Why Outsourcing Your Hiring Will Substantially Save You Time & Money


While it may seem like a no-brainer to take care of hiring internally, many companies find that this can cost them more money, take longer, and may result in lower-quality candidates. This isn’t a new challenge for businesses. But it’s even more difficult now due to a smaller staff, leaner organizations, and a historical candidate shortage.

When it comes to money and time, loss of cash flow can have an immense impact on your business. One way to reduce costs while keeping your business productive is outsourcing hiring. An effective staffing partner will decrease time and financial expenditures while bringing in quality employees.  

The 3 risks of managing hiring in-house

Increased turnover

While it may seem easier and more cost-effective to handle hiring internally, studies show this may result in lower-quality candidates and hires who are not the right fit for the role. A single bad hire can impact team morale and ultimately increase employee turnover. One study found that the average cost to replace just one employee can have a huge financial impact on your business: 

  • $1,500 for hourly employees
  • 100% – 150% of an employee’s salary for technical positions
  • Up to 213% of an employee’s salary for C-suite positions

Loss in productivity

When companies handle hiring internally, the responsibility often falls on a current employee — all while continuing to do their “day job”. Inevitably, this requires a significant investment of their time, as broken down below:

  • Choosing where to spend money to post the position. There are several sites candidates use to job hunt. Which ones are best? It takes time to do the research and decide which sites make the most sense for your role(s). Time: 3-4 hours
  • Posting the job. From crafting the job description to going through the steps to post it, it’s not as simple as one click of a button. Time: 1 hour
  • Applicant review. The employee will be weeding through hundreds of applicants and resumes in hopes of finding a needle in the haystack. And while posting the job to various online boards may garner several hundred applicants, it still doesn’t guarantee finding the perfect match. In fact, in today’s job market, the “spray and pray” method is just one tool in the recruitment arsenal, not the only tool. Time: 20 hours (based on 300 connections)
  • Interviewing. Scheduling and conducting interviews, reference checks, and required pre-screenings. Time: 20 hours

    Total time: 45 hours

Significant financial investment

The cost of a new hire does not stop with getting them interviewed, onboarded, and paid. You’re adding another person to your payroll and benefits. Not to mention the exposure to worker’s compensation and any unemployment costs. 

True cost savings when partnering with a staffing agency

workers discussing cost savings in front of laptop showing positive trend graphs

By passing the hiring off to a trusted partner, you could then focus valuable time on efficiently operating your business.

Access to both passive and active candidate pool
Think of everything you have to do to hire candidates, there’s a long checklist that needs to be completed in a short amount of time before you can even get the hire you need working. 

Staffing agencies have a pool of qualified workers that they can tap into, saving you time and effort in the long run. They deal with the time-suck of weeding through candidates, screening, interviewing, and preparing candidates for the position all while you are focusing on your core business. Often, they will fill your vacant positions faster than you expect. Staffing partners also have the technology and expertise to guide you through hiring, even with restrictions on face-to-face meetings.

Reduce training costs
Every time you make a new hire, there is a certain learning curve or training that has to take place for this person to perform their everyday duties. Hiring through a staffing firm will most likely eliminate/reduce your training costs because these teams pre-qualify candidates to find those with the expertise you need to perform the job.

Improved workforce flexibility
When companies like yours choose to outsource staffing, they are hiring contracted/project workers, which allows you to increase and decrease staff depending on the workload without long-term financial commitment. This will allow you to run an efficient business as demand for services changes day by day.

“Try before you buy” a candidate before you commit
A great added benefit of working with a staffing agency is that you can employ temp and temp-to-hire workers. You can see how they fit and make sure they are the correct match for your business before you bring them on full-time. If for some reason they don’t work out, you can ask your staffing partner to end the assignment. You are not responsible for unemployment or the necessary paperwork to let someone go.  

Lower overhead costs
Staffing agencies can offer significant financial savings when it comes to employer costs you would normally provide to your employees. Health benefits, 401k, sick days, PTO, workers compensation, unemployment, and all employer taxes are the responsibility of your staffing partner. 

The Takeaway

Time. Money. Turnover. Productivity. When it comes to handling hiring internally, there are many more hidden costs than simply posting the job and the employee’s salary. Shift the time, costs, responsibility, and headaches of hiring to our staffing and recruiting experts. 

When you trust Alliance Industrial with hiring, you can be confident that we will find the talent that is the right match for your business. Staffing and recruitment is our specialty, so you can focus on your business specialty. 

Let’s schedule a meeting to discuss how a partnership can help you achieve your business goals while saving valuable time and money.

contact AIS and let the staffing experts handle your hiring

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Hire a fully charged workforce!

We’ll provide the right temp, temp-to-hire, or direct-hire candidates that align with your company quickly and efficiently.

Hire a fully charged workforce!

We’ll provide the right temp, temp-to-hire, or direct-hire candidates that align with your company quickly and efficiently.