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Why Knowing the Difference Matters

Updated: Mar 13, 2022

Talent Acquisition- Recruiting- Staffing- Sourcing

Hiring third-party services to help your staffing needs can be confusing and daunting for many businesses. The following is an overview of four popular services.

Before deciding which hiring strategy will provide you the greatest ROI, It's essential to understand the differences and how to use them effectively.

Today we will review; Staffing Companies, Recruiting Outsourcing (RPO), Talent Acquisition or Staffing Consultants and Sourcing Professionals.

Knowing what each service entails will help ensure your business make an informed decision about which approach works best for meeting your current and future needs.

Below are the Pro's and Con's of the most common services.

Staffing Companies

Focused on filling your open job as quickly as possible

Staffing Companies are in abundance and specialize in most every industry under the sun. No matter the industry, they all share a single trait. That being, the overwhelming focus on filling your immediate hiring need. In fact, your typical staffing agency is not searching for the best person for your open position, rather their goal is to fill it as quickly and efficiently as possible. (a solution to this below)

The reasons make sense, Staffing Companies directly hire each worker. Having already invested the time and money, its critical to get this person onto a shift....Somewhere! Only when working "billable hours" will the agency see any financial return. Also, the longer the position is open, the more likely it will be filled by yourself or a competitor.

The Staffing Companies drive to quickly fill openings are rewarding for businesses who;

· Need to hire multiple people quickly

· Have Temporary or Project work ranging from days to weeks

· Have lower skilled openings or positions needing little training

· Need an extra hand until more permanent hire(s) are found

· Need a High Volume of workers whose skills will be determined while"on the job."

It's up to you, the customer, how you chose to use the staffing company. They are happy to provide recruiting services and place workers only when a“good fit." But you must decide

if you want the quickest fill or the most qualified.

Staffing truly shines when filling high volume openings

One place Staffing Companies truly shine is with Distribution and Manufacturing centers. Due to strict output requirements (units per hour), these positions have a high early attrition rate. So, if your business turns over 30% of new employees in the first six weeks, having a company to reliably refill those openings is amazing. Lastly, because the Staffing company is responsible for FICA, FUDA, SUDA & Workers comp Taxes/Fees your employee turnover process is nonexistent.

Recruitment Process Outsourcing (RPO)

Strong Partnerships for Scaleable Recruiting Needs

Recruitment Process Outsourcing (RPO) outsources all or part of the recruiting process. The most efficient way to achieve positive results is by bundling the entire recruiting process from start to finish in the agreement. This means your team is notified only when a strong candidate is ready for your final interview process. A interview will be scheduled for you, and you will inform the recruiter with a Yes or No. Thats it! You'll next meet the new hire after all the paperwork is complete and they are ready to start.

"Recruiting is the act of building trust"

A recruiter's job is of critical importance, and not to merely identify, attract, and interview potential employees. If this were the case, you could successfully automate and or divide these tasks among several departments. Recruiting is the act of building trust with potential recruits and the Recruiter is where your Companies culture is first revealed.

Hiring an outsourced recruiting firm dedicated to your success, ensures a great partner from start to finish. They'll take a deep dive into how best to tackle your job openings and what is considered a successful hire. This requires knowing everything about the client's industry, culture, workplace history and vision.

An added benefit of the RPO is your access to the robust software recruiting companies use. Full transparency into advertising and pipeline metrics offers a cost-effective way of hiring the best talent without having any upfront capital or commitment. Plus, with an evolving database of qualified applicants, you're able to capitalize as business needs shift.

Talent Acquisition Consulting

When you're ready for unbiased and sometimes harsh feedback

"Recruiting only requires a computer, a phone and a pulse" - name withheld

Talent Acquisition consulting services provide you a seasoned expert willing to answers questions and speak freely about what they discover. Many growth plans were devised by a well meaning business owners who believed the adage "Recruiting only requires a computer, a phone and a pulse." Dispelling this belief is step #1.

The consultant will clearly communicate with examples the processes that have worked, are working, and how methods are constantly evolving. In addition, they are well versed on the benefits and application of new technologies. Conveying the message what worked 18 months ago is not guaranteed to work today.

No matter the industry, you will find these consultants ready and willing to help map a strategy for you to attract top candidates, while developing a positive candidate experience. They'll also look into your organizations growth plan, revealing any gaps when addressing future trends and strategies.

However, if needing to fill open positions immediately, a Talent/ Growth or Staffing Consultant should not be your first call. Most consultants place their focus on long-term success and the overall hiring strategy.

If your recruitment process feels broken, you are experiencing challenges hiring, or just need to catch up on the new processes and technology being used. Finding a Talent Acquisition Consultant may be the right decision for your business.


Why the big companies rely on it

"The sourcing professional is an engine of growth while driving talent to the organization."

Sourcing is the act of searching for qualified prospects, identifying the right fit, and matching skills for upcoming positions. It focuses on detailed candidate searches within a specific industry/field of expertise, and building a presumptive pipeline.

When a company needs to fill open positions, they will typically go through various steps to find their desired candidate. One of these methods is having the sourcers prefilled pipeline supplement the recruiting team. The team will "headhunt" from the pipeline while awaiting external applicants to apply. Generally found in large organizations, the sourcers pipeline can be viewed almost as a recruiters lead list.

Maintaining a healthy pipeline of qualified people is advantageous to preforming a candidate search only when an opening arises.For this reason most recruiters have a sub function of building the pipeline when not actively recruiting. This process is helpful but can not compare with a full-time sourcer.

So, what's the best recruiting program for you?

I look forward to addressing other staffing solutions in future articles and hope you've enjoyed the overview of these readily available options.

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