Talent acquisition teams need to balance short-term financial challenges with long-term ability to do their job effectively. When markets dip, the high fixed costs of in-house talent acquisition can be damaging to the business – and push the organisation to choose between cost savings and results.
In a recent article for the HR Director, Seb O’Connell, President – EMEA & APAC, shared his insights on how organisations can transform their talent acquisition functions to be more flexible. He explores how different models can help a business respond to both current and upcoming needs.
From the article:
Simply removing the fixed cost of in-house recruiters and acquired technology is also an imperfect solution. The thinking in a recession – or the lead-up to a recession – is that nobody is hiring, but they are. Just not at the same rate and often only the pivotal and / or key roles.
If businesses remove too much of that fixed cost without a back-up plan, the fallback is to enlist recruitment agencies to fill those essential roles that inevitably will come up. The most likely outcome of this is that the total cost will outpace the fixed cost of the in-house resources that were removed.
The advantage of stripping back costs and enlisting help from outsourcing experts is that you are bringing external specialists into your organisation – together with their ability to optimise your tech stack and augment it with their own. They will know your industry and act as a shock absorber when it comes to economic peaks and troughs in the future.
With a fully in-house team, high fixed costs remain through ebbs and flows in recruitment needs. With a Recruitment Process Outsourcing (RPO) partner the cost, as well as the service, can be scaled up and down according to your needs.
Visit The HR Director to read the full article, “How Companies Can Reduce Fixed Costs and Add Flexibility to Recruitment”