Many business owners are well aware that it’s possible to outsource their human resource needs, including vital areas like recruitment outsourcing and several others. Many don’t realize that there are a few sub-categories of outsourced professionals here, and two that are often worth comparing are traditional HR companies and PEOs (Professional Employer Organizations).
At WTA Inc., we’re proud to serve as a top PEO service provider around Salt Lake City, offering a variety of recruiting support and other HR services to various clients. Here are some of the chief differences between traditional HR outsourcing and PEO services when it comes to recruitment and related areas, ensuring you understand your options and some of the advantages that often come with utilizing PEO solutions.
PEOs Support More Than Just Recruitment
With many traditional HR agencies, the hiring process is segmented into different sections – and your outsourced agency doesn’t always cover each of them. For instance, many such entities only assist clients with the recruitment part of this process, but do not provide additional support beyond that.
On the other hand, Professional Employer Organizations (PEOs) typically offer a full suite of HR services, including not just recruitment, but also onboarding, retention, and other key elements of the hiring process. This allows for a more comprehensive and seamless approach to hiring, as the PEOs are able to handle all aspects of the process from start to finish.
PEOs also offer a significant advantage in terms of expertise and resources. As these organizations specialize in providing HR services, they often have dedicated teams with extensive knowledge and experience in recruitment and other areas of HR. They also have access to advanced technology and tools that can streamline the hiring process, making it faster and more efficient.
Common Hiring Pitfalls PEOs Help Avoid
Here are a few of the most common pitfalls companies run into during their recruitment and hiring processes, plus how outsourcing to PEOs helps avoid them:
- Vague job descriptions: One of the most common mistakes when hiring is posting a vague or generic job description. This can result in attracting candidates who are not a good fit for the role, leading to wasted time and resources during the interview process. PEOs have experience crafting detailed and accurate job descriptions that attract top talent.
- Inadequate candidate screening: Without proper screening, companies may end up hiring unsuitable candidates who do not have the necessary skills or qualifications for the job. This can lead to high turnover rates and costly training expenses. PEOs use effective screening methods to ensure that only the most qualified candidates are considered.
- Legal compliance issues: The recruitment process is governed by various laws and regulations that can be complex and constantly changing. It can be challenging for companies to stay updated and compliant with these laws while also focusing on their core business operations. PEOs have dedicated HR experts who are well-versed in employment laws and regulations, ensuring that all aspects of the recruitment process are handled legally.
- Rushed decisions: In-house recruitment teams may feel pressured to quickly fill a position, leading to rushed hiring decisions. This can result in hiring the wrong candidate and ultimately costing the company valuable time and resources. PEOs have experience in conducting thorough candidate screenings and background checks, ensuring that only the most qualified candidates are considered.
Other Benefits of Outsourcing Recruiting and Hiring With PEOs
Here are several other benefits of outsourcing recruitment and hiring needs to PEOs:
- Structured hiring pipelines: PEOs have established processes in place for screening, interviewing, and selecting candidates. This helps ensure that the hiring process is efficient and effective.
- Onboarding support: Once a candidate has been selected, PEOs can provide assistance with onboarding and training, helping new employees get up to speed quickly.
- Background checks: PEOs often have access to resources for conducting background checks on potential hires, which can help mitigate risk and ensure the safety of the workplace.
- Compliance expertise: PEOs are well-versed in employment laws and regulations, and can provide guidance and support to ensure that a company’s hiring practices are compliant with these laws.
- Job market insights: PEOs may have access to data and insights about the job market, including salary information and hiring trends. This can be valuable for companies looking to attract top talent and stay competitive.
- Scalability benefits: As a company grows, its HR needs also grow. PEOs are equipped to handle the additional workload and can help companies scale their HR operations without having to invest in hiring more staff.
At WTA Inc., we’re proud to offer the best recruiting support solutions available to clients around SLC. Contact us today to learn about any of our recruitment outsourcing or related HR services!