Outsourcing the talent acquisition function can be a very expensive undertaking. If not done right, startups could spend thousands on outsourcing solutions. This expense is cost-prohibitive for startups, making it seem out of reach. In this article, we’ll cover why startups should consider this option and how they can do so affordably.
Why startups should outsource talent acquisition
Startups are under tremendous pressure to hire quickly to meet their goals. Outsourcing talent acquisition partially or entirely saves time and allows startups to quickly make crucial hires. For instance, if a startup needs to hit revenue targets in a few months, they need to hire the right sales and marketing talent quickly to achieve their goals. Waiting to first hire a recruiting team could cause them to miss their financial targets.
Outsourcing talent acquisition saves money because startups can bypass the expense of building an internal recruiting team right away. They can leverage a talent acquisition partner’s expertise without the expense of building an internal hiring team. Startups can also avoid the mistakes of possibly making the wrong internal recruiting team hires.
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How startups can affordably outsource talent acquisition
Today, startups have more options than ever. There are some providers who do not require long-term contracts. Others offer on-demand recruiting which allows startups to scale up or down according to their needs. There are others offering specific talent acquisition services to fill specific needs of the startups, i.e. sourcing, etc.
What saves time and money is choosing the right model and doing the upfront legwork. Doing things like aligning organizational and hiring goals and assessing internal hiring capacity is essential. Here are the steps startups can take to outsource this function affordably:
1. Identify organizational goals that require hiring resources
To save time and money, identify your startup’s goals and how they link to your hiring needs. If you don’t start with this, you run the risk of hiring for the wrong roles. For instance, if your primary goal is to increase brand awareness, your hiring will be focused on marketing. Or, if your primary goal is to increase closed deals, your hiring will be focused on sales.
Identifying your organizational goals saves time and money because your efforts will be focused on making precisely the right hire to hit your goals. You’ll avoid wasting time and money involved in making the wrong hires. And you’ll know exactly how to direct any talent acquisition provider you decide to work with.
In our new ebook, Startup Hiring: The Ultimate Guide to Scale Quickly, we cover the importance of basing your hiring decisions on organizational goals. Download the guide here!
2. Assess capacity and expertise of your internal hiring resources
Depending on the size and experience of your startup’s hiring team, you may or may not have the resources to make the right hires. If you only have one person in your company responsible for hiring and you need to hire 10 specialized roles in 2 months, you need a hiring solutions partner. Connect with your hiring team. Find out what their capacity is. And if capacity is limited, consider talent acquisition outsourcing.
Your team may have sufficient capacity but may lack experience in hiring for specialized roles. For instance, your hiring team may be great at hiring software engineers, but has no experience in hiring to build sales teams. If your startup is in this situation, outsourcing talent acquisition may be right for your company. You’ll save money by outsourcing if you absolutely need to.
3. Determine whether or not outsourcing talent acquisition is right for your startup
There are other factors to consider besides capacity and expertise. For instance, one consideration is cost per hire. Even with sufficient capacity and expertise, your company may not have an efficient or effective hiring process. This can lead to higher costs per hire and increased time to hire. If you need to improve time to hire and cost per hire, outsourcing may be right for you.
4. Choose a talent acquisition partner right for your startup
Startups have more talent acquisition partner options today than ever before. Some providers offer solutions that don’t require lengthy, cost-prohibitive contracts. Others offer on-demand solutions that allow you to scale up or down as needed. To choose the best type of partner, two important considerations include budget and flexibility.
Comeet offers a solution specifically for startups called Elastic Recruiting. It’s a talent acquisition solution that provides on-demand, end-to-end services powered by best-in-class technology. Elastic Recruiting supports high-growth companies looking to scale faster, with trusted expert talent partners, and without annual contracts. Learn more about our services here.
The Wrap Up
Outsourcing talent acquisition can be costly if the necessary steps and key considerations are not taken into account. If not done right, startups could spend thousands on outsourcing solutions. By assessing your needs, considering your budget, and selecting the right partner, you can do this affordably.
