Selecting the right recruitment model
Find, hire and retain the talent you need to drive your organisation forward
“The modern recruiter effectively blends best practice use of technology with highly effective human influencing skills.” (Greg Savage)
Hiring the right talent is crucial for any organisation’s success.
But with so many recruitment options available, navigating the landscape can feel overwhelming.
Should you partner with an external agency, build your own internal team, or consider Recruitment Process Outsourcing (RPO)?
First, let’s unpack the pros, cons, and costs of each approach and then consider which might be the best fit for you.
External Recruiters:
At their best of external consultants are your superheroes, swooping in with specialised expertise and a vast network of candidates.
Pros:
Speed and expertise: Established agencies have pre-built talent pools and know the market inside-out, often filling roles faster than internal teams.
Reduced workload: They can handle the entire recruitment process, from sourcing to interviewing, freeing up your internal resources.
Specialist knowledge: Many consultants focus on specific industries or roles, offering in-depth understanding of your unique needs.
Cons:
Cost: Agency fees can add up, ranging from 15-30% of the successful candidate's salary.
Loss of control: You give up some control over the selection process, relying on the consultant’s judgment in the early stages.
Relationship building: It takes time to find a partners that aligns with your company culture and values.
Internal Talent Acquisition Teams: The In-House Champions
Building your own recruitment team offers greater control and deeper company knowledge. Think of them as your in-house talent champions, dedicated to nurturing a strong employer brand and building long-term relationships with candidates.
Pros:
Deeper employer branding: Internal teams can tailor recruitment strategies to your unique company culture and values.
Cost-effective in the long run: While initial setup costs exist, internal teams can be more cost-effective for high-volume hiring.
Better control: You have full control over the selection process, can build strong relationships with potential hires and they have a vested interest in retaining talent too.
Cons:
Higher fixed costs: You’re committing resources to salaries, on-costs and tools.
Slower turnaround: Building a strong team and sourcing candidates takes time and resources.
Limited network: Internal teams typically have smaller networks compared to established agencies.
Specialised expertise: Hiring for niche roles might still require external support.
RPO: The Hybrid Hero
RPO (Recruitment Process Outsourcing) aims to offer the best of both worlds.
Partnering with an external provider to manage specific parts of your recruitment process.
Pros:
Scalability: Scale your recruitment efforts up or down based on your needs.
Cost-effectiveness: Can be more efficient than agencies for high-volume recruitment.
Access to expertise: Leverage the RPO provider's specialised knowledge, tools and networks.
Cons:
Loss of control: You share control over the recruitment process with the RPO provider.
Finding the right partner: Choosing the right RPO provider is crucial for success.
Contractual complexities: RPO agreements can be complex and require careful negotiation.
The Verdict: It's about what you need
Choosing the right approach depends on your specific needs, budget, and culture.
Here's a quick recap:
External agencies: Ideal for speed, specialist expertise, and limited internal resources, but be prepared for agency fees and potential loss of control.
Internal teams: Cost-effective in the long run and offer deeper employer branding, but require investment and may struggle with niche roles.
RPO: Provides flexibility, scalability, and access to expertise, but requires careful partner selection and involves some loss of control.
Remember:
Consider your budget and resources.
Think about the level of control you want.
Evaluate your company culture and employer brand.
Research and compare different providers.
Ultimately, the best approach is the one that helps you find, hire and retain the talent to drive your organisation forward.
Book a deep dive to unpack your culture, goals and the human capital you need to achieve them. It will help you shape your recruitment strategy and the ideal allocation of resources.