Outsourcing Staffing: Why 88% of Organizations Choose to Outsource Staffing and How You Can Do it Too 

Outsourcing Staffing: Why 88% of Organizations Choose to Outsource Staffing and How You Can Do it Too 
Article by DesignRush DesignRush
Last Updated: November 18, 2022

88% of organizations rely on recruitment process outsourcing to staff their businesses with the right workforce. 

But wait — what are talent acquisition specialists then, and isn’t that their job? 

Yes, but you can have third-party experts help you with the hiring process if you decide outsourcing staffing is the best move for your business. 

And why shouldn’t you?

This way, you can gain access to the expertise of a dedicated team of talent acquisition specialists, minus the need to provide them with office space! 

Whether you’re thinking of hiring an assistant, bringing more customer service representatives on board or even outsourcing payroll to a third-party company, a staffing firm can help you find the right person or team for the job. 

And we can help you find the best staffing agency! 

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What Does Outsourcing Staffing Entail?

Staffing is the process of recruiting, hiring and managing employees. 

Instead of handling these tasks internally, a company can contract with an outside firm to provide these services. That’s what we call outsourcing staffing. 

There are many reasons a company might outsource staffing, including cost savings, access to a larger pool of talent, and increased efficiency. 

Outsourcing firms are experts in their field and can often get you the best talent for a fraction of the cost of an in-house team. 

They also have the resources to handle the entire process from start to finish, so you don't have to worry about dealing with the hassle and paperwork. 

These firms are usually much more flexible than in-house teams, so they can adapt to your changing needs and requirements.

However, outsourcing staffing can also lead to some challenges, such as a loss of control over the hiring process and difficulty building a strong corporate culture, but we’ll get to that later. 

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Benefits of Outsourcing Staffing 

When you're running a business, it can be hard to keep your hands on the wheel at all times.

That's why outsourced staffing services is so appealing—it allows you to focus more on your core functions and access additional personnel that can help make those tasks run more smoothly. 

Let’s explore the top six reasons why businesses choose to outsource their workforce needs:

Hassle-free Recruiting

Recruiting can be a time-consuming and often frustrating process.

You'll have to post job ads and sift through resumes—a lot of them. Each corporate job opening attracts around 250 resumes.

After checking the CVs, you have to conduct interviews, and once you've finally found someone, you'll have to train them and hope they stick around. It's a lot of work—and it's not even guaranteed you'll end up with good staff.

But, if you opt for staffing outsourcing services, you only need to make one hire, and that’s your recruiting firm.

Outsourced staffing firms handle everything from hiring to training, and they'll only send you qualified candidates who are likely to stick around.

They use a variety of methods to identify potential candidates, including job postings, online tools, and networking. And they have the experience and resources to screen candidates and evaluate their qualifications. 

This can be a huge relief, especially if you're not familiar with the process or don't have the time to devote to it. 

Cost-effectiveness 

Staffing costs quickly add up. 

In addition to salary, you have to think about the training and development expenses.

Let’s not even mention the costs associated with recruiting activities. From posting on job boards and background screenings to recruitment technology and applicant tracking systems, the stakes are high. 

One way to save money on these costs is to outsource your staffing needs. 

By working with a staffing agency, you can get the workers you need without having to pay for all the associated costs. 

Staffing agencies can provide you with employees who are already trained and experienced, and they can also handle all the paperwork and red tape associated with hiring new staff. 

Reduced Turnover Rates

Outsourcing can also help improve employee retention. 

When you outsource, you can get access to a pool of highly qualified candidates interested in working for your company in the long run. 

Two in three workers accept a job only to realize it isn’t the right match and half of them quit in six months or less. What’s even more concerning is the cost of replacing those employees, as it ranges from one-half to two times the individual employee’s yearly salary. 

Having an expert handle your staffing needs can significantly reduce turnover rates, directly saving your business money.

What’s more, staffing agencies typically offer clients access to job satisfaction surveys so they can track employee satisfaction levels and address any issues that arise.

Focus on Your Core Business

It can be tough to find good help these days. You want to focus on your core business, but you can't function without a dependable staff. 

If you don’t have time to manage employees or deal with HR issues, choosing to outsource staffing allows you to do what you do best and leave the staffing to someone else. 

This can take a lot of the pressure off of you. 

If you neglect the core of your company, you can’t scale and grow, which is a risk you can’t afford to take. 

That’s how crucial staffing outsourcing services can be. Although indirectly, they can make the difference between a successful and unsuccessful business. 

Access to a Wider Pool of Talent

As your business grows, your staffing needs are going to change. And while you might be able to handle all of the hiring internally at first, there will come a time when you need to outsource your staffing needs to access a wider talent pool. 

Staffing agencies typically have a larger network of potential employees than businesses do. 

They can help you find the suitable candidates for any position and navigate the ever-changing world of employment law. 

Additionally, these agencies use sophisticated screening methods to ensure only the most qualified candidates are put forward for consideration.

This is a major plus considering 54% of organizations claim the quality of the workforce is the number one challenge they face when hiring.  

The right agency can even provide you with ongoing support, ensuring your staff remains productive and happy.

Workforce Flexibility & Boosted Efficiency

As you can tell, staffing needs can be a big drain on company resources, both in terms of time and money. 

However, outsourcing staffing can reduce cost-per-hire by more than 20% and reduce time-to-hire by up to 55%. 

Aside from this, you can enjoy a number of benefits, including increased workforce flexibility. 

If you hire a staffing firm, you can quickly and easily adjust the size of your workforce to meet changing demands. This can be a huge advantage during busy periods or when you're expanding into new markets. 

Guide to Outsourcing Staffing

When it comes to staffing, every business has different needs. Some require a large, full-time workforce, while others may only need a few part-time employees.

Some companies may have the resources to handle all of their staffing needs internally, but others may find it more efficient to outsource some or all of their staffing requirements. 

So how does a business go about outsourcing its staffing needs? 

There are a number of ways. 

Recruitment process outsourcing (RPO) providers are one of the top ways to outsource staffing for your businesses. RPOs provide businesses with access to a wider pool of potential candidates and can also handle all of the screening and interviewing process on behalf of the business.

Another option is to use a temp agency. 

They provide businesses with short-term or long-term employees as needed. They are also a good option for organizations that need employees with specific skillsets or experience levels. 

There are many online staffing platforms too, such as Upwork.

You can reach out to Upwork’s talent scouts to tell them more about your project. After they’re done selecting the top candidates based on your expectations, you can go ahead and choose the best fit.

To make the right decision, you need to evaluate your staffing needs.

Research different outsourcing companies and compare pricing and services. Consider different outsourcing arrangements before settling on one. 

Depending on your budget, you can choose from different payment plans such as payrolling, where the business pays the outsourcing company for its services, or project-based, where the business contracts with the outsourcing company for a specific project or task. 

There are all kinds of arrangements, each with its own benefits and drawbacks, so it's important to choose the one that's right for your business' needs.

Outsourcing Staffing Challenges

Any company that outsources staffing is bound to face some challenges.

While it can save the company money and free up internal resources, there are also a number of challenges that can arise. 

For example, the company may have difficulty communicating its needs to the staffing agency, or it may be dissatisfied with the quality of candidates the agency sends. 

Moreover, it's hard to form a personal connection with someone when you're not in the same room. And without that connection, it can be difficult to build trust. 

In some cases, language barriers can make communication difficult, and time differences can make it tricky to coordinate schedules.

However, there are a number of ways to overcome these challenges. 

By carefully selecting a staffing agency that has experience working with businesses like yours and clearly communicating your needs and expectations, you can ensure a smooth and successful outsourcing experience.

For example, regular video calls can help bridge the physical distance between staff members, and clear and concise written communication can help overcome language barriers. 

By taking steps to overcome these challenges, companies can ensure that outsourcing staffing is a successful endeavor.

Outsourcing Staffing: Key Takeaways 

Much like PEO and employee leasing, staffing outsourcing services help businesses manage their workforce better.

By outsourcing to a staffing agency, you can bypass all of the recruiting and interviewing process, and let the experts find the best employees for your business. 

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