7 Benefits of Professional Recruitment VS. Internal Hiring

Almost every month, an innovative technology develops in the field of recruitment. Some of them are quite useful for specific companies, and some can cause more harm. While some of them may not seem to provide benefits, they can be the best option for certain companies. Eventually, this is the mission of professional recruitment companies, they have the knowledge and the tools to keep up with evolving technologies, changes in laws, recruitment process strategies, and cutting-edge techniques. 

Manpower outsourcing companies are more like financial specialists; everyone can count, but only professionals can create a financial statement, maintain positive relations with related authorities, and notify company management when expenses are more than income. And as they say, ask an expert. 

How do recruitment companies work?

Recruitment companies have main missions, 

  • Helping companies determine the numbers, professions, and qualifications of workers and professionals needed.
  • Selecting and attracting skilled labor and talent from their home country.
  • Carrying out all procedures and documents for bringing in expatriate workers from their country.
  • Issuing residency permits, social insurance, medical insurance, and other regulatory procedures.
  • Qualifying employees and professionals to perform the required tasks.
  • Identify, implement, and integrate the required human resources management software with other company software.
  • Managing and paying salaries and bonuses, and applying penalties.
  • Ensure that workers are replaced if they are unfit for their jobs and carry out all procedures related to it.
  • Carrying out the end of the contract, and completing the return home procedures for each worker.

Each mission on this list requires specialization, dedication, knowledge, and continual updating, especially in medium-sized and large companies that need a significant number of workers and professionals.

But what are the advantages of partnering with a professional recruiting company over internal recruiting?

7 advantages of external recruitment professionals:

1- Professional external recruitment sources are experts in labor laws; keep tabs on government initiatives and updates, have existing and maintained relationships with authorities; and are notified of changes in labor laws before non-specialized companies. Professional recruitment companies also handle the relationship between their clients and legal labor bodies.

2- A comprehensive understanding of the state-of-the-art technologies used in recruitment, as well as how to select and utilize the most suitable technology for each business.

3- One of the benefits of external recruitment companies is their ability to reduce the labor turnover rate in companies, which exceeds 70% in the restaurant sector for example, and causes financial losses to increase. It’s estimated that it costs a company twice the salary of each resigned employee, as it bears the expenses of a vacant ad, the time cost of making interviews, and the time cost of the handover and the training processes.

4- Less financial burdens, in two ways:

  • Much less risk. Cooperating with a specialized recruitment company saves business owners the risk of paying the full cost of recruiting an incoming worker from his home country. This worker may or may not fit the job, so the employer might bear twice the cost of replacing him with another.
  • Better cash flow management. Cooperating with specialized recruitment companies enables business owners to keep their money for more than one financial cycle. Recruitment companies allow businesses to pay recruiting costs in installments. As the employer may place a down payment and then pay the remainder through a payment plan, while also taking advantage of net terms added to the invoice issue date. This helps business owners manage their cash flow better.

5- The specialization and experience recruitment companies possess. Having a partner who has experience and knowledge of dealing with workers is the best external recruitment advantage for a startup business. This is why SMASCO has launched Rowad. Rowad provides many solutions for startups and small companies, with a reasonable budget and a set of in point-advantages for startup businesses. To download the Rowad application, click here.

6- Early management of external risks. In a market such as the Saudi one, the risks of employing workers increase due to its dependence on incoming workers. The diversity of countries, cultures, backgrounds, and even legal documents required for hiring each worker, makes recruiting an enormous responsibility for non-specialized companies. The rapid transformation of the Saudi economy can affect both internal and external recruitment; though, it’s about how to act, react, and react. 

7- Professional recruiting companies handle the complete hiring process professionally. Starting with the filing of the necessary legal paperwork, selecting fit-for-job employees, and managing salaries until the end of the employment contract.

All are complicated operations that identify what external sources of recruitment are all about. 

These 7 are the most common operations that recruiting companies carry out and clear the difference between internal recruitment and external recruitment. All are complicated ones, requiring experience, knowledge, and specialization at the professional level as well as at the academic level. Those are all difficult operations for one department or one individual not specialized in recruitment. 

For this reason, many professional recruitment companies offer 2 forms of programs, standard, and customized.

Standard packages. Many labor recruitment companies allocate packages for each category of business; startup companies with a small need for labor and a limited budget, medium-sized businesses with specific requirements, and large companies with a large need for labor and high budgets.

In standard packages, labor recruitment companies perform a set of specific operations. For example, SMASCO offers Musandah Service, for the necessary solutions for recruiting covering the legal, health, and qualification standpoints.

  • Complete coverage of legal documents needed for the worker’s admission.
  • Medical insurance is provided by the biggest insurance companies.
  • Social insurance Registration.
  • Managing salary payments and the monthly depositing process.
  • The contract settlement process and the return-home ticket.
  • Securing your company’s situation in case a worker has escaped or refrained from work.
  • Replacement, in case the worker didn’t fit in.
  • Physical and mental checks on the workers.
  • Equipping the workers with the required training for their profession and their skills.

    Click here to get Musandah Service

Flexible packages. At SMASCO, we offer you distinct solutions that take into account the needs of your company. We guarantee you exceptional flexibility in every service, in order to meet your aspirations, objectives, and business needs. Whether your company is small, medium, or large-sized; we make sure that you get the maximum benefit out of every service you receive. Call us