6 Substantial grounds why Recruitment Outsourcing Fails

By Published May 29, 2017
Recruitment Outsourcing

Recruitment Outsourcing

Recruitment outsourcing is the right approach only for those organizations that take the time to appropriately structure an agreement to make use of vendor’s best practices. Also, drives cost reduction, empower companies to focus on its core competencies. Still, HR outsourcing can fail due to a variety of reasons.

Here we are covering the top six reasons that lead to the failure of recruitment outsourcing.

1. Inability to meet expectations

It is regarded as the top most reason for the failure of outsourcing. Organizations may find that services from an HR vendor cost more than estimated due to unforeseen cost. From the service delivery perspective, deals have fallen short. Companies are subject to the calendar of an outsourced firm, and several factors can cause your emergency to be pushed back. It is where the in-house team needed the most.

There is a significant gap between what the companies expect from outsource provider and what has been delivered by them. And, this gap can only be bridged when both the parties are following a structured plan with clear communication at all levels.

2. Poor Communication

If the contractor or outsourced HR firm do not understand what they are supposed to achieve, work might not be completed the way their client expect. For instance, a cloud software company outsourced a small IT team for its overseas location. But, half of the contracted employees do not have experience and lacks education related to the current industry. It not only delays the project delivery but cost more to the organization as they first need to train these temp-hires.

3. Loss of productivity

It typically happens with companies that outsource their IT department. For instance, when employee’s machines crash or go down, that employee will not be able to work until outsourced IT staff resolve the issue. This kind of loss of productivity is an expense cost for organizations. And, it is just one case – there are other calendar problems and response time challenges when working with outsourced firm leading to the recruitment outsourcing failure.

4. Employee Relationships

It is another significant concern that drives the failure of recruitment outsourcing. When employees are in-house, they know how to interact well with one another. It is not necessary that contractual employee will show up regularly. It means existing (permanent) employees must get used to different temp-hires and how they work. With in-house teams, employee relationships can form and solidify. Apparently, it is not possible with contractual staff. Hence, impact your office culture.

5. Liability

When a third party is brought in, there are some cases where situation or information can become a liability. It’s hard to know when the data is accidentally going to walk out of the office. Organizations need to be more proactive in implementing data protection measures when hiring contractors. Add to the fact that in-house employees are better in handling company data with care than any outsourced workforce.

6. Priority matters

Honestly, staffing agencies and outsourced HR vendors put those clients on their priority list that spends the most. If that is not you, it is not only hard to get quality talent on board, also be ready to experience delayed response time and many issues. If you are losing productivity due to your contractual staff, then ideal solution here is to hire an in-house team or start paying big bucks to HR vendors.

These are just six of many reasons leading the failure of HR outsourcing among several companies. However, it does not mean that recruitment outsourcing is a flawed system, yet it does not work for all organizations. Today, outsourcing contractual staff is easy and has its perks. Nevertheless, as soon as it starts affecting your productivity and work culture get rid of it and welcome in-house team on board.

Having said that, choose judiciously where your fortune is spent. The return could make or break your organization.

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