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5 min read

5 Reasons Your Company Should Consider Outsourced Recruitment

5 Reasons Your Company Should Consider Outsourced Recruitment

Key points

  • Outsourced recruitment can save you significantly on the cost of employee hire. 
  • When a third party directs your recruitment, you usually reduce the time-to-hire. 
  • Recruitment and employment agencies often have a depth of expertise in recruitment that you cannot begin to match. 
  • Outsourced recruitment usually allows you to benefit from the software and tools held by specialist agencies. 
  • A recruitment agency will often be able to delve into talent networks that you have no access to. 

Filling an open position in your company can often be a long and tiresome process, especially when it comes to finding the right cultural fit. This process can be particularly difficult if you are a smaller size company in the process of expanding. This is where recruitment process outsourcing (RPO) can come in handy. Of course, there are costs involved, but with the help of a third-party recruitment team, you can source the best talent, in less time. 

In this article, we will address the 5 reasons why considering outsourced recruitment could be the right decision for your company. 

1. Save Hiring and other Business Costs 

As we briefly mentioned, outsourced recruitment can substantially reduce hiring costs for your company. Relying on your internal HR department to find the right hire for your company, means devoting their time and efforts to the hiring process, from advertising the job position to shortlisting the candidates, conducting interviews, background checks, and other time-consuming recruitment tasks. 

Hiring an external recruitment company could help you to reduce costs that directly or indirectly affect your company’s finances. For example, recruitment process outsourcing enables your team to stay focused on their day-to-day tasks, therefore maintaining their productivity levels and company revenue. Whatsmore, when you invest in an RPO you are also investing in advertising costs and recruitment technology.  Using a recruitment firm can also help your retention rate, by sourcing a candidate who fits into your company, culturally and technically. If the right candidate is found, it’s easier to retain them, and as you may know, losing a candidate can be costly through the waste of training resources and the money spent rehiring.  A study conducted by Gallup found that a company can spend 0.5 to 2 times the amount of an employee’s annual salary on finding a replacement. Therefore, getting the hire right the first time around can have a particularly positive effect on your finances.

2. Reduce Hiring Time

One of the main reasons why your company should consider outsourcing your recruitment process is due to its time-saving benefits. Hiring can be a lengthy process, especially when it comes to writing job descriptions, posting job adverts, sorting through resumes, contacting the candidates, and eventually, interviewing these potential hires. It can cause your employees to get distracted from their normal day-to-day tasks, which can have an overall negative effect on your core business operations. 

External recruitment agencies save your company so much time through their experience, the HR processes they already have in place, and most importantly, their resources. Through their expertise, they can find the right talent for your company at a much faster pace, massively reducing your cost per hire. In addition to this, outsourcing your recruitment allows you to maintain your employee’s level of engagement and reduces the likelihood of tasks piling up and workload falling behind, which can have an extremely negative effect on your business as a whole.  

3. Access to Recruitment Expertise

Working with an external recruitment agency can benefit your company in many ways, through their deep knowledge of the selection and recruitment process and their ability to find the right fit according to your business needs. Not only will these recruiters provide you with a well-matched candidate, but their expertise will also help to reduce your employee turnover rate. Bad hires result in a higher churn rate, which becomes incredibly costly and time-consuming, not to mention the negative effect it has on your reputation as a company. According to the Harvard Business Review, 80% of employee turnover is due to bad hiring decisions, which results in the need for new employees and training and development costs. 

By considering outsourced recruitment, you are putting your company’s future into the hands of experts which in turn, will bring highly skilled candidates to your company. Their knowledge of international and domestic labor laws can also prevent legal issues.

4. Improved HR processes 

As we just mentioned, external recruitment agencies often have robust and efficient processes in place. By turning to an external agency, you may gain access to their hiring technology and other resources, which can often be expensive. With access to HR technology, external agencies can measure people analytics and other important insights. With these advanced reporting features, recruitment agencies can then gather detailed insights about your potential hires and as a result, make better hiring decisions for your company. 

As we stated, using an external hiring company can help your company to stay HR compliant and attract top talent. Therefore with the help of an external hiring team, you can ensure a smooth and improved hiring process, which over time will help your human resources team to gain knowledge of their recruitment methods and improve your in-house hiring processes.  

5. Unlock New Hiring Channels

External recruiters can help find high-quality hires through their access to untapped hiring channels or networks. By considering RPO your company gains access to a much wider talent pool than you would normally have access to with traditional hiring practices. Relying on your internal team to find the right hire means being limited to employee referrals, internal staff promotions, and candidates within job portals. Therefore with the help of an external team, you gain access to a more varied pool of potential hires. 

To outsource or not to outsource your recruitment process? The answer depends entirely on your hiring and business needs. As you can see from our article, investing in outsourced recruitment with external hiring agencies can benefit your business in many ways. Not only due to the time and money-saving elements but the positive effect it has on your employee turnover rate and business as a whole. Therefore, before you hire a third-party recruitment agency, consider whether you have the time, resources, and expertise to source the best talent with the help of your existing HR team. If the answer is no, consider turning to an RPO agency to assist with your hiring demands.

Video: Mastering recruitment ‚ whether out-sourced or in-house

Outsourced recruitment — is it worth it? 

As can be seen, there are lots of reasons to outsource recruitment: As specialists in the area, a recruitment agency, or a staffing company or Professional Employer Organization (PEO) that provides recruitment services are usually able to recruit more quickly and cost-effectively than you can. 

If you think outsourcing recruitment is a good option for your company, check out our guide to the best international recruitment agencies. 

If you would like to begin your recruitment outsourcing through a tech solution, check out our top 10 tech platforms for recruitment agencies. 


Outsourced recruitment means a specialist third party manages the recruitment process. This is the alternative to carrying out recruitment entirely in-house.

Recruitment can be outsourced to a specialist recruitment agency. However, it can also often be handled by staffing agencies and Professional Employer Organizations

Article By
HRIS and Remote Tech Specialist
Charlotte speaks with authority as RemotePad’s recruitment and HR tech maestro. With a background in marketing, Charlotte has worked for major brands in the industry, including leading HR software provider, FactorialHR. Originally from Manchester, UK, with a bachelor’s degree from the Manchester Metropolitan University, Charlotte currently resides in sunny Barcelona, Spain.