Outsourcing is not a new solution. But for most organisations, it is an underused solution to most of their problems. The recent COVID-19 pandemic has led to many executive changes in most companies across the globe. We’ve seen large scale organisations cutting out a portion of their paid employees, in order to stay afloat. Below, we list some of the reasons to consider contract recruitment process outsourcing.
Reasons to Consider Recruitment Process Outsourcing
There are a number of reasons why organisations will consider outsourcing its recruitment process. However, some of the most common reasons are:
Reducing operating, advertising, and recruitment costs: Direct hiring is a lengthy and expensive process. Additionally, organisations engaged in the art of hiring and recruiting will be able to streamline your recruitment processes.
Better quality of hires: RPO providers invest time, energy, and money into technology that helps to perfect their sourcing skills. It stands to reason that RPO recruiters are able to discern extraordinary niche talent from a pool of regular job seekers.
Reduced time to hire: Most RPO providers have spent their resources cultivating a pool of talent in their respective industries. This greatly reduces the time to hire, without having to sacrifice candidate quality.
Data and reporting: Good recruitment process outsourcing providers will track every step of its hiring process. This gives organisations real-life reporting and tangible data that might be useful when it comes to future hiring needs.
Lesser risks involved: Engaging with a trusted RPO provider gives all organisations (i.e. MNCs, SMEs) a sense of security. One of the biggest risks organisations faces when they fail to engage with an external recruiter.
Contract Recruitment Outsourcing During Uncertain Times
Contract recruitment outsourcing allows organisations in Singapore to hire talents on a contractual basis. Unfortunately, the global pandemic has brought along an economic recession here in Singapore. According to Trade and Industry Minister Chan Chun Sing, “the road to recovery is a slow and uneven journey [...]”, in a recent Facebook post. Of course, this statement was made in reference to Singapore’s economy as a whole. However, there is reputable advice behind this statement.
Contract recruitment outsourcing is a good solution for companies small and large. Here at BGC Group, is seeing an increase in contracting orders. In Singapore, this is a trend that is growing in large private and government sectors.
Benefits of Contract Recruitment Outsourcing
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There are a number of reasons why organisations in Singapore should consider contract recruitment outsourcing. They include:
Cost-effective: Perhaps the main allure of hiring contract employees is that they keep costs low, unlike permanent hires.
Unlike permanent hires, short-term contract employees do not require health insurance coverage amongst other costs. Additionally, a contract or temp workers do not require time off to learn the job. Businessweek estimates that organisations can save up to 30% of their costs for every contract staff hired.
Additionally, companies in Singapore who choose contract recruitment outsourcing will save on costs such as CPF, insurance and job benefits. Get a more in-depth look in the table below:
Safe choice: Contract recruitment outsourcing is the safest choice for organisations right now. On its own, contract hire is already a less risky option. Contract recruitment on its own is already a safer option when compared with permanent hires.
But hiring contract employees with the help of a trusted vendor gives you an added amount of safety. Unexpected hiring bumps such as candidates dropping out adds to your cost. However, when you engage the help of a third party vendor, a replacement candidate can be sourced quickly.
Hiring a third-party contract recruitment outsourcing helps you properly manage compliance safety. MOM (Ministry of Manpower) and TAFEP requirements, performance management, and financial liabilities are some areas that require proper compliance.Quality of talent: There is an outdated stereotype when it comes to contract staff. Employers who are unfamiliar with this employment term sometimes see them as more ‘flighty’, ‘less skilled’, ‘uncommitted’ when compared to permanent hires. Of course, as a recruitment outsourcing agency in Singapore that specialises in both temporary contracting and permanent headcounts for reputable tech giants who would readily hire both, we beg to differ.
A candidate’s talent can be measured by the experiences marketed in both their resumes and interviews. The quality of work and commitment can be easily determined by the references provided in a candidate’s resume. An experienced recruiter will be able to discern the redeeming qualities of different job seekers.
Industry expert knowledge: Perhaps your organisation needs to find talent in an industry that your hiring manager has little knowledge in. Hiring the wrong candidate is an expensive loss. In a study conducted by CareerBuilder, it is estimated that one bad hire can cost a company US$7,000 — US$10,000 (approx. S$9,600 — S$13,850). A costly price during the pandemic.
For example, hiring a cybersecurity expert oftentimes require a lot of time invested by the hiring manager or technical recruiter that has in-depth knowledge and understanding of niche skills required of the field. Additionally, the high demand for cybersecurity talents and the lack of experts available in Singapore, makes it harder for a regular recruiter to convince and hire the right cybersecurity expert.
The current issues due to Singapore’s declining economic climate and the repercussions from COVID-19 has led to a number of problems for all organisations. The insurmountable amount of growing problems can result in uncertainty and a lack of attention when it comes to a company’s hiring needs. Outsourcing a portion or a full spectrum of your company’s hiring process allows your organisation to focus on its current needs and projects.
Click here to learn more about the benefits of recruitment outsourcing in Singapore.
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