Recruiting: Doing it Yourself vs. Outsourcing

By: Kristina Meyer
February 4th, 2011

The shaky economy and historically high unemployment rate has changed the rules of recruiting. These days, a single job posting can produce hundreds of applicants. With an avalanche of résumés flooding in, business owners and managers are hiring outsourced recruiting services.

The number one reason small businesses fail at recruiting is because they have an inefficient process, says Dan Kilgore, principal of Riviera Advisors Inc., a talent management consulting company.

Because they have long-standing contacts in some cases and the time dedicated to hunting for fresh talent, recruiters can streamline the hiring process.

But hiring a recruiter isn’t a cure-all for everyone. Many business owners are uncomfortable handing an important task like this to an outsider. When it comes to deciding whether to outsource recruiting or do-it-yourself, there isn’t a right answer.

Doing it Yourself
According to Kilgore the three pinnacles of recruiting are cost, quality and time.  Tasks such as creating a job posting, interviewing and even starting the search take up more time than you’d think. There is no perfect method to recruiting new employees. What works and what doesn’t will vary from businesses to business.

However, keep in mind that when recruiting on your own, the biggest asset you’ll need is time.

A large part of recruiting is researching. You’ll spend a great deal of time collecting information about the job, including the market salary, skill requirements and experience level. Kilgore says that this can be done by simply observing your current staff.

“Look around. What’s making them successful?” says Kilgore. “Good job analysis is based on success factors.”

Once you have a good handle on the type of candidate you’re looking for, you’ll need to compose a job posting or advertisement. The key to creating a good job posting is to be as specific as possible. Kilgore says you need to stop and think who your target is.

“What makes it [the job] exciting for them?” says Kilgore. This will help you appeal directly to that particular group so that you get more relevant applicants.

The secondly most time-intensive part of the recruiting process comes through weeding out résumés.

“The incredible overabundance of candidates makes it hard to funnel applicants,” says Kilgore.

Be prepared to spend hours reading through résumés and sorting the out the good from the bad. To help you whittle down the possibilities, Kilgore recommends you do some further digging by sending out a short survey that will delve further into a potential candidate’s experience, personality and skill set. A simple phone interview can also be helpful.

Getting the word out about the job opening should also be carefully considered. Job boards like Careerbuilder.com and Monster.com are good sources, but expand beyond that. Relying solely on the job boards restricts your reach and limits your options.

Kilgore suggests heavily networking and putting the word out on social networks. He says that oftentimes good employees get comfortable in their job and don’t seek out new career opportunities, but that doesn’t mean they aren’t interested. Putting the word out through your networks can bring the message to these candidates that aren’t actively looking.

According to Jobvite’s 2010 Social Recruiting Survey, 83 percent of the businesses polled currently use, or are planning to use, social media sites to recruit employees. To be a successful social recruiter, you have to stay active. Do so by constantly participating in discussions with your contacts, joining new groups and posting current newsfeeds about what’s going on in your business.

Finally, when it comes to interviewing candidates, that’s another thing you’ll have to carve into your schedule. Don’t be surprised if you come up empty handed after your first round of interviews. You might have to go back to square one and tweak the process a few times before you start drawing in candidates with real potential.

Carol Quinn, CEO of Hire Authority says that you shouldn’t neglect any applicants while you’re trying to make a decision.

“Romance all your candidates while you consider who you’re going to hire,” says Quinn.

Stay in contact with your potential hires as you continue your search. And once you’ve made a decision, notify all candidates, but don’t cut off the relationship completely with the most promising candidates. Those that were at the top of your list might turn out to be useful contacts in the future.

Outsourcing
Kilgore says that if your recruiting needs are labor intensive, cumbersome or cyclical, you might want to consider outsourcing your recruiting tasks. He says that a recruiter can come in very handy when it comes to sifting through a large pool of candidates.

“Recruiters can help you get through the fat part of the funnel real quick,” says Kilgore.

If you don’t have the resources to select a full-time recruiter, you might be able to outsource some of your staffing tasks.

But keep in mind that you may not be a recruiter’s only client. An outsourced recruiter works for multiple businesses, working as a third-party that does everything from writing and posting the job advertisements, screening candidates, setting up interviews and more.

Good recruiters take their knowledge of the current market and the details you provide about the job opening to create a very precise and focused advertisement. Most of them know what keywords to incorporate so that the posting attracts the most relevant applicants.

They are immersed in the job market every day. This exposure gives them an inside knowledge of the trends and expectations of professionals throughout many different industries. They’re in constant contact with a variety of people and many of them have a well-established network of connections that allows them to reach more than just the average job board browser. Many times this network allows a recruiter can reach the higher-level candidates that may not be actively seeking a new position. Unlike you, recruiters have the time to nurture these relationships until such a time when they are able to be of use.

Additionally, most recruiters are now using social networks to give them a leg up on the search. Most of them are avid visitors that have active connections with different groups and contacts from all over. These relationships can help them track down potential hires that are hidden in the cracks of the market.

A recruiter will do most of the pre-screening and phone interviewing. They will weed out irrelevant candidates so that when it comes time for you to do the face-to-face interviews, you’re only meeting with candidates that show the most potential. Your recruiter will help you schedule and prepare the interviews.

Once you’ve met with the candidates, they can also help you arrange any additional steps such as personality assessments and background checks. In the end, choosing the employee is your decision, but if you need it, the recruiter, who should have an ability of reading people, is there to be your brainstorming partner.

The Take Away

While hiring a recruiter may seem like a quick fix, Kilgore warns that for outsourcing to be successful, business owners still need to be able to effectively communicate their company’s needs to the recruiter. He says that if you don’t have a clear understanding of the position or the skill requirements, you will put the recruiter on the wrong track.

“This will force vendors to choose less than ideal employees,” says Kilgore.

Whether you’re using a recruiter or taking the DIY approach, before you go to market, make a shopping list. Know what you’ve got to have. If hunting and searching for this perfect employee deserves more attention from your calendar, then consider handing it off and hiring a recruiter.

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