Why Building An In-House Recruitment Team Isn’t Worth It

Talent is hard to find, especially the one that is the most suitable for your company culture and functional expectations; and it’s neither getting any easier.?

Companies suffer from talent loss due to various reasons such as Gen Z job-hopping habits, people wanting to work from an office in a remote company or vice versa. People’s mobility is a phenomenon that was never this strong before.??

Everyone is trying to solve this issue, but it’s quite the riddle: will you try to keep the talent, will you increase the role’s budget for a faster replacement, or will you fill the role internally??

Every passing hour costs the company since the workflow is disrupted. In this post, Gallup shows how a 100-person organisation that provides an average salary of $50,000 could have turnover and replacement costs of approximately $660,000 to $2.6 million per year.?

One can solve this problem by either training or hiring an in-house recruitment team; you’ll have the people to research, analyse, and understand the company needs to make recruitment decisions. Now the company’s needs would be fulfilled in no time leading to an increased efficiency with decreased costs, right??

And when the company scales successfully and its needs change, what happens then??

Scalability Challenges

Say you needed project managers to grow your business. Once you hire them, your frame of work will expand as well. And new projects require new employees so that the deadlines wouldn’t fail. As a result, you’ll need another team of recruiters that have the accurate specialisation for the new kinds of talent you need.

In PwC’s Future of Work and Skills report, published in 2021, only 26% of respondents strongly agreed they can identify the skills the organisation will need in the future due to technological change.?

The trick to scaling is the ability to adapt.?

You might think about training your staff to be adaptable with the latest technologies and topics in recruitment so that they’ll adapt to the changes in the company.?

High Overhead Costs

Training your staff, on the other hand, comes with great costs and it’s mostly not suggested for small-to-medium businesses. Sure, a big company could invest in training through overcoming organisational complexities and get their returns in years; but, small-to-medium businesses don’t have such a flexibility.

As a response to the high costs in training your employees, you might want to hire recruiters who are highly adaptable.?

If you want a superstar recruiter to have your recruitment processes organised, you’ll need to increase the budget to have salary and benefits that motivate them as well as providing them with all the infrastructure and resources they need in finding the best talent.?

After all the investments in the superstar recruiter, now you need to wait as usual for them to find the talent you need for growth.?

Resource Intensity?

Building an in-house recruitment team isn’t worth it because it’s highly resource intensive.?

If you’re hiring the team, you’ll need to have a diversity of expertise in your team so that they would be able to adapt to the changes that’ll come in years. Providing a competitive compensation package, keeping them motivated and adapted are some of the requirements that are high-cost when hiring talent.?

Training, upskilling, and reskilling of HR professionals isn’t the most budget-friendly solution either. The company will have experts to train their staff, time will pass as the staff keeps learning, and more time for adaptation.?

Conclusion

At this point, after weeks of burning resources, the companies mostly become afraid of change due to its high costs. Becoming a company with a static culture and processes might look cool; but if you try to be static in a current that is bigger than you, you’ll drift away from your goals.?

Companies, especially small-to-medium ones need to constantly adapt to survive. And one of the challenges to be adapted is the scarcity of talent.?

How is your company dealing with increased talent demand and recruitment processes??

Resources

Gallup’s Turnover Costs: https://www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx

PwC’s Future of Work and Skills, 2021: https://www.pwc.com/gx/en/issues/workforce/future-of-work-and-skills.html