When considering outsourcing your recruitment function for perm and/or contingent workers, a make-or-buy analysis is usually conducted at the strategic and operational level. Obviously, the strategic level is the more long-term of the two. Variables considered at the strategic level include analysis of the future workforce, as well as the current environment. Issues like labour market situation, technology developments like increased artificial intelligence, and market trends all have a strategic impact on the make-or-buy decision of your recruitment function.
Make-or-buy decisions of course also occur on the operational level and on more short term objectives, like for example a lack of expertise and available resources to scale up. Especially when companies have a varying demand across Europe and work with a decentralised recruitment function, responding to a rapidly increasing demand from the hiring managers community can be challenging.
The two factors most companies take into consideration in a make-or-buy decision are costs and the availability of expertise and capacity. The factor cost in particular is subject to varied interpretation and to great misunderstanding, as most of the internal recruitment costs are made at an indirect level. Cost considerations should include all relevant costs and be long-term in nature.
Is partnering with an external recruitment partner always the best solution? No, not in all cases. Sometimes there are good reasons to keep (part) of the recruitment function in your own hands. Your company may simply not be ready to outsource yet.
A minimum requirement for successful outsourcing of (part of) the recruitment function is a strong demand organisation, built on a solid talent acquisition strategy. External partners can provide you with additional capacity, specific market knowledge, scalability and efficiency, but only you can translate the business needs into talent demand. Providing your recruitment partners with a consistent and solid steering on your demand (short term ànd long term) will support them in adding optimal value to your organisation.
So, outsource or not?
The trend for increasing outsourcing in recruitment is here to stay. Increased impact of technology combined with a more scarce labour market makes it more challenging to run your recruitment function in isolation. If you feel you have little visibility or control over your recruitment, remember that a specialist solution might be able to give you that competitive edge. Beware though to stay in control with an excellent demand organisation.
Ron Bosma is Managing Partner at TalentIn. With more than 30 years in the industry and as former Managing Director of Randstad Sourceright EMEA he has an extensive experience in RPO and MSP solutions, having served client’s like Philips, Siemens and PWC to define and execute their contingent talent management strategy including supportive technology systems like VMS and ATS. His previous roles have spanned across numerous EMEA markets and provided an opportunity for him to work with a variety of companies in many sectors.
TalentIn can help you assess your current recruitment or outsourced programme to make sure they support your Talent Management Strategy as good as possible. We are happy to discuss this topic more in depth with you. Please visit us at www.talentin.eu , mail us at firstname.lastname@example.org or call us on +31 10 307 54 22.