Using an Outsourcing or Recruitment Firm: Which is Better for Your Business?

Angela McDonald • 26/03/2019

For businesses looking to expanding their staffing capabilities, if they do not have the internal resources to undertake the hiring themselves they generally have two options: engaging a recruitment firm or outsource.

While both take the time and resource-draining process of hiring off a businesses plate, one is generally a role by role basis, while the latter is a move towards implementing a resource that has the potential to create real, tangible results. Outsourcing is the latter.

 

When we speak to prospective clients that are investigating both options, we find that a common talking point is the price comparison between the two. Specifically, the perceived notion that Deployed’s prices are fairly high compared to recruitment firms. However, this simply isn’t the case.

If we delve into the pricing structures, you’ll generally find that you get a lot more value for money with Deployed. Our pricing structure is simple, we charge a flat monthly fee compared to charging a large percentage of the hired individuals annual salary plus additional costs. In Australia and New Zealand, it is common for that percentage to be around 15-20%%, of the annual salary of that individual.

An important point to note is that outsourcing to the Philippines grants you access to a talent pool of highly-skilled professionals at a cost of around 40% less than hiring locally. Which in some positions, such as a developer, graphic designer or someone in a leadership position that traditionally have large annual salaries, that 15-20% can be fairly large.

Plus, you also need to consider, that it is in the recruiters’ interest to find someone that has a higher salary, in order for them to generate a large commission.

Thus, if you chose to hire a senior developer in your local market through a recruiter, they could cost anywhere upwards of $100,000. When you take the recruitment firms fee plus add-ons, you are essentially paying $15,000 plus for that hire. And, that’s not taking into account the time spent training and onboarding your new hire.

However, when you compare this to Deployed’s completely transparent pricing structure and then factor in the ongoing benefits of outsourcing, it really is a no-brainer. The investment into building a remote team, far outweigh the costs.

 

Where recruitment firms, simply recruit a batch of potential candidates and then leave the rest up to you, Deployed go above and beyond. We not only use our extensive recruitment network to find the best talent available, but we are also an active part of the ongoing success of your business.

When you outsource with Deployed your team is housed in one of our four modern Manila offices, has access to quality IT and communication technology, we undertake all initial and ongoing back-of-house tasks and you have access to a dedicated account manager. Not many recruiting, or outsourcing firms can provide this.

And, our results speak for themselves. With a number of businesses throughout Australia and New Zealand, choosing to invest in the success of their business with outsourcing rather than a quick fix through a recruitment firm.

 

Another aspect of this comparison to consider is the varying levels of accountability that are held by each party. When you chose to outsource with a quality outsourcing provider, there is a high level of accountability for the candidates they present and their continued success. For us, we take pride in our quality over quantity approach. Where we ensure the candidates we present, meet your brief exactly and have the capabilities to execute the role to the fullest. We back this up, with our six-month probation period.

Whereas, for many recruitment firms, their mission is to present as many candidates as possible and hope a candidate sticks. However, if they are not what you desire or do not pan out, there is a small guarantee period. Which essentially communicates that once their job is done, it is done. And, if you want to restart your search, it will come with a whole new set of fees and charges.

Both avenues service the purpose of helping businesses satisfy their staffing needs. However, outsourcing, especially with Deployed, is clearly aimed at providing a solution that is going to help your business succeed and meet its goals. Whereas, recruitment is generally aimed at satisfying a need in a fairly short time frame.

 

Ultimately, both avenues are fairly sizeable financial commitments. However, depending on your business’ goals and mindset, outsourcing is clearly the better avenue for long-term success.

Deployed, is committed to helping Australian and New Zealand businesses create the sustainable, long-term success that sees them reach their goals. Not simple putting bums on seats and moving on.

If you are interested in finding out more about Deployed’s approach to outsourcing and helping your business, contact us today.