Companies Turn Outward for Recruiting

Recruitment: Outsourcing of recruiting is taking hold. Since 2005, the percentage of companies turning over portions of their recruiting function to third-party contractors has more than doubled, jumping from 15.4 percent to nearly 34.5 percent, according to the Institute for Corporate Productivity. About 56.5 percent of companies outsource the hiring of executives, while nearly 44 percent use it to find experienced professional workers. Supervisory positions are the least-outsourced jobs at 14.5 percent. Despite widespread belief that outsourcing saves money by reducing headcount, the St. Petersburg, Florida-based institute (formerly known as the Human Resources Institute) notes that in most instances companies are employing more recruiters, not fewer, to be able to better manage their outsourcing initiatives.