Topics: Full Cycle Recruiting, full recruiting life cycle, full-cycle recruitment process, Outsource Full Cycle Recruiting

Can Outsourcing Full Cycle Recruitment Help Staffing Companies Save Costs? Let’s Find Out!

Posted on April 22, 2024
Written By Ranjana Singh

Can Outsourcing Full Cycle Recruitment Help Staffing Companies Save Costs? Let’s Find Out!

In the current job market, where competition is at its peak and there’s a well-known talent shortage, finding qualified candidates to fill your vacant job positions is a significant challenge. Moreover, it becomes even more stressful when you are required to manage all of this while keeping costs in check.

As the leader of your staffing company, you are aware of how in-house full-cycle recruitment processes can be resource-intensive and financially burdensome.

Research from the Society for Human Resource Management shows that the time and resources needed for talent acquisition have driven up the average cost per hire to $4,700.

This is where outsourcing full-cycle recruitment emerges as a viable solution that not only saves costs but also delivers several strategic benefits.

How Costs Increase When You Handle Full-cycle Recruitment In-house

Full-cycle recruitment, which includes everything from sourcing candidates to onboarding, is a comprehensive approach that aims to streamline hiring. When you manage it in-house, it can lead to several direct and indirect costs like:

1. Resource Allocation: Internal staff spend significant time and effort on sourcing, screening, and interviewing candidates, diverting their focus from other core activities.
2. Advertising and Technology: Job postings, applicant tracking systems, and recruitment software subscriptions come with associated costs.
3. Opportunity Costs: Extended vacancies or hiring the wrong candidate can result in lost productivity and potential revenue.
4. Expertise and Training: Staying updated with recruitment trends and compliance regulations requires continuous investment in training and development.

Why Full Cycle Recruitment Outsourcing?

Outsourcing full cycle recruitment involves partnering with an offshore recruitment service provider to manage the entire recruitment process, from sourcing and screening candidates to onboarding selected hires. This outsourcing model allows businesses to leverage specialized expertise, technology, and networks of talent while reallocating internal resources towards core business functions.

How Can Full-Cycle Recruitment Outsourcing Save Costs?

By outsourcing your recruitment process, you can save on costs associated with recruiting, such as advertising, interviewing, and training. The savings sometimes are as high as 60% to 75% and an average of 35% by an expert offshore recruitment service provider in comparison to a traditional staffing team.

1. Cost Savings: Outsourcing eliminates in-house hiring expenses like HR personnel, technology, job advertising, and recruitment software costs.
2. Resource Focus: It allows internal HR teams to concentrate on core functions like employee development and retention, improving overall productivity.
3. Access to Talent and Technology: Recruitment agencies have access to a broader talent pool and advanced technology, leading to cost savings through better negotiation of recruitment-related services.
4. Scalability and Flexibility: RPO services are scalable based on hiring needs, reducing financial risk by paying only for necessary services when needed.
5. Operational Efficiency: Outsourcing reduces operational costs by minimizing investments in HR processes and recruitment technology, allowing more focus on core business activities.
6. Volume Hiring: Efficiently handling large-scale recruitment campaigns for organizations like hospital systems, leveraging economies of scale to minimize costs.
7. Quality of Hire: quality hires by expertly identifying candidates who not only meet skill requirements but also fit culturally, reducing turnover and associated costs.
8. Improved Candidate Experience: Enhances candidate experience, leading to higher acceptance rates of job offers. A positive experience encourages candidates to accept offers, reducing rehiring costs for unfilled positions.


While in-house full cycle recruitment provides staffing firms with direct control over the hiring process, it can also impose significant financial burdens due to resource allocation, technology costs, expertise development, and scalability challenges. Outsourcing full cycle recruitment to specialized service providers like QX Recruitment Services can offer staffing firms a cost-effective alternative, allowing them to focus on their core business objectives while leveraging external expertise and resources to meet their clients’ staffing needs efficiently. Want to learn more about our services? Contact us today!

Originally published Apr 22, 2024 12:04:05, updated Apr 22 2024

Topics: Full Cycle Recruiting, full recruiting life cycle, full-cycle recruitment process, Outsource Full Cycle Recruiting

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