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When recruiters should choose to outsource

Published 12th September 2014

For some recruiters, the effort and cost of outsourcing often seems much larger than it actually is. This is often due to a lack of awareness in both how easy it is to engage a specialised company in the tasks required, and how much is eases internal administration workload.

Many contractor management functions considered to be draining to an agency’s productivity and costs include expense processing, timesheet management and payroll, insurance and superannuation assurance, as well as maintenance of management systems and software.

Some tips for recruiters to tell if outsourcing these back office functions would be useful:

  • The agency is spending time and money training internal staff on areas outside their immediate expertise or capabilities
  • Staff are finding it challenging to pull comprehensive reports on costs and engagement of all contractors
  • The agency is undergoing, or has recently undergone, rapid growth or reduction in size.
Introducing in house technology vs outsourcing contractor management
To effectively manage contractors, it is necessary to have an effective management system in place to ensure consistency across all contractors, reporting and cost functions, as well as ensuring compliance.

In choosing whether to introduce in house technology to manage these contractors or to outsource contractor management, it is important to first understand if the company is capable of adequately and efficiently implementing a new technology into the business functions.

Implementing these solutions in house requires a dedicated staff member to spend time becoming acquainted with all the functions to be able to teach and guide other staff in using it effectively. This is often a pricey option that can be very disruptive to the day-to-day workflow and productivity.

Outsourcing these back office functions to a service that utilises its own established technology and software is a much more time efficient option. The service is its own technology champion, already knowing the inner workings and best ways to get things done. With the functionality of continually upgrading and improving the software, this negates the need for anyone internal to the company to fill that role on top of their existing role.

When you outsource services through Oncore, you only pay for the outsource system when you have contractors billing in the market and making you money. You are not charged a setup fee or for the non-utilised capacity of when contractors are not working.

The other large benefit in outsourcing contractor management is that the company in need is not only gaining a ready-made software solution, but also gaining people doing the work who are dedicated experts in their field. Having experts at their disposal is a more efficient option for companies wanting to quickly and easily implement an effective contractor management software.

Contact the team at Oncore on 1300 654 484 for more information on the contractor management solutions available.