What is recruitment and HR outsourcing?

Recruitment and HR outsourcing involves engaging a third-party organization to perform certain HR and recruitment tasks that would otherwise be done onshore. Recruitment roles include sourcing talent, screening, interviewing, post-offer management and onboarding, while HR tasks can cover payroll processing, staff training, managing employee benefits and performance management.

The number of industries partnering with HR and recruitment outsourcing providers in the Philippines is growing, with sectors as diverse as Finance & Accounting, Healthcare, Engineering & Construction, Hospitality & Tourism and IT embracing its associated benefits.

With almost 70% of U.S. employers claiming they are having difficulty filling jobs1, outsourcing recruitment and HR to offshore experts can allow your onshore team to focus on higher value activities while significantly reducing costs.

Watch this video to find out more about outsourcing for recruitment or recruitment process outsourcing (RPO).

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Interested in recruiting an outsourced operations specialist - or a team of specialists - in the Philippines?

Why is the HR and recruitment industry well-suited to outsourcing?

Evolving technology has played a crucial role in creating an environment for companies to outsource HR and recruitment tasks. Where such duties once required extensive face-to-face interactions, recent advancements in online networking and video conferencing platforms mean offshore teams can identify, source and engage with potential recruits remotely. The same applies for online training and education, while the shift to cloud-based platforms is allowing HR managers and teams to manage workloads from different geographic locations.

The HR and recruitment sector is not immune from the general global talent shortage. An ongoing shortage of high-quality candidates with appropriate experience means it is becoming more expensive and difficult to recruit locally, particularly at mid-management level. Outsourcing to the Philippines allows businesses to tap into an entire market of highly specialized HR and recruitment teams that have earned a reputation for being hard workers, enthusiastic and speaking excellent English.

By choosing to outsource HR to the Philippines, your business could reap the following benefits:

  • Cost savings: as the Philippines’ cost of living is lower than most Western countries, your business can outsource repetitive and time-consuming HR and recruitment tasks for a fraction of the price it would cost to hire specialists locally - up to 70% in some cases.
  • Increase in output efficiency and quality levels: sending certain HR and recruitment tasks to an offshore team in the Philippines means your onshore team will have more time, budget and project scope to take on higher-value work.
  • Business growth and scaling opportunities: when you send your time-consuming tasks to an offshore HR and recruitment team in the Philippines, your local team can focus on increasing profits and business growth opportunities. The additional capacity your onshore team gets from your offshore team’s support means you can grow your business sustainably.

With the support of an offshore HR and recruitment team that is highly skilled and boasts extensive experience, you can grow your company quickly and sustainably. The labor pool in the Philippines is known for its tech competency and attention to detail, operating in a fiscal and financial system almost identical to conditions in the West. In fact, the Philippines is one of the most dynamic economies in the East Asia region2, with sound economic fundamentals and a globally recognized competitive workforce.

What roles and tasks can be outsourced in the HR and recruitment industry?

Some popular tasks outsourced in HR and recruitment include:

  • Recruitment consultation and strategy
  • Recruitment process optimization
  • Talent pipeline development
  • Screening and interviewing
  • Post-offer management
  • Onboarding and post-hire
  • Payroll and compensation management
  • Staff training and evaluation
  • Employee benefits and service
  • Recruitment and onboarding
  • Performance management.

Sample HR and recruitment team structures

The size of your business and volume of work required will determine the size and structure of your HR and recruitment team.

A HR team in medium to large organizations is typically formed in the following way, from base level:

team-hr recruitment-chart A

A HR and recruitment team in a small business is normally formed in the following way:

team-hr recruitment-chart B

1 ManPower Group Talent Shortage Survey
2 The World Bank Group. The World Bank in the Philippines. 7 Apr. 2021

Interested in recruiting team(s) in the Philippines?

Since our inception in 2006, MicroSourcing has become one of the biggest providers of offshoring solutions in the Philippines. We can help you build a dedicated team in the Philippines, regardless of the roles and level of specialization you require. MicroSourcing is backed by our parent company, Probe CX, one of Australia’s fastest-growing offshoring solution and customer engagement firms. So, it’s safe to say we’re experts in outsourcing to the Philippines.

Call +1 888-731-0023 today or send us an email to discuss your company’s offshoring needs.

Additional resources



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