Recruiting In-House vs. Outsourcing: Which Is Better?

One of oldest dilemma faced by recruiters is to hire in-house or outsource talent. Expertise, cost and flexibility are three major factors which affect this decision and eventually the recruitment strategies employed. Does the current in-house team have the necessary skills? What is your budget? Is the requirement temporary or permanent? Answers to such questions can help you streamline recruitment process to achieve the desired results.

The pros and cons of both hiring in-house vs. outsourcing are described below to help you make an informed decision. Let’s take a look:

Recruiting In-House

Pros

  • In-house hiring means that the person is able to engage and communicate better with other employees in person. Hence, work gets done better and faster. Brainstorming with all the concerned individuals in one place, can lead to creation of bigger ideas.
  • You can be assured of your intellectual property remaining confidential through non-compete contract. This can prevent the employees from taking any private information with them when they leave the company.
  • Work becomes more efficient with in-house hiring as the employees can direct all their efforts for solving a problem which needs to be fixed quickly. Freelancers on the other hand may work on projects based on a first come, first served method or as per their will.

Cons

  • The entire process of in-house hiring involves searching, interviewing, negotiating and onboarding. This can take up a lot of time, money and effort. If the employee leaves, the entire process needs to be repeated to fill in that particular vacancy.
  • You can simply pay a flat rate to a freelancer. However, in case of in-house recruitment, your top employees may expect certain benefits such as dental and medical and even a 401(k) plan match. All of these costs can add up to a substantially high amount.
  • It can become really difficult to find high quality talent, particularly in smaller cities. Most of the times, top performers are either already hired by other firms or they demand a fat increment.

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Outsourcing

Pros

  • There are plenty of sites which bring recruiters and freelancers together on a single platform such as Freelancer and Upwork. Hence, the process of finding and hiring freelancers to outsource work has become quick and efficient.
  • Outsourcing is an ideal option for short-term projects. Since the talent is only needed for a short duration and a one-off project, hiring in-house makes no sense.
  • You can use dollar arbitrage to benefit from the different prices across various markets when hiring freelancers from anywhere in the world.

Cons

  • One of the biggest cons of outsourcing is that your intellectual property is at a risk of being exposed. You can try to gain some insights about the talent with the help of sites like Facebook and LinkedIn.
  • Fake freelancer profiles which exaggerate talent are common. So check for reviews or ratings and verify the profiles in whichever way you can.
  • Freelancers sometimes also work in different time zones or have different schedules. Hence, communication gaps are bound to happen.
  • Outsourcing can be expensive sometimes. Highest rated freelancers can cost you hundreds of dollars per hour, based on the scope of the project.
  • Finding a talent exactly suitable for your requirements in your own area and country can sometimes become difficult. One of the issues with outsourcing is that the styles of content creation, design or engineering for instance, vary with locations. For instance, a US based writer has a different writing style as compared to a writer based in the UK.

You need to keep in mind that it isn’t always necessary to choose one of the two. Most of the businesses opt for a mixture of both-in-house hiring and outsourcing which works perfectly fine as well.

Kelly Barcelos

Kelly Barcelos
Kelly Barcelos is a digital marketing manager specializing in HR and is responsible for leading Jobsoid’s content and social media team.

Kelly Barcelos

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