Gauteng Business News

Send  Share  RSS  Twitter  29 Jan 2009

IT and Telecoms: Outsourced Recruitment Provides Cost Effective Solutions


Recent Gauteng Business News

Arnold Graaff CEO of Compuways explains how a well designed recruitment outsource model can cut recruitment costs in half

Compuways a leading IT recruitment company has found that outsourcing recruitment needs often produces better results than if recruitment is left to in-house devices.

“We often hear the argument that high placement fees force companies to turn to in-house recruitment,” says Arnold Graaff CEO of Compuways. “However after choosing in-house recruitment, many companies realise they cannot produce the same positive results and simply do not the have the capability that a recruitment specialist can provide.”

In Compuways’ recruitment experience, the process of outsourcing recruitment does not need to be a sour or expensive endeavour. “If an independent recruitment company and its clients work closely together, the results can be fast, efficient and cost effective,” adds Graaff.

Recruitment companies that recruit within a specialised skills industry such as IT are usually approached by job seekers because of appealing aspects like independence, brand name, professionalism, reputation, advice and marketing of skills. In-house recruiters often fall short of expectations because they become bogged down with internal HR policies and procedures, and cannot operate under the same independence of an outsource recruitment company.

The Combination

A combination of an in-house and independent recruitment approach has presented itself as the solution to finding skilled staff in tougher economic times. “We endeavour to promote a new way of working with our clients that will not only cut their recruitment costs dramatically, but also produce higher quality candidates,” says Graaff.

Professional recruitment companies such as Compuways look at an organisation’s historical appointments to identify trends and isolate demands for certain skills. “Calculating your average spend on placement fees, we can work out a model which will suit our clients and save them money,” explains Graaff.

Compuways bases its model on a retainer where the client pays a monthly fee for a fixed term, for example 12 months. Every placement during the specified period is then discounted at a highly reduced rate, which can result in a saving of up to 50 % over the term.

“An outside client who does not work on a retainer basis might pay a 17.5% placement fee, but with our system, a client who has a retainer agreement with us, will only pay 5% for the same placement,” says Graaff.

The retainer can also be varied so that companies with a big staff turnover as well as companies with a small staff turnover can benefit. The model is flexible because it does not necessarily expect a client to outsource all their placements to Compuways, and can be varied to take a representative sub-set of their placements only.


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