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Top 5 reasons to consider HR outsourcing

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Marissa Mayer should be commended for the changes she has been able to implement at Yahoo since joining the company as CEO. But fixing the broken HR is not one of her successes. In one of her recent interviews, Marrisa was quoted as saying that the company is well on its way back to recovery since the company is getting "12,000 resumes per week"! I don't know about you, but I don't Wall Street considers number of job applicants as a direct indicator of revenue growth or financial health of the company for that matter.

But I was now curious to do more research about how broken was the HR function at Yahoo. So, I did some math. Using 12,000 resumes per week means that Yahoo receives 48,000 resume per month. Let’s assume that 90% of these resumes are from unqualified and mismatched candidates who are desperate for any job. That still leave Yahoo with more than 4,800 qualified candidate that Yahoo HR can follow up and hire.

In fact with that many qualified applicants Yahoo should not have any open position? This is because Resume Scanning is not the solution. Given the fact that 80% of applicants exaggerate their experience on their resume, companies gain very little by scanning resumes for keywords. In fact, it would be very simple to defeat the resume scanning if the applicants can copy the keywords from the posted job description and utilize it in the resume they want to submit to Yahoo

How about using a Recruitment Process Outsourcing (RPO) at Yahoo? After all, IT Outsourcing has proven that companies can successfully allocate the functions which is not their core competence to 3rd party companies. To get some more information about the outsourcing process, I asked the CEO of Recruiting Division Andrew Greenberg to educate me on how RPO could help a company's HR function.

According to Andrew, the benefits of RPO are:

1. Accountability : Think about your employees – they hold themselves accountable because they are being paid to do a job, and they know that if they don’t do a great job, there will be consequences – they will probably be out of a job. An RPO works on the same basic “pay for performance” principle, which ensures a high level of accountability.

2. Alignment : A traditional recruiting firm prioritizes their time and energy based upon how likely a position is to result in a placement fee. Their priorities are based upon their own self-interests and their own agenda; not yours. But as an RPO, your priorities become our priorities. We work with the same level of rigor on every position, no matter how easy or difficult it may be to fulfill. We are a completely aligned extension of your staff.

3. Quality: Recruiting companies that charge placement fees tend to maximize their chances of collecting a fee by emphasizing Quantity of resumes over Quality of resumes. Essentially, throwing enough resumes at the wall in the hope that something sticks, and then collecting a fee. As an RPO, though, we’re able to focus on Quality because we are fully aligned and partnered with you, as opposed to being an outsider competing with other firms for an elusive fee.

4. Speed: RPO’s deliver candidates faster than traditional recruiting models primarily because an RPO will put 100% of its resources into every job, every time, regardless of how difficult a position is to fill. That’s very different from a traditional recruiting firm that charges placement fees; that type of firm only puts its resources into easier jobs that they feel will result in a fee. In the recruiting world, we call this “cherry picking”.

5. Cost : RPO’s don’t charge placement fees. In the staffing industry, placement fees can by anywhere between 15 and 25 percent, and can be very damaging to corporate budgets. But RPO’s, like The Recruiting Division, have a very different price model, that’s both cost-effective, and gentle on budgets.

Let's hope Marrisa Mayer will have a chance to fix the broken HR at Yahoo before all those qualified applicants are hired by her former company Google.

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