We do not have a clear example of full outsourcing of a recruiting function to us. This is mostly because the organizations that want to do this with us are smaller. They need continuity in their recruiting activity. Their recruiting work mostly comes in "bursts", rather than being a continuing, stable monthly volume. So they prefer simpler "case-by-case" approaches, combined with a discount for repeat / concurrent work.
But we can tell you how full recruiting outsourcing could come about, and the benefits that you could expect to receive.
How It Would Work
We meet with your key decision makers to discuss the possibility. Based on this meeting, we would prepare an "approach document" that will clarify the following.
The scope of the anticipated outsourcing, essentially a short summary dealing with what, who, when, where, and how. The "why" question will come last and is crucial.
Our experience with IT outsourcing has made it clear that is very important to have complete openness about "why you want to outsourcing your recruiting" in order for negotiation process to come to an successful conclusion.
IT outsourcing usually also involves taking over responsibility for fixed hardware assets, software licenses and staff. These make it more complex, but potentially more cost effective for the firm doing the outsourcing. It eliminates capital and fixed costs, transforming them to "pay as you use" variable ones. The outsource supplier uses "economies of scale", and the ability to share expertise and "fixed asset cycle utilization across multiple clients" to provide the outsourced services. They pass the economic benefit of their economies of scale onto their clients. Generally, recruiting outsourcing does not involve these dynamics.
A second round of dialogue based on this document happens. If it moves forward smoothly, it concludes with a letter of intent.
Detailed planning happens. It requires extensive dialogue between your staff and ours. You need to verify the estimates as they are completed. Estimates need to be completed for all of the following and more:
how many recruitments are anticipated,
when will they occur,
what level of positions will they be for,
- what process will be followed / what tools will be used,
who are your key hiring decisions makers,
what is the authority boundary between your staff and ours,
what are the service level metrics that will be put in place,
- where will the work be done,
- ... ...
Based on the planning, we prepare a first draft of the financial parameters. It could be a simple as a fixed cost per month, and as complicated as a monthly retainer, with incremental costs for actual work done beyond a certain monthly level, and "claw backs" to you when we do not hit agreed upon service level metrics. It all depends.
We negotiate with you ... ... and come to agreement. An "agreement in principle" letter is signed. That allows recruiting to start, while the actual legal contract is completed / signed.
The outsource process looks complicated. Outsourcing always is. You have a simpler option. Simply retain us to handle your recruiting on a case-by-case basis. Based on the anticipated volume, we will provide a discount that will be applied, based on actual volumes, to future streams of payment from you.
You avoid staffing an in-house recruiting function that may not be required on a full time basis.
You get the benefit of having an "as you need it" team of professional recruiters who come to know your enterprise's performance needs and culture. This continuity improves the quality of your hiring.
We use all of our innovative process and supporting tools to do your recruiting work.
The recruiters that are working for you are constantly exposed to "state of the art / best practices" in recruiting.
Because we are so strongly focused on achieving both "candidate capability to position performance needs" and "candidate personality to organization culture" needs, you will get the best fit candidates that we can currently source.