Whether being a small startup or a multinational firm, it can be extremely annoying to spend hours and hours to review resumes of applicants received against the recent job ad in newspapers and web portals. It becomes terrible when you have to practice it regularly twice or thrice in a month. Startups and established setups that are expanding their operations frequently need full-time or part-time staff to fill up the vacancies. As they are establishing and expanding their setup, they are busy with core business activities. During the circumstances, it’s become difficult for them to oversee the staffing issues. They can simply execute their needs after availing the services of third party recruitment agencies. All they need to do is to contact with a reliable consultant to fulfill their needs.

Irrespective of its size, any company can outsource recruitment function if it finds it’s suitable. Here I am sharing key reasons to show why outsourcing human resource function has become a common trend.

To save good money

For an entrepreneur, running an HR department can be very expensive due to high salaries, taxes and benefits. Secondly, it also adds up significant headcount, which is sometimes difficult to accommodate due to shortage of space. In contrast to that using a third party firm will not only enable you to save good money from salaries, but also minimize the in house paperwork. You only need to pay a reasonable monthly fee and for that you will get quality recruitment services from certified professionals, who are truly capable to understand your needs.

To focus more on business activities

As you have hired a professional recruitment agency to oversee the employment issues for your firm, you will have more time to concentrate on core business activities. HR professionals have proven skills to carry out hiring processes efficiently. They sift through the applicants CVs, conduct initial interviews to forward you only the most suitable candidate for specific positions. This will save your valuable time, which you will consume in designing strategies to grow the business.

To minimize legal complications

Every entrepreneur has to follow state rules and regulations to maintain a reliable image in the industry. The larger the firm’s size the more regulations it has to follow. Sometimes, it becomes difficult for an owner to understand all the laws associated with termination, sexual harassment or any other kind of employer and employee related issues. Working with an agency will give you the complete peace of mind and minimize the exposure to legal conflicts.

To concentrate on business strategy

Having been a time consuming and money spending function, most of the entrepreneurs feel uncomfortable to handle HR functions in their organization. As they are into too many things, they consider it as a distraction. They feel helpless, as they are unable to focus on their core business strategy. In contrast to that appointing a suitable HR firm, empowered them to maintain better compliance in their firm.

To improve overall hiring processes and efficiencies

Staff recruitment has no longer remained limited to simply picking up an individual to fill the vacancy; rather it has become a cumbersome set of administrative functions. It becomes difficult to manage for employers, who are busy in the strategic development of their business. Being time consuming and complex, HR functions should be tackled carefully to avoid picking the wrong candidate. Instead of recruiting staff, it also involves maintaining worker information, compensation claims, termination processes and new employee orientation. It’s difficult for an entrepreneur to manage these issues, while focusing on core business processes. Contracting a third party will facilitate business owners to improve hiring processes.

Summary: These are few compelling reasons, enticing business owners to outsource their recruitment functions to a third party. You may also avail the benefits if you are at the stage of setting up your business.