Benefits of Third Party Recruitment
Benefits of Third Party Recruitment Kainat Siddiqui (M.Com, M.B.A) Asst. Professor KIPM- College of Management GIDA, Gorakhpur
Abstract
A third party recruiter or an employment agency acts as an independent contact between its client companies and the candidates it recruits for a position. These firms or individuals specialize in client relationships and finding candidates, with minimal or no focus on other HR tasks. Most recruiters tend to specialize in permanent, full-time, direct-hire positions or contract positions, but occasionally in both. It is followed by middle and large sized organizations and being witnessed by all industries. In India HR processes are being outsourced from nearly a decade now and the industry is growing at a high rate. Does the third party recruitment system has the potential to fundamentally change the recruitment cost structure. Suppose, if hiring patterns are seasonable or cyclical, the fixed cost of maintaining a recruitment function in house during the quiet times, so that it is ready to go when needed, essentially becomes a sunk cost for the business. By establishing a variable cost structure with the provider, it gives the opportunity to establish better value for money, as your recruitment costs are truly paying towards your recruitment outcomes.
Objective of study:- The basic objective of this study is to analyse the benefits of the third party recruitment system and whether this system is really saving the cost of recruitment of the organizations.
Introduction:- Many organizations have started outsourcing its recruitment process known as recruitment process outsourcing (RPO) i.e transferring all or some part of its recruitment process to an external consultant providing the recruitment services. It involves paying a fee to leasing
Abstract
A third party recruiter or an employment agency acts as an independent contact between its client companies and the candidates it recruits for a position. These firms or individuals specialize in client relationships and finding candidates, with minimal or no focus on other HR tasks. Most recruiters tend to specialize in permanent, full-time, direct-hire positions or contract positions, but occasionally in both. It is followed by middle and large sized organizations and being witnessed by all industries. In India HR processes are being outsourced from nearly a decade now and the industry is growing at a high rate. Does the third party recruitment system has the potential to fundamentally change the recruitment cost structure. Suppose, if hiring patterns are seasonable or cyclical, the fixed cost of maintaining a recruitment function in house during the quiet times, so that it is ready to go when needed, essentially becomes a sunk cost for the business. By establishing a variable cost structure with the provider, it gives the opportunity to establish better value for money, as your recruitment costs are truly paying towards your recruitment outcomes.
Objective of study:- The basic objective of this study is to analyse the benefits of the third party recruitment system and whether this system is really saving the cost of recruitment of the organizations.
Introduction:- Many organizations have started outsourcing its recruitment process known as recruitment process outsourcing (RPO) i.e transferring all or some part of its recruitment process to an external consultant providing the recruitment services. It involves paying a fee to leasing
References: - 1. Linda K Stroh(2003) “Outsourcing HR Functions: When and when noy to go outside,”Jounal of Leadership and Organizational studies, Vol 10 Iss.1 pp. 19-32. 2. (http://recruitment.naukrihub.com/oustsourcing-recruitment.html) 3. Eric Krell, “Recruiting Outlook: Creative HR for 2003.” 4. Sarh Gale, “Internet Recruiting: Better, Cheaper, Faster,” Workforce, December 2001, p.76. 5. Ruth Thaler-Carter(June 2001), “Diversify Your Recruitment Advertising,” HR Magazine, pp. 92-100. 6. Martha Frase-Blunt(April 2002), “Job Fair Challenges for HR,” HR /magazine, pp62-66. 7. Marsha Austin(January 14, 2003), Denver Job Fair Draws Record 8,300 job seekers,” Knight Ridder Tribune Business News, p.1. 8. John M Ivancevich, “Human Resource Management”, 10th edition.