The purpose of the study was to identify factors benefitting organizations, by outsourcing their recruitment and selection process. The research was conducted by analyzing ten banks individually, including local and multinational. The idea was to focus on the banking sector and aspects that lead to benefits of outsourcing. Literature survey provided these aspects, which included lack of internal staff, cost savings, pool and aptitude of applicants, time pressure, manpower availability, better quality and replacement convenience. The study is based on the aforementioned factors, for which a questionnaire was designed.
Responses to questionnaire resulted mixed answers. 43% of the respondents, agreed upon higher retention ratio. Outsourcing firms have an edge, due to pools of applicants, abilities and expertise, upon which 29% strongly agreed and 29% strongly disagreed. 57% agreed that due to quality and competence, outsourcing firms have an edge. 86% agreed upon replacement convenience. 43% agreed on better quality, whereas 14% agreed on lack of internal staff potential. The highest ratio considered replacement convenience, the biggest cause of outsourcing recruitment and selection process.
The paper presents that 86% respondents believe in distant relationship with employees, as it provides employers the ease of firing and replacing. As a matter of fact, this aspect is very much true, because outsourced relationship between an employee and employer saves employer from the usual stuff of relocating, family and etc. No personal feelings hinder, at the time of firing. Because, distance limits the bond to develop further. Employers can easily set free non-performing employees at once.
The author concludes that bank managers positively take the outsourcing option, as it gives them the liberty to balance bank's resources and competencies. Also, it helps them to improve bank's operational flexibility and essential activities. Today, this study justifies the advantage of outsourcing recruitment and selection process in banking sector. The key factor is easy replacement at present. Rest are of strategic type, which are not so significant today.
The author also concluded that money and time is saved, because the need of training and developing is minimized, by outsourcing. However, cost is increased by outsourcing training and development. Also, it consumes more time, might produce adverse results and when the employee returns to the office after training, he/she might get loads of work.
The work could be applied to Recruitment and Selection. Banking is a service sector; likewise the service providers can opt for outsourcing recruitment and selection, so that they can better focus on their core businesses. Choosing a recruitment and selection firm, will provide the organizations expert services and place the best fit candidate for the open position. They carefully recruit and select candidates, by total quality recruitment, zero defects recruitment and right first time recruitment.
Exceptional staffing challenges are globally faced by the governments. Governments have pressures from the economic, social and organizational sides, which are constraints for them to utilize their proficiencies and attract talent for public service. Different types of recruitment and selection practices have ...