HR outsourcing involves hiring an external HR professional or firm to handle staffing needs. Employment agencies provide HR outsourcing services, including temporary and executive recruitment. They can also help clients hire temporary staff on a short-term basis and offer the option to hire them as permanent staff members.
HR outsourcing is the business practice of procuring an external HR professional or firm to handle an organization’s staffing needs. Some of these needs may include recruiting, screening, hiring and sometimes training new staff for the organization. An organization may consider human resources outsourcing if it lacks a human resources department or a qualified human resources professional to adequately recruit the best possible employees. Organizations that attempt to hire new staff without understanding effective screening and hiring practices risk increased employee turnover and the loss of resources being used to hire and train the wrong people for the job. The companies that HR outsourcing organizations target are sometimes referred to as employment agencies, temping agencies, or headhunters.
Employment agencies typically employ a number of their own professionals to facilitate HR outsourcing, including a receptionist to greet and prescreen incoming candidates, an account manager to liaise with clients, and place job postings for them, and the vendors to land accounts with customers and manage billing. Some employment agencies specialize in placing temporary agents who are hired on a short-term basis to fill positions left by staff members on temporary leave of absence such as holidays, maternity leave or sick leave.
In these cases, the “temps” are direct and paid employees of the employment agency rather than the organization for which they work temporarily. If temporary workers need to call in sick or have a problem with their workplace, they contact the employment agency instead of their workplace. If a client of the employment agency is satisfied with the temp provided, you can “broker” with the agency to hire the employee as a permanent staff member once his contract with the agency has expired.
Employment agencies that specialize in executive recruitment typically handle clients who are looking for a permanent rather than a temporary staff member. They will often pay more attention to actively sourcing (headhunting) executives to meet the needs of their clients, rather than the more passive practice of turning to a resume database to fill temporary positions. An executive interested in finding a job with a new organization can contact an executive employment agency confidentially to see if they are a good match for one of the agency’s clients and vice versa.
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