3 Crucial Considerations You Need to be Mindful of Before Starting In-house Recruitment
Talent shortages in America have risen to record levels in more than a decade, with 69% of employers having difficulty filling jobs.
This is the exact reason why skilled recruiters are significantly in demand right now. Many companies are looking at getting an in-house team to ramp up their hiring efforts.
However, for those businesses that have been solely relying on recruitment agencies to help them with their hiring and onboarding requirements, the decision to move in-house can be a challenging one.
If you are contemplating whether or not you should opt for internal recruitment, here are a few crucial factors to consider before hopping onto the other side of the fence. Let’s look at the basics of in-house recruitment first.
When Does Starting In-house Recruitment Make Sense?
The first and foremost step to determining whether an in-house recruitment team will be beneficial for your business is to lay out your requirements and expectations regarding what changes you want to see if you go ahead and deploy one.
- Are you willing to fill in multiple specialized positions in a comparatively short period?
- Do you constantly find yourself going overboard with your current recruitment budget?
- Are you trying to achieve hyper-growth or scale quickly to expand your business?
If your answer to these questions is yes, then it is time to start in-house recruitment for your business, irrespective of whether you’ve only started or are an established industry leader.
1. Consider the Number of Senior Level Positions You’re Aiming to Fill
In Hunt Scanlon Media’s recent survey of human resource and talent acquisition professionals, nearly all correspondents reported using an in-house recruiter to fill at least some senior-level or specialized positions.
The trend to bring more recruiting work back inside is advancing rapidly. Survey respondents reported a 35% rise in in-house recruiting in the last five years. Additionally, more than 75% of all open positions could be handled internally or by in-house recruiting methods in the next decade.
Many forward-looking business leaders are now realizing the benefits of an in-house recruitment model (especially when it comes to volume hiring for specialized positions) and designing their frameworks so that this approach is followed right from the time the company begins to expand.
2. Evaluate If the New Model Will Help Cut Down Costs
According to one recent report, each vacant position costs the average company $500 per day.
Therefore, filling a vacant job description at the earliest time possible should be a top priority for all hiring managers trying to cut unnecessary costs and target growth and sustenance in the long run. When starting in-house recruitment, one of the prerequisites would be to determine whether or not the new model will help you attain these two goals.
Some research sheds light on this topic: “Agency search firm fees can amount to 35% of a new employee’s annual base salary. Typically taken from the hiring department budget, these fees may not be visible to HR. By relying on internal mobility programs, referrals, candidate pipelines, and corporate career websites, organizations can reduce or eliminate this agency spend.”
“You can realize significant cost reductions by placing all job positions on your corporate career website. This will allow you to reap a substantial number of candidates at minimal cost compared to job boards and other sourcing options.”
3. Determine If You’re Trying to Achieve Hyper-Growth/ Scale Quickly
Another critical consideration you need to be mindful of when starting in-house recruiting is assessing whether you want to scale quickly or achieve hyper-growth.
Fundamentally, in-house recruitment is nothing but an amalgamation of conventional recruiting agency recruitment activity (candidate management, sourcing, posting job descriptions, scheduling interviews), coupled with more involvement in operational, administration, and employee development techniques.
Additionally, in-house recruiters are involved in the hiring process at a much earlier stage than agency recruiters. The former helps to plan, allot adequate amounts of the budget, and facilitate hiring in a time-scheduled manner. They also work closely with your hiring manager from various departments to help shape your recruitment process and pipeline and can help you find more diverse candidates for your company’s open positions.
According to LinkedIn’s Global Talent Trends 2020 Report, employees stick around 41% longer at organizations that use inside recruitment.
This is especially true because in-house recruitment gives employees a higher sense of involvement. The longer your resources stick around with you, the easier it will be for the business to achieve a hyper-growth stage.
In a recent interview, Sun Pharma’s EVP and HR Chief Yash Mahadik told the spokesperson, “We have built a small team of people who have come with significant amounts of search firm experience, and they form our in-house executive hiring cell. With the success that we have tasted so far, we are now scaling up the team.
“Our objective is to backfill 90% of vacancies arising out of our top 300 leaders of the company worldwide by growing our own internal talent and utilizing our in-house hiring expertise to support this. Given the way we are progressing with our talent management and acquisition, we feel confident of achieving this objective within the next two to three years,” he continues.
Many businesses, both small and large, are now realizing the importance of in-house recruiting and optimizing the process to expand their team and achieve growth faster.
Help Your In-House Recruiters Today
An internal recruiter can considerably help bridge the gap between employees and the higher management.
It can strengthen your recruiting team’s commitment and dedication toward your company and make them feel valued when done right.
To know more about how you can leverage the right tools, techniques, and channels to excel at in-house recruiting, get in touch with us at Recruiter.com. While we’re a recruitment agency, we can help you with various steps in your recruiting process and be an asset to your hiring team.
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