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Is Outsourcing To A Recruiter Cost Effective?

As an employer, growth in your business comes down to reducing costs and increasing profits. An employer’s job is to constantly find ways to be more cost effective and productive, and many times this means outsourcing different aspects of the job (like hiring, payroll, HR, etc) to an outside recruiter. This not only saves employers valuable time and allows them to focus on other important responsibilities, but it reduces turnover and streamlines the hiring process, which can save companies money.

Here are four reasons why outsourcing could be the most cost effective business decision you make this year:

Reduced Capital

A traditional business spends a significant amount of money each year on office space, supplies, training, hiring, benefits and salaries for their HR department. Companies expend capital on this vital department, but they may not necessarily have to. Outsourcing HR responsibilities means you get all of the benefits of a competent HR department without paying for any of the overhead. Imagine how much money you could save if you didn’t have to have an entire HR department, and instead outsourced these responsibilities to a staffing agency! This is one of the biggest ways utilizing a recruitment service or staffing agency can be cost effective for your business.

Reduced Training Expenses

When you hire a new employee, there is a transition period in the beginning where valuable time and resources are spent training and educating the new hire so he/she can get acclimated to the new position. This is not a step you can just skip to cut costs. Hiring a staffing agency can help you find qualified candidates that already have experience with a specific task so you don’t have to spend as much time or money training them. With access to an extensive network of qualified candidates, a recruiter can find the right person for the job; someone who has already been through the training and get right to work on day one.

Increases Quality Hires and Reduces Turnover

Turnover is a huge problem, especially in industries like technology, retail, and media. Employers spend time and money screening, training, and onboarding new recruits only to lose them shortly after their hiring date. Turnover happens for many reasons, some of the most common being:

  • Employees lack opportunities for growth and progression

  • Employees are overworked

  • Employees don’t feel valued or recognized

  • Employees aren’t paid enough

Turnover is expensive for your business, so finding ways to not only find qualified employees but keep them for the long term is an extremely cost effective strategy. Staffing agencies help reduce turnover (and in turn reduce costs) by using their industry specific resources to conduct thorough background checks, screenings, and pre-employment drug testing. Their extensive network of qualified candidates dramatically increases the chance that you hire right the first time and avoid unexpected turnovers.

Generates Temporary And Seasonal Workers

One of the areas in which companies spend the most amount of money is benefits for their employees. A significant percentage of a company's payroll is dedicated to benefits. Since all full-time employees are eligible for these benefits, the more full-time workers you have the more you pay. This is where seasonal and temporary workers come in. Staffing agencies can help you find qualified and experienced temp work. These specialized workers can help you when your full-time employees are overworked, as you enter a peak season, or even when you experience an unexpected influx of business. Using a staffing agency to recruit temporary workers can help your business stay productive and meet deadlines without having to spend significant money on benefits for full-time employees.

It's no secret that sometimes you have to spend money to make money. Investing in a competent and professional Orange County staffing agency could mean the difference between making money this year and staying stagnant. If you're looking for ways to cut costs in your business, Outsourcing some of your daily tasks might be the first right step.

There are many reasons why so many California businesses are working with recruiters and staffing agencies to help them minimize costs and maximize profits. If you're ready to join them, contact us today!

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