Deciding When – And When Not – To Outsource Applicant Tracking and Recruiting Functions
Many HR departments struggle with the question: When does it make sense to outsource? While the ideal might be to keep recruiting functions in the safety of the corporation’s processes, there are times when it makes sense to entrust internet-based HR recruiting processes to outside sources. Medzilla asks the experts why and when they outsource key recruiting processes, and what criteria they use in making the decision to outsource.
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Deciding When – And When
Not – To Outsource Applicant Tracking and Recruiting
Functions
Marysville, WA (prweb) October 24, 2003 – Many human resources
managers struggle with whether it makes sense to outsource key Internet-based
recruiting functions. While there’s no absolute answer, experts say managers
should employ a “healthy skepticism” to ensure efficiency and
confidentiality.
Keeping proprietary information in-house, such as that
gathered by an applicant tracking system, is the ideal, says Frank Heasley, PhD,
president and chief executive officer of MedZilla.com, a leading Internet
recruitment and professional community that targets job seekers and HR
professionals in biotechnology, pharmaceuticals, health care and
science.
“It is important to be careful with your company's business
information. Trusting outside sources can lead to problems,” Dr. Heasley says.
“We’ve found that outsourced solutions often fall short of their sales pitches
and most successful businesses have the corporate philosophy that it is better
to own their processes. There are times, however, when it makes sense to
outsource. When you're recruiting, for example, it makes sense to publish your
job requirements and use media outlets where you can reach more candidates that
are qualified. That means using job boards, because your corporate web site will
not nearly have the same candidate traffic level as a good job board in your
niche.”
On the other hand, an ATS is like one of your production
processes, Heasley says. It is a processing system that deals with your
company's proprietary information – your candidates, their private resumes and
information, and ultimately your company’s employees.
Dr. Heasley’s
point of view can be characterized as “healthy skepticism,” says Fred P. Lange,
president of HR Architect, an HR solutions consulting firm. According to Lange,
who has more than 20 years industry experience, “If it's your expertise … then
I’d say yes, keep it in-house. But if it’s not, I’m much more a proponent of
outsourcing.”
Lange says that a high level of due diligence is necessary
when considering any service provider. And while in-house ATS processes might be
safe, they might not be as up-to-date as outsourced options.
Susan
Taylor, vice president human resources, at Miami, Fla.-based Kos
Pharmaceuticals, says Kos uses its own applicant tracking software through a
fully integrated in-house HR system.
“The advantage of having that kind
of system is that you can also go into a quasi kind of outsourcing, which is
what we call a ‘shared services model,’” she explains. “That’s where we share
the job functions between in-house and outsourced firms . . . and that is
something that we’re actually looking at for the future to supplement our
in-house recruiting staff.”
Taylor looks at integrating outsourced
services as a synergized process to leverage the resources that an outsourcing
company can provide. As a result, Kos – a specialty pharmaceutical company
engaged in developing, manufacturing and marketing proprietary prescription
products for the treatment of chronic diseases – can focus its in-house
resources on its core competencies and to drive its business goals.
“Of
course there are all kinds of confidentiality statements and disclaimers and
things of this nature that go into the contracts that are involved with an
applicant tracking system that is outsourced,” she says. “So it obviously makes
sense to know your vendor and to make sure that it’s a vendor that you trust
with that information and that is reliable in providing that resource.”
On the other hand, Lange says that whether or not to outsource is not so
much a question when it comes to using job boards. Rather than an “either-or”
question, he believes companies should post positions on both their corporate
web sites (since people check specific companies for openings) and on job boards
to access tens of thousands of additional candidates.
Taylor agrees and
says Kos uses job boards as just one of the mechanisms to attract candidates. As
a business seeking the best candidates, she says, Kos wants to reach the widest
possible audience, and job boards play a key role.
To make sense,
outsourced Internet-based HR recruiting functions have to meet certain criteria,
Dr. Heasley says. “Your company needs to have easy access to your information,
you need to be confident that your information is secure, and that your provider
is both reliable and credible,” he notes. “In making the decision of whether or
not to outsource your ATS function, you need to consider both the risks and the
costs. You need to ask: Do the benefits outweigh the risks to your
organization's information?”
About MedZilla.com
Established
in mid 1994, MedZilla is the original web site to serve career and hiring needs
for professionals and employers in biotechnology, pharmaceuticals, medicine,
science and healthcare. MedZilla databases contain about 10,000 open positions,
13,000 resumes from candidates actively seeking new positions and 50,000
archived resumes.
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