Process Outsourcing Versus Automated Hiring

Process Outsourcing Versus Automated Hiring

Automation can take over the task of recruitment, but it is highly prone to errors. An effective solution is therefore to partner with an RPO, which can not only automate the talent acquisition process, but also infuse the human element in the process.


The biggest problem confronting organisations in India as far as recruitment is concerned is not the sourcing of potential candidates, but in fact, finding the right talent fit. Organisations, therefore, have resorted to the specialist entities that cater effective Recruitment Process Outsourcing (RPO) solutions. The main advantages of hiring such an agency are: -


● Reduced time spent on talent acquisition by up to 40%


● Increased cost savings that organisations spend on bringing right people on board


● High quality of recruitment


● Higher brand equity through better candidate engagement


And today, RPO is an impressive business in India that churns out an annual turnover of Rs. 400 Crore. For a service vertical which in India is still in its infancy, this is a reflection of the tremendous potential that the business represents. However, many organisations have not yet settled to the viability of partnering with an RPO service provider as they seek more than just the basic features in the recruitment machinery. With recruitment, Application Tracking Systems (ATS), AI based assessment tools, and a well defined recruitment process, one can get a feeling of having absolute control over talent acquisition. Things, however, are different than they appear.


Is recruitment an organisational core competency?


An organisation cannot grow, or possess a competitive advantage over its competitors without an efficient human capital. However, is recruitment the core competency of an organisation? Research indicates that HR managers spend around 40% of their time screening potential candidates manually, and updating records in the ATS. Being a monotonous task, this leaves little or mostly unproductive time for the manager to perform other tasks. An organisation is wasting precious time, resource and energy on a task that can be effectively managed by an external expert.


More successful organisations have their business and the HR head sitting at the same table to achieve a common goal - higher bottom lines. And, this is impossible to achieve if HR is bound by tight budgets and time constraints. Process automation can reduce the costs of talent acquisition. However, it has its own set of problems.


Need for constant monitoring


Automating recruitment process sounds enticing at the outset. It, however, does not mean that once the system is set, all the HR manager needs to do is wait for the right candidate to appear at the doorsteps for onboarding. During recruitment, automated systems, assessments and so on need constant monitoring, timely resolution, and data inputs so that the whole system can evolve. It means HR personnel also need to be upskilled to work with the automation and tools that are available today. The time and cost thus spent would be the same that HR spends in manually screening, interviewing and onboarding the candidates. This is where a technologically empowered and right human touch based RPO makes the difference.


An RPO is fully equipped with right kind of resources - right from experts to technology - who can take off the burden of recruitment from HR. The personnel department can focus on more productive tasks like monitoring employee performance, enhancing employee engagement, and creating conducive policies for the organisation's human capital.


The way forward


As mentioned previously, the market is flush with potential candidates. The trick lies in cherry picking the right candidates with utmost efficiency. In today's age that is dominated by Gen Y and Millennials, optimum use of automated tools and the deployment of the right practices is important. Automation can take over the task of recruitment, but it is highly prone to errors. An effective solution is therefore to partner with an RPO, which can not only automate talent acquisition, but also infuse the human element in the process.


Vinod Subramanian is the Chief Operations Officer at FlexAbility. He has been associated with the company for over ten years. Prior to this, he was working with ABC Consultants. A true veteran in the RPO industry, he carries an in depth knowledge over the ways in which the RPO market is shaping up in India and the real challenges that confronts the industry.


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