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Employee Recruitment: Outsourcing Human Resources Function of Finding, Attracting and Hiring Capable and Qualified Employees - Research Paper Example

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Outsourcing HRM Functions: Recruitment and Selection Introduction In the recent past, the competitive environment for many organizations has changed, with the organizations having to operate in globally capitalized environments, rapid industrialization, and changing technology (Abraham, 1988)…
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Employee Recruitment: Outsourcing Human Resources Function of Finding, Attracting and Hiring Capable and Qualified Employees
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Download file to see previous pages Some organizations delegate crucial human resource functions to outside firms as a means of utilizing available expertise, reducing expenses, and to be able to concentrate on important business activities (Abraham and Taylor, 1996). With the increasing levels of globalization, technological changes and the complexity of business functions, the current labor functions all influence an organization’s decision to get outside help in the core functions of HRM. The recruitment, selection and training of employees can be outsourced by an organization since it usually refines demand for the provision of products and services, helps in providing constant workflow, reduces labor commitments, and reduces administration functions to the important functions (Varadarajan, 2009). The use of external agencies also helps because they provide many benefits since they are specifically set up to handle the recruiting function. However, outsourcing crucial human resource functions may not be a simple decision for an organization to make. The main problem that an organization can face is when the organization fails to differentiate between recruitment outsourcing as a strategic or tactical decision (Gilley and Rasheed, 2000). The outsourcing firm can view the recruitment process as a step in building a business relationship with the client company and recruited employees. This would help the recruitment provider in having the continued business services of the client firm. However, with the current state of the economy and the need for cost-consciousness, outsourcing of employee recruitment is sometimes viewed as a tactical decision by the parent firm. However, the process can be potentially destructive to an organization’s culture, since the outsourcing firm is usually hinged on helping itself (Gilley and Rasheed, 2000). This means that the difference in organizational culture can be a potential drag in the culture of the recruited employees. Recruitment Outsourcing Organizations usually have to decide whether they will conduct the recruitment and selection process in-house or by buying the function from an external provider (Uttamkumar and Kinange, 2011). When a firm decides to outsource the business function of hiring, the process usually involves developing a relationship with another firm, which also involves the development of risk. In this case, it is important for a firm to distinguish between outsourcing the business process and contracting one aspect of the recruitment process. Since the outsourcing process is usually a long-term process, the parent firm usually enters into a long-term contract with the outsourcing specialist firm. Conversely, the process of contracting out the recruiting service is usually one-off, where the firm assigns individual business functions to an external; firm, which can be done on a job-by-job basis (Ogburn, 1994). Outsourcing the recruitment function has a number of benefits to the parent firm, but the main advocate of the process comes from the strategic and tactical advantage that the process offers to the firm (Alexander and Young, 1996). Strategic outsourcing of a firm’s functions is a process that seeks to develop a long-term relationship with a contraction firm, which will in turn help in the cost-reduction policies of an organization. This also helps in the development of credibility and trust by both parties to the agreement. This ensures that the services provided by the outsourcing ...Download file to see next pagesRead More
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