Insourcing vs. Outsourcing

Faced with a double-dip recession, tight purse strings and a crackdown on new staff, two years ago FDs drastically changed the face of recruitment. With many opting to avoid the fees often associated with outsourcing, HR and recruitment departments started to pop up within the corporate environment.

Whilst the quick fix may have worked in the short term, internal departments are now struggling to attract the talent due to lack of expertise and dedicated technology. With a large candidate pool, external recruitment agencies have the upper hand, not only due to experience and expertise but, critically, the depth of candidate information available from the internal dedicated database. It is this combination of insight and experience that is key to effectively sourcing, searching and placing the right applicants. Compare this to the ‘LinkedIn’ approach commonly used by internal departments and the divide becomes evident.With 37% of senior HR professionals admitting that HR departments are poorly defined and undervalued, understandably in-house recruiters are keen to prove their worth to the board. Whilst implementing dedicated equipment and ongoing training can be prohibitive, enlisting consultancy advice can come at a fraction of the cost.