As organizations act in response to tough financial environment, leading to a reduced temporary demand for talent and skill, many organizations are considering the alternative of outsourcing talen tacquirement through the use of third parties. Although there are many benefits of employing this strategy, but the real application part is a difficult task. This is because, it removes a huge amount of cash out of operating cost, makes the costs associated with recruitment variable and dependant on volume, and still provides similar type of people into the organization.
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In the past few years, a number of HR related functions have been outsourced. Some companies have outsourced benefits administration, payroll, service centers, training and development, travel, and employee relations. There has been a move in the transactional part of HR either to automated systems or to outsourcing firms. While outsourcing talent acquirement and other such functions, demand an equal cost to the organization, as keeping the function inside, it facilitates the organization to concentrate on its value generation part and not get diverted by HR and other administrative details.
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Should HR functions like talent acquisition be outsourced?
Automating and outsourcing transactional activities of any organization is beneficial to the company as these things do not generate any income. As these are administrative so routine in nature and does not require any specific set of talents and skills. . For instance, although writing paychecks does not generate any revenue or cash for the company yet, it is essential. Outsourcing this tiresome and time-consuming job to a third party, like a bank, or Paychecks, will be quite beneficial for the company.
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Does the same work for outsourcing talent acquirement?
The process works well for certain kinds of recruitment, but it is wrong to treat all recruitment as transactional and, non-value added. The composition of workforce in any organization has four major categories. All these categories are absolutely different and each be treated in a different manner at the time of recruiting new employees.
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Group I: Effortless to find and is less valuable.
This group is not strategic and is easily outsourced. Most of them can be hired as part-timers. Their presence is not strategic and not many resources should be wasted on them.
Group II: Easy to find but quite valuable.
This group of people can make a competitive difference to the organization. They are inventors, star salespeople, engineers, and others who make your organization different from others.
Group III: Hard to find, but not much valuable.
This problematic group has unique skills that are vital for the firm, but are scarce. These people do not contribute directly to products and services of your organization, but can supplement them in unique ways.