Why Companies Outsource Research And Recruiting Services


Recruiting World Class Talent Requires Time, Talent Intelligence and Continuous Contact With Passive, Qualified Talent

Should these services be outsourced entirely or selectively? What makes the most sense for your company?




When deciding to outsource research and recruiting services, many organizations start with the same question: Which activities should be outsourced, and which are we capable of doing in-house? Today with hiring on the rise and the war for talent at an all time high, many companies are being faced with the many challenges of meeting hiring and recruiting demands. Therefore the decision to turn to outsourcing research and recruiting services as a solution is under consideration and being reviewed as an option.

It can be agreed that the decision to outsource or not is never an easy one. The good news is that in our industry, the decision to outsource research and recruiting services is not an all or nothing decision. Outsourcing these services can be undertaken to varying degrees. Outsourcing research and recruiting services can range from total outsourcing to selective outsourcing. Whereby selective outsourcing may only target a single task or a few. Ultimately the choice to outsource is due to the fact that the company believes the decision will result in gains in profitability and efficiency.

After discussing this topic with 25 talent acquisition leaders, human resources professionals and C-level individuals, I discovered there are 5 main business drivers that motivates a company's decision to outsource research & recruiting services.

Cost Savings - When companies outsource research and recruiting services they typically do so with partners that specialize in specific areas such as research, mapping, sourcing, and recruiting. This decision is based upon the reasoning that these functions can be performed more efficiently than the company, or simply by virtue of transaction volume. As for some of the larger companies and those companies with strong internal executive search teams, the cost of outsourcing outweighs the cost of hiring a new employee. 

The ability to exploit a flexible work force often allowing for scalability.  As we have come to learn, hiring needs can change weekly, monthly, quarterly and yearly.  These fluctuations in hiring demands can be very challenging for a company's existing staff and by outsourcing research and/or recruiting services on an as needed basis simply makes sense.

Access to a broad yet targeted potential talent pipeline of world-class talent. We are now in a time where recruiting world-class talent is very competitive and requires access to a broad yet targeted potential pipeline of world-class talent. By outsourcing, a company's recruiting efforts may not be just limited to internal databases, social networks, LinkedIn and employee referrals. The additional outside resources can provide a larger reach, providing talent intelligence in turn increasing a potential talent pool.

Expertise and Competitive Advantage. As for small companies, or those not having  the same recruiting capabilities as larger companies, outsourcing research and recruiting to experts simply allows these companies to compete for the same talent. It can put these companies on an even playing field in their search for world-class talent.

Accountability outsourcing is predicated on the understanding, shared by company and partner alike, that such arrangements require quality service in exchange for payment. To some degree it is a given that by paying for research and recruiting services creates the expectation of performance. In our industry we often hear, "time is of the essence; when can I expect to get candidates; when can I expect to get research?……." When these services are outsourced, there is little wiggle room for mediocrity, inefficiencies and non-performance. Greatness and results are expected.

The decision to outsource any service is a major strategic one for most companies, since it involves weighing the potential cost savings, efficiency, and to some against the consequences of a loss in control. However, unlike outsourcing other services outside of research and recruiting services, the client is still in control of the process and cost. Furthermore, understanding there are other research and recruiting services providers out there, the chosen outsourced partner is expected to produce. If the results are not realized, the process is not efficient and cost savings is not present, the client has the option to go to another service provider. So if you are a service provider of these services it is important to over deliver and do it cost effectively. Just saying…..


Sheila Greco