Pros and Cons of Outsourcing Your Staffing Needs

The staffing process encompassing the recruitment, selection, and management of a company’s employees is a constant commitment. Many companies aren’t equipped to handle this process and don’t have the resources to effectively hire top talent. As such, outsourcing your staffing needs to a third party has become a modern solution to this problem, as partnerships with staffing and recruiting experts can provide a competitive edge in the job market while also offering other benefits. With these advantages, there are also drawbacks that firms need to consider carefully before making a decision.

Below, we delve into the pros and cons of outsourcing your staffing need. 

Pros of outsourcing your staffing needs

Time and Cost Savings

The associated time and money saved is often the most discussed benefit of outsourcing staffing. Staffing firms are well-versed in the hiring industry and have perfected their processes to maximize efficiency and minimize costs. In some cases, companies looking to hire may pay as much as seven times what they could pay for an external service to handle it. In addition, staffing companies can oversee compliance, payroll, and HR processes that will cut additional administrative costs. By leveraging their curated processes, staffing agencies can reduce the time and effort required for hiring processes while also bringing top talent to your firm.  

Access to a Larger Talent Pool and Specialized Expertise

Staffing firms possess a deep understanding of the necessary skills required for specific roles and have access to a vast network of professionals. This combination allows these agencies to identify the most qualified candidates with skills that will add to your company and values that align with yours. Staffing companies also leverage their specialized expertise through a rigorous screening processes, which enhances the quality of candidates being brought in.  

Ability to Focus on Core Competencies

Hiring processes have associated time, costs, and resources that can be better used to serve a company’s founding mission. With time and money saved and confidence that the staffing firm will bring in the most qualified professionals, companies can confidently redirect their focus and resources towards their core competencies. Through this, companies can concentrate on their key business objectives, often attaining increased efficiency and productivity levels.  

Cons of outsourcing your staffing needs

Less Immediate Control

When a business process that was previously executed by an in-house team gets outsourced to a staffing agency, there is less immediate control in the hands of the company. If this transition is mismanaged by either party, the quality of the operation can go downhill. This could result in unforeseen costs, lower quality hires, and lost efficiency. To mitigate these impacts, it is suggested that the firm clearly explains its unique objectives, needs, and expectations for the partnership.  

Communication Challenges

On a similar note, outsourcing staffing needs opens the door for miscommunications to occur. Especially if the staffing agency isn’t in close proximity, in-person check-ins and other communications become more difficult. These challenges can be easily addressed by setting core business hours for the partnership, standardizing strong channels for communication, and organizing set communication points with regularity.  

Privacy and Security Concerns

Depending on what key functions a staffing firm is hired to perform, elements of your business assets and information will be exposed to outsiders. The chances are rather low that this inside information will be used with malintent, but outsourcing staffing needs puts company information outside of your direct walls. Careful management and oversight of privacy, intellectual property, and data protection are imperative throughout an outsourcing partnership.  

Partnering with BCTG

Strategic partnerships with the right staffing firm can help a company achieve a more efficient and specialized hiring process, bringing in the top talent they desire. Before making any final decisions on a staffing agency, the potential risks need to be discussed and a deliberate plan needs to be laid out. With proper planning and execution, your company can optimize its talent acquisition process and develop the competitive advantage it seeks.  

To learn more about outsourcing your staffing needs with BCTG, click here. 

Contributions from Aaron Messer