Why Do Staffing Agencies Hire Offshore Recruitment Services?

Outsourcing to offshore RPO providers is a compelling alternative approach adopted by recruitment and staffing agencies to tackle their increasing hiring expenses. Experienced RPO providers offer a wide range of recruitment support services while allowing staffing agencies to attain scalability, flexibility, and cost-effectiveness.

The selection of an offshore recruitment services provider should not be taken lightly and must be done after carefully evaluating your hiring needs.

A research report by The Society of Human Resources Management (SHRM) indicates nine common reasons staffing agencies outsource their recruitment process. Saving money, focussing on business strategy, improved compliance and accuracy, advanced IT support, core business functions, varied services, and access to skilled HR professionals are among the most common reasons to outsource HR functions.

In this article, we will explain in detail five reasons staffing businesses outsource to offshore recruitment agencies and how they can benefit by improving their recruitment process.

5 Reasons Why Staffing Agencies Hire Offshore Recruitment Services

1. Focus on Core Areas

Staffing agencies need to focus on their core business functions, such as developing new business strategies, brand promotion, recruitment etc., to remain competitive. Payroll, timesheet management, accounting, compliance checks, referencing, crafting, reviewing, and renewing contracts of temp workforce, salary processing, and invoicing are some of the other critical administrative functions which can take up a lot of their time. Outsourcing these business processes to an RPO service provider allows staffing and recruitment firms to focus on their core business activities.

One of the most significant advantages of recruitment process outsourcing is giving all complicated and time-consuming administrative work to RPOs and improving the business’s overall efficiency. Moreover, RPO providers have the right resources, skilled staff and advanced technology to complete such administrative processes in less time and less money than the full-time staff at recruitment agencies.

2. Scalable Business Solutions

The staffing and recruitment industry in the US is rapidly growing, making significant contributions to the US Economy. In 2021, the US Staffing and Recruiting industry sales grew by 20%, providing job and career opportunities to almost 13.6 million employees (Source: American Staffing Association).

Staffing companies serve businesses across industries helping their clients achieve workforce flexibility and access to talent. But there are a lot of other activities staffing companies have to take care of behind the scenes to keep up the rapid pace of hiring. Payroll, accounts management, compliance, office management, CV formatting, employee checks and verification, recruitment, onboarding, and human resources are just a few of those functions.

If staffing agencies want to scale their business cost-effectively, they should consider outsourcing solutions. An offshore RPO provider can help staffing agencies bring operational efficiencies and scalability to their business. Staffing agencies can focus on key business activities by outsourcing middle-office and back-office tasks to RPO companies.

3. Cost Saving

One of the most important reasons to outsource to RPOs is cost-cutting. Staffing and recruitment companies can cut their costs with the help of outsourced services from an offshore RPO partner. They can assist in compliance services and reduce the chance of human error or human resource disputes. Offshore recruitment agencies have streamlined processes and use advanced recruitment technology and automation support to make recruiting more efficient and cost-saving.

It has emerged over time that cost-effectiveness is often the main reason for staffing agencies to outsource recruitment process. RPO solutions can eliminate the need for in-house human resource managers and other resources for the recruitment process, significantly lowering administrative costs and overheads for staffing agencies.

4. Improved Compliance

Outsourcing recruitment processes to offshore RPO companies make compliance less burdensome for staffing agencies. Compliance procedures can be quite a hassle for staffing and recruitment businesses. As recruitment agencies work with different industries and sectors, they must follow other compliance procedures for their workforce. The internal team must constantly update themselves with the ever-changing tax regulations, employment policies, and compliance procedures. Outsourcing reduces this burden facilitating staffing companies to efficiently deal with accounting, finance, tax, payroll, administrative, and compliance processes.

Also See: 4 Compliance & Admin Processes Staffing Agencies Can Outsource

5. Ease of Hiring Foreign Workers

When staffing agencies engage in foreign worker recruitment, they have to deal with complex tax laws, international employment policies, insurance and accommodation arrangements. In addition, national and international government regulations must comply when hiring a global workforce. An offshore outsourcing company has the expertise to handle all these regulatory and compliance processes. It can help reduce the risk of non-compliance or errors by the in-house team.

Outsourcing Solutions for Staffing Agencies with Top RPO Company

Staffing companies can benefit from offshore RPO companies by outsourcing the recruitment process. QX Global Group is one of the top offshore recruitment agencies in India which offers onshore and offshore recruitment outsourcing services. Staffing agencies can outsource talent sourcing, MSP, VMS staffing, permanent and temporary staffing, payroll management, compliance and administrative services, and finance & accounting services to QX Global and benefit from up to 60% cost savings.

Get on a free consultation call with our expert to learn more about how your staffing agency can take advantage of recruitment outsourcing solutions.

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Originally published Jul 04, 2022 03:07:43, updated Feb 05 2024

Topics: Offshore Recruitment Services, Recruitment Outsourcing Services