Why Direct Hiring Is a Waste of Time

Yes, you read the title right. Direct hiring is a waste of time, and I’m here to tell you why.

No offense to those who are still direct hiring advocates, but how do you go through your day knowing that you’re wasting your precious time and money doing something that can easily be outsourced?

In-house hiring is so 90’s. Today, more and more companies are realizing that there’s a much better way to expand and manage their operations without spending too much time, money, effort, and resources.

In-house recruitment and operations

In-house refers to conducting your company’s hiring process and business operations on their own, instead of relying on outsourcing. By operating in-house, companies are utilizing their own employees’ talents to perform business activities, from front office to back office.

Advantages of in-house services

Some businesses that opt to keep their operations in-house think that it’s easier to manage an internal team and control all its processes. Working with all your employees and teams in one physical office gives a certain sense of camaraderie, and it makes it easier for new hires to have a deep, if not deeper, understanding of the company’s culture and how it works.

Leaving your recruitment and hiring process to an in-house team makes it much easier for upper management to foresee challenges and provide solutions. Since work happens within office premises, new guidelines and official disclosures will be more conveniently announced and implemented.

These all sound good, but in the next chapter, we’ll talk about why despite these advantages, direct hiring is a waste of time.

Why direct hiring is a waste of time

This goes without saying, but if you’re managing one of the businesses who are fortunately looking to expand its workforce during or post-pandemic, it’s best to make wiser and more informed decisions. Every choice you make may simply seem like a simple decision now, but as what we’re seeing in this climate, every simple decision you make today will play a huge part in your business’ survival in the long run.

It is truly tempting to just reshore or hire everything in-house, but here’s why you shouldn’t:

Direct hiring is a waste of time AND money

Direct hiring is like a very expensive investment. You’ll need to invest a lot of money in the recruitment process alone, from training materials to onboarding process. According to RecruiterBox, the total cost of hiring one employee could be as high as $ 5000 or more in the professional or manufacturing industry. Hiring a new employee in the services-related industry typically costs more than $ 1,000.

What happens when you come across a bad hire? Finding out that a new hire is not a good fit will add additional expenses for the company, like recruitment and training costs for the replacement. It definitely wouldn’t help the team’s morale as well.

Lesser expertise

We know that you wouldn’t build a recruiting team with people who are not knowledgeable and skilled in their respective fields. However, some recruitment team members may not have enough experience and expertise in certain areas and elements of the recruitment process.

Building an expert team of recruitment, payroll, recruitment, and operations professionals is way too expensive. Because of this, in-house teams tend to compromise and settle for people with experience but less expertise. Yes, they have basic knowledge about handling some elements of managing a team, but is it enough?

In-house hiring is so time-consuming

In-house hiring, training, and managing takes all the time we can’t afford to waste. How can your core team focus on your business’ growth and development if their time is being used on training and handling your in-house hires?

They say that time is gold, and in this economic climate, no one is really in the position to lose gold.

Outsourcing: The better option

Another – and better – way of expanding your team is outsourcing. Outsourcing is the process of leasing skilled resources from third-party providers. Outsourcing can be done either offshore or onshore.

Offshore outsourcing is the process of outsourcing or getting your operations done from a far-off country like the Philippines, the world’s leading outsourcing destination. Onshore outsourcing, on the other hand, is the practice of outsourcing business functions to a company in the same country where the business operates.

There are a lot of misconceptions about the world of outsourcing, but these fallacies have already been debunked. Here are some of the reasons why we think outsourcing is the better option for businesses looking to expand their business operations:

Cost-efficiency paired with scalable solutions

Large corporations to small businesses outsource in the Philippines due to its cost-efficiency and scalability. Through outsourcing, companies can save up to 70% on employment costs. Companies can save so much, without having to be personally responsible for employees’ benefits, insurances, office spaces, and other work-related needs. These concerns will be delegated to their chosen Business Process Outsourcing (BPO) company.

Outsourcing providers offer a variety of packages and solutions to meet every client’s needs. They also give businesses means to maximize the use of their external resources, cutting other expenses, such as shipping and materials costs. Further, the size of your business doesn’t really matter when you’re outsourcing, BPO firms will try to create the perfect plan or package for you.

Wide range of services and world-class expertise

In the Philippines alone, outsourcing providers can offer knowledgeable and skilled professionals with expertise in the following areas:

  • Customer and chat support
  • Data entry
  • Social media management
  • Graphic design
  • Virtual assistance
  • Information technology
  • Recruitment and HR

Direct hiring can grant you access to a wide pool of experts, however, it comes with a hefty employment cost. Outsourcing can provide talents with the same, if not higher, levels of expertise at a relatively cheaper price. The industry is just waiting for you to take your dip to the outsourcing pool.

Focus on core responsibilities

Having your core team hands-on and fully responsible in managing your back end employees and recruitment team takes a lot from their time and day. Managing your company’s back end operations can get overwhelming, time-consuming, and never-ending, it’s much better to delegate these tasks to those who have years of experience doing it.

By letting an outsourcing provider manage your team, your core team can focus on the core competencies of your business. By letting them get focused on their main tasks, your business is in a quicker way to growth and development. By giving your core team enough time for their main responsibilities, you’ll be rewarded with high-quality and unrushed output and services.

Final thoughts

We pick our battles in managing and expanding the business. There are non-negotiables, and there are things worth trying. Do not let your precious time and money get wasted by in-house hiring, when there’s a completely better way of doing things on the other side of the world.

The majority of Western companies have outsourced. It’s time for you to join the club.

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Author: Derek Gallimore

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