areas for improvement in the recruitment process and make data-driven decisions to optimize hiring.
- Talent Acquisition Manager: The manager oversees all aspects of recruiting efforts within an organization, including hiring strategies and budgets. They may also develop compensation packages for new hires or oversee training programs after they join your team.
These are just a few examples of the roles that make up a talent acquisition team. Depending on the organization's size and hiring needs, additional roles or responsibilities may be added to the team, such as onboarding specialists and diversity and inclusion specialists, to help meet specific goals.
There are advantages and disadvantages to building your in-house recruitment team. Here are a few:
- Greater control over the hiring process: When you build an internal talent acquisition team, you have complete control over the hiring process, including employees, technology, and operations. You can set your criteria and standards for the job and ensure data privacy and confidentiality.
- In-depth understanding of the company culture: An internal talent acquisition team understands the company's culture, values, and goals, which makes it easier to find the right fit for the organization. They can identify candidates who share the same values and beliefs as the company.
- Build a pool of candidates: When you are in charge of your own recruitment, you can build an extensive pool of pre-vetted candidates who align with your values and culture, making it easier to fill positions in the future.
- High upfront costs: Building an internal talent acquisition team requires a significant investment in time, resources, and personnel. You'll need to invest in training, recruiting software, and other resources to build an effective team.
- Limited access to talent: An internal talent acquisition team may have limited access to talent, particularly for specialized roles or in niche industries. This can make it challenging to find the right candidates for your organization.
- Limited scalability: An internal talent acquisition team may not be able to scale up or down quickly, which can be a problem if your hiring needs fluctuate.
Outsourcing Talent Acquisition
Outsourcing is when a company hires a third-party entity to fulfill its business objectives. Outsourcing recruitment is when a company transfers all or parts) of its recruitment process to a Recruitment Process Outsourcing (RPO) partner. An RPO partner can offer its own recruitment process or may assume the company's operation, technology, methodologies, staff, and reporting.
Let's review the pros and cons of RPO:
- Expertise: RPOs are dedicated 100% to talent acquisition. They provide knowledge, experience, and best practices to leverage the latest technology, marketing techniques, and industry insights to hire better candidates faster. They can be a reliable resource by improving processes, forecasting hiring needs, and navigating times of economic uncertainty.
- Scalability: Whether you need to expand rapidly or you're experiencing a slow period, an RPO can cost-effectively scale recruitment resources. This way, you avoid investing or hiring excessive recruitment support that you don't need year-round.
- Enhanced candidate & employee experience: An efficient and enjoyable candidate experience, from timely correspondence to onboarding, can make or break the overall perception of your company. Hiring candidates who align with your company's values and culture results in happier and more engaged teams that want to grow with your company.
- Less control over the hiring process: Outsourcing to a recruitment firm means giving up some control over the hiring process. While you can set the criteria and standards for the job, the recruitment firm is responsible for finding the candidates and conducting the initial screening.
- Lack of company culture understanding: A recruitment firm may not have a deep understanding of your company's culture, which can lead to mismatches between candidates and the organization. However, a good partner will learn and adopt your company's culture and values so they can recruit for you as you.
- High fees: Depending on the number of services you need, recruitment firms may charge high fees, which can be a significant cost for businesses, especially for smaller organizations.
Factors to Consider
Both in-house recruitment teams and outsourcing have their advantages and disadvantages. If you’ve reached a point where you need to expand your recruitment efforts but still having difficulties deciding which option is best for you, consider these factors:
Insourcing recruitment is an excellent option to keep costs low if you are leveraging existing resources. However, if you need to hire or invest in new resources, you may be spending more than you would if you had outsourced.
According to Indeed, the average annual salary of a recruiter in the United States is $56,990, not including benefits, PTO, office materials, or other employee-related costs.
An RPO partner bundles recruitment-related expenses into the partnership fee – including marketing & advertising, recruiter salaries, and office space. They also provide indirect cost-saving opportunities by reducing time-to-fill and turnover and improving the quality of hires.
Understand Your Needs
Why are you considering expanding your recruitment efforts? Is your company rapidly expanding? Are the roles specialized or hard to fill? Do you need strategic expertise beyond recruitment? Do you need to leverage technology? Once you understand what support you need to meet your goals, you'll be able to make the best decision for your organization.
Examine Your Existing Resources
Having a TA team with the bandwidth and resources to manage recruitment effectively is critical. If your existing TA team (or HR team) seems overloaded with HR-related tasks, you may want to rely on the help of an RPO to avoid making bad hires or overworking your team. Plus, it is unlikely they have access to the latest technology and systems as an RPO provider. This way, they can focus on their core functions while a team of experts manages recruitment.
We Can Help
If you're interested in learning more about how Hueman RPO can add value to your organization, contact us today for a no-cost, no-commitment talent acquisition consultation.