Benefits of Outsourcing Staffing Services

Recently, in the last few years, there has been a surge in layoffs, with companies citing the inability to find skilled candidates who can meet the requirements of the roles. Another reason supporting this claim is that the employees who were let go often failed to keep up with the latest tools and technologies.

As a result, a lot of businesses want to cut their overhead expenses while maintaining quality. So, they look for alternatives like outsourcing staffing services. 

Everyone is well aware that recruiting the best candidate who can exactly fit into the desired role from the business end is not a cakewalk. The next challenge that companies face after finding the right candidate is to retain them. 

Many studies revealed that it costs around between $4,000 and $20,000 to hire a new employee, not including salary and benefits. Additionally, in a recent survey by Harvard Business Review, research stated that 95% of businesses’ top priority is hiring and retaining candidates (survey based on 800 business leaders).

So, this guide is about what outsourcing staffing services are and the benefits of it. 

What is Staffing Outsourcing?

Outsourced staffing, or staff augmentation, is a process where businesses hire their skilled employees with a third-party service provider. 

These agencies manage the entire recruitment process, including candidate sourcing, interviewing, and testing for suitable roles. They also handle salary discussions and negotiations, ensuring a seamless hiring cycle. 

Depending on the demand of businesses and the type of work, the outsourced employees may work remotely or on-site. This model enables companies to scale their workforce.  

By leveraging the expertise of these agencies, companies can save time, reduce costs, and access a wider talent pool. This collaborative approach allows businesses to focus on their core operations while ensuring they attract and retain the best candidates for their needs. Overall, outsourced staffing enhances efficiency in workforce management.

Why are businesses thinking about hiring employees through outsourcing staffing solutions?

“According to the American Staffing Association, 49% of employed U.S. job seekers think AI tools are more biased than human ones when it comes to hiring.”

Moreover, beyond considering cost, outsourcing staffing fills so many business gaps. A few of the benefits of outstaffing are listed below. 

1. Staffing outsourcing lowers your hiring expenses

Outsourcing business staffing services allows businesses to delegate HR functions to experts, enhancing recruitment efficiency and effectiveness. 

This strategy will be more advantageous, particularly for startups and small and medium-sized enterprises, as it lowers the costs related to hiring full-time staff. 

Companies can also minimize training expenses and turnover rates by consolidating costs for interviewing, background checks, and skills testing into one manageable fee. 

Additionally, outsourcing staffing shortens the hiring time and reduces productivity losses from vacant positions while eliminating the fixed cost of maintaining an in-house recruitment team. In conclusion, this approach streamlines the process and alleviates administrative burdens during business hours. 

2. Get an opportunity to hire one of the best talent for your business

Outsourcing service providers are already backed by expertise and training. They already know exactly how to identify the most qualified applicants for the available positions. 

Outsourcing recruitment agencies use their knowledge of how to find the best candidates for companies. They know exactly what qualities to look for in a candidate so that they can be the best fit for the company they will work for.  

These recruitment staffing service providers are highly skilled at approaching candidates, persuading them to accept a job offer, and training them to fill the roles you need to fill. 

When you work with an outsourced recruitment agency, you can be sure that seasoned professionals in the field will assist you in locating and gaining access to top talent.

3. Your hiring process gets paced

The average hiring time worldwide has risen from 31 days in 2023 to 44 days in 2024. Depending on the industry, the shortest hiring time is found in the hospitality and cleaning services sectors (14 days). 

While energy and defense take the longest (67 days), executive positions require over 120 days to fill, whereas entry-level positions take around 30 days to fill the vacant position. 

The average cost per hire is $4,700, and the best candidates usually only remain available for ten days before accepting offers. 

However, 60% of job seekers give up on lengthy application processes as a result of this, and 76% of recruiters find it difficult to draw in qualified applicants. 

Following the AI boom, 27% of talent professionals are using GenAI for recruiting tasks, and 79% think AI has sped up the hiring process. However, many US Staffing Associations still maintain that human hiring is fair and that the best candidate is found for the desired role, which denies the AI role as dominant in hiring.

4. Your task accomplished rate increases and hiring rate decreases

It has been observed that during the initial stages of a business, you are occupied with numerous unrelated tasks, or perhaps more accurately, you are mixed up with tasks in which you lack expertise. 

Additionally, in this scenario, finding the right talent who has expertise in his domain and the mindset to promote your business from a growth perspective is a condition like sitting on the fence.

According to the resources, U.S. Chamber of Commerce American businesses are mostly impacted because of employee shortages.

However, this situation can be avoided if you have outsourced staffing from a partner like Invedus for the hiring of your resources. They have already selected pre-screened applicants with extensive knowledge of their field for you, and the best part is that you will be able to hire top talent without dismantling your estimated budget. 

5. Experience the scalability in your team and flexibility in your tasks. 

It happens often that we are not always loaded with the projects. Sometimes we have short-duration projects, and at that time we need an extra workforce. 

In this scenario, hiring a full-time team is not the wisest choice because you need to pay them higher salaries, additional benefits, leaves, bonuses, increments, and other financial subsidies. However, outsourcing staffing can play an important role, allowing you to pick the best candidate for your business. 

Outstaffing is responsible for completing the recruitment life cycle. Following a preliminary interview with the most qualified candidate based on your job specifications, the outsourcing recruitment agency will allow you, the client, to interview the selected candidate. After you (the client) have finished the selection process. 

Outsource staffing, discuss timing, follow up with the candidate, negotiate a salary, and make sure that their communication will not be a barrier in the future, and everything in between is managed by them. They work to resolve any problems that could potentially lead to conflict down the road.  

6. Outsourcing staffing will always keep you ahead of your competitors

It has been noted several times that our competitors outperform us due to their strong workforce and effective expense management. In contrast, as a newcomer in the market, you may find yourself overwhelmed by various tasks that distract you from your core objectives.

As a small or medium-sized enterprise (SME) or startup, you often face challenges such as limited funding, a lack of access to the latest tools and technologies, and difficulties in managing your team and coordinating with clients. 

This is where staffing outsourcing can be beneficial. It provides you with access to the latest tools and technologies, manages your team, coordinates client interactions, and handles various virtual assistant tasks. These tasks may include cold emailing, following up with clients, managing calendars, overseeing mailboxes, managing social media, and handling many other essential responsibilities that can be efficiently managed through outsourcing.

By leveraging staffing outsourcing, you can focus on your core objectives and enhance your overall performance.

7. Your bad hiring rate plunges

During the growth phase of a business, it’s common to seek cost reductions by hiring less experienced personnel without conducting thorough background checks. While this might seem like an economical choice, it can significantly undermine your business’s potential and ultimately prove to be an expensive mistake. 

Bad hiring decisions may have far-reaching consequences, as considerable resources are invested in new employees through training and onboarding. When a new hire turns out to be misaligned with the role, you not only face the challenges of restarting the process of recruitment but also incur additional costs and lose productivity in the interim. 

To mitigate these risks, consider partnering with a reputable staffing firm like Invedus that has a proven track record. These outsourced staffing companies specialize in connecting businesses with qualified candidates, taking the burden of recruitment off your shoulders

By leveraging their expertise and extensive networks, you can increase your chances of finding the right fit for your open positions, thereby enhancing your business efficiency and overall success. 

Investment in proper staffing solutions is a strategic move that can pay dividends as your business continues to grow. 

8. Your market reach will shoot up

The primary motive of any business is to access the largest audience base. If you try to do it by your end, you will lose your business insights and its core objective. Let these tasks be handled by your outsourcing staffing firm. 

They have a large talent pool, so you can choose any hiring model according to your business requirements. As well, these outstaffing service providers take the entire responsibility of taking your business to the next level. Whether it demands marketing, administration, or managing funds and resources, everything will go without a hitch. 

9. Outsourcing staffing will allow you to focus on core tasks 

As a businessman, you are not responsible for managing your employees (in the sense of hiring them and listening to their small grievances); if you try to do so, they will try to micromanage you, which is not your job. 

Outsourcing staffing, however, allows you to find fresh talent without being sidetracked by routine business tasks. As a manager or entrepreneur, your primary responsibility is to concentrate on developing strategies rather than hiring and overseeing staff. 

Let your chosen outsource recruitment business manage these tasks for you. 

10. Get the privilege of accessing the continuous talent pool

It happens very often when you have a project. You need a wider team, but if you hire an onsite team, then you need to offer them all the benefits according to your country’s laws and regulations. Secondly, you can not fire them just by saying we don’t have projects, so we don’t need you.

In this scenario, it is better to collaborate with the outsourced staffing solutions. They will provide you with a team or individual virtual assistants or virtual employees, whatever your project demands, and the best part is you don’t have to bother about your temporary hiring turning into permanent hiring, offering them all the benefits according to your country and all. The thing you only need to assign your virtual team is a task. The rest they will manage on their own.

Hire the Best Staff With Invedus

In the above section, we outlined clearly the benefits of outsourcing staffing services. It eases the task of selecting the candidate, which will ease the recruitment cycle. Many companies are using their services because they not only save money but also receive help with various aspects of hiring, such as background checks, skill evaluations, salary negotiations, confidence assessments, language proficiency tests, and emotion checks, all of which are necessary to support the open position and are expertly completed by Invedus.