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7 benefits of outsourced sales for recruitment Agencies in 2023

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As Recruitment partners and agencies are making their first cautious steps towards a comeback, founders try to evaluate the outcomes of the lockdown and the impact of the economic recession. So, the question is: how to minimize the losses? Outsourcing sales might be one of the answers.

Recruitment agencies face the constant challenge of attracting new clients and filling job positions efficiently. Outsourcing sales can provide a range of benefits for such organizations. From increased flexibility to cost savings, outsourcing sales can help recruitment agencies achieve their goals more effectively. In this article, we will discuss 7 key benefits of outsourcing sales for recruitment agencies and how they can contribute to overall success.

Outsourced Sales at a Glance

Outsourcing sales can be a smart business decision, offering numerous advantages such as reducing costs. However, it’s important to consider the potential drawbacks as well. There are two main models of outsourced sales: full-stack and mixed.

Full-stack Outsourced Sales Model

In this model, the provider takes care of the entire sales process, from lead generation to closure. It’s a great option for start-ups, particularly technology companies that don’t have the resources to hire an in-house team.

Mixed Outsourced Sales Model

With this model, a company delegates a specific part of the sales process to a provider. There are three types of mixed models: vertical, horizontal, and geo-related.

a. Vertical Outsourced Sales Model – In this approach, the sales funnel is divided into two parts, one managed internally and the other externally. Typically, the provider handles the lead generation stage and passes the qualified leads or appointments to the internal sales team.

b. Horizontal Outsourced Sales Model – In this strategy, both internal and external teams work simultaneously, either sharing one market or dividing markets as needed. This approach is ideal for growth, expansion, testing new products, and sales strategies.

c. Geo-related Outsourced Sales Model – This model is often used by multinational companies with an internal team at their headquarters working solely on the domestic market and local providers to minimize risks and reduce costs in other regions.

Benefits of sales outsourcing teams

1. Financial Advantages of Outsourced Sales Teams

When it comes to outsourcing, cutting costs is always a top priority for companies. Sales outsourcing teams offer several financial benefits that can help businesses save money.

a. Salaries – While reducing employee salaries is a common way to cut costs, outsourcing sales teams can save money on managerial expenses. These teams often operate from lower-wage locations, and their large sales teams allow for a more efficient and cost-effective hierarchical structure.

b. Rent and Office Costs – Outsourcing sales teams can also help reduce rent and hardware expenses by operating from locations with lower costs.

c. Hiring and Training Costs – The average onboarding period for outsourced sales companies is typically two weeks to one month, compared to the three months it takes for a sales development rep to ramp up. This can significantly reduce hiring and training costs.

d. Techstack – Outsourced sales providers use up-to-date software that can reduce costs by bulk purchasing subscriptions or sharing one account between multiple reps.

2. Expertise

Managed sales services offer a range of expertise that can benefit companies without incurring a high cost.

a. Product and Industry Knowledge – Sales outsourcing teams have experience working with various products, services, markets, and industries.

b. Client Database – These teams also have a database of previous clients that they can draw from.

c. Management Expertise – Outsourced sales providers bring expertise in management and can help companies operate more efficiently.

d. Sales Process – Many providers have developed and trained their reps in effective sales processes to optimize performance.

3. Time-saving

One of the main benefits of sales outsourcing is the reduced time required for hiring and training employees. Additionally, the quick replacement of employees in case of churn, vacation, or illness helps to maintain a consistent workflow.

4. Scalability and Flexibility

Scaling sales can be challenging, but outsourcing provides the ability to grow or shrink the sales team as needed quickly. This is particularly useful in times of uncertainty when being able to adjust rapidly is crucial. An example is a biotech company that hired an outsourced sales development team to penetrate a small market, which generated so many leads that the cooperation had to be temporarily stopped.

5. Expansion into New Markets

Expanding into new markets, whether for a new product, region or target audience, can be facilitated by an outsourced sales team that can quickly build a sales process from scratch. The low costs and ability to withdraw anytime provide opportunities for experimentation and testing new strategies.

6. Accountability

One potential concern with outsourced sales is the lack of control over the external team. However, reliable providers often provide weekly or monthly reports to ensure accountability.

7. Risk Reduction

Outsourcing sales teams can help reduce the risks associated with building and managing in-house sales teams, such as the risk of hiring the wrong person. Hiring a local provider when expanding into a new country can also mitigate risks by providing knowledge of the local legislation, economy, and business rules.

Summary

Outsourcing sales can bring a lot of benefits to recruitment agencies. It can reduce costs by cutting salaries, rent and office expenses, hiring and training, and tech-stack expenses. Sales outsourcing teams also bring expertise in areas such as experience with your type of product or service, market, industry, clients, and sales processes.

In addition to these financial benefits, sales outsourcing can save time by onboarding reps more quickly, allowing scalability and flexibility, and expanding to new markets. It can also provide accountability through weekly or monthly reports and reduce risks associated with building and managing sales teams.

If you’re interested in outsourcing sales, we’re here to help! Reach out to us to determine what model will work best for your recruitment agency. We offer a Pay-per-cure model where you only pay us when we earn for you.

Greenhouse

ATS Review Series: GREENHOUSE

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Greenhouse

Greenhouse is a popular applicant tracking system (ATS) known for its comprehensive and flexible features. Here is an analysis of the system, including its pros, cons, cost, and user feedback:

Pros:

  • Comprehensive feature set: Greenhouse offers a wide range of features designed to make recruitment more efficient and effective. Some key features include customizable application forms, advanced resume parsing, automated workflows, and reporting and analytics tools.
  • User-friendly interface: Greenhouse is known for its user-friendly interface, which is easy to navigate and understand. This makes it easy for organizations to get started with the system and begin using its features right away.
  • Advanced automation: Greenhouse has a wide range of built-in automation tools that can help to streamline the recruitment process. These tools can save organisations a significant amount of time and effort compared to manually performing tasks.
  • Integrations with other tools: Greenhouse offers a range of integrations with other recruitment tools, such as video interview software and assessment tools. This allows organisations to streamline their recruitment process further by connecting with tools they already use.

Cons:

  • Higher cost compared to other ATS: Greenhouse is considered as a high-end ATS and the cost is relatively higher than some other ATS systems available on the market.
  • The steep learning curve for beginners: The system is quite robust and can be a bit challenging for organizations unfamiliar with using an ATS. Some users report that it takes some time to fully understand and utilize all the features offered by the system.

Cost:

  • The cost of Greenhouse is not publicly disclosed as it is usually negotiated with the company. However, as mentioned earlier, it’s a relatively higher-end ATS, and some reports suggest that it could be on the higher end of the pricing spectrum.

User feedback:

  • Overall, Greenhouse has received positive feedback from users. Many organizations appreciate the system’s comprehensive feature set, user-friendly interface, and advanced automation tools. Some users also report that it has helped them significantly reduce the time and effort required to manage the recruitment process. However, some users also mentioned the cost and the steep learning curve as potential downsides of Greenhouse.
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5 Top Recruitment Trends to Focus On in 2023

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The impact of the COVID-19 pandemic, the Great Resignation, and the recent economic crisis have resulted in permanent changes to the work environment, and talent leaders need to adapt. To attract and retain top talent in 2023, it will be crucial to focus on digital-first strategies and use targeted communication tactics. In this article, we’ll highlight the leading trends affecting recruitment this year.

1. Employer Branding

The importance of employer branding in attracting job seekers is becoming increasingly vital as employees have higher expectations of the companies they work for. 57% of job seekers state that a company’s brand is a significant factor when considering a new job. To effectively reach potential candidates, it’s necessary to do more than rely on the marketing department’s brand guidelines.

To enhance your employer’s brand and reputation, it’s essential to consider the current trends necessary for employees, such as corporate sustainability, culture, diversity, equity, and inclusion. Surveys have shown that 70% of job seekers prefer to work for companies committed to diversity, and 41% of candidates will decline a job offer if the company’s sustainability values don’t align with their own.

To strengthen your brand and reputation, focus on implementing and investing in internal sustainability, culture, and DEI programs, including following ESG standards, promoting positive hybrid workplace models, and providing inclusive mentorship and training opportunities. Additionally, develop a content strategy that aligns with your audience’s needs and showcases your unique offerings.

2. Data-driven recruiting

With companies increasingly focused on gaining cost efficiencies, recruiters are going to be put in the position of needing to gain deeper data analysis skills to meet C-suite’s expectations. Since recruitment strategies can span across several channels, programs and departments, it’s more important than ever to have a data-backed strategy that tells you exactly where your efforts are most profitable and efficient to gather quality candidates.  

Suppose you’re not actively using Google Analytics (or a supplemental website analytics tool), an email automation tool, and an Applicant Tracking System (ATS). In that case, it’s time to familiarize yourself with their capabilities. The expertise to correctly set up such tools and reports can come from your internal marketing teams, your software’s customer support, or a trusted recruitment marketing partner. A complete outline of critical KPIs to discuss with your teams can be found in our previously stated Guide to Successful Talent Acquisition. While it can take several months to integrate a proper reporting system for your recruitment efforts, you’ll know that you’re well on your way to having a solid data structure in place when you’re able to answer the following questions intelligently: 

  • What are your hiring goals (i.e., number of hires, the top source of hires, acceptance rate)? Are you hitting your monthly KPIs? 
  • How long does it take to onboard and train a new employee? 
  • What is the quality of your candidates and hires? 
  • How much does it cost to recruit a new candidate? 

With proper reporting structures, Investis Digital enabled clients to achieve goals like a: 

  • 25% increase in applicants 
  • 74% reduction in cost-per-applicant 
  • 206% increase in conversions

3. Talent pool growth & usage 

Recruitment marketing requires building a qualified talent pool through various strategies, including content creation, online engagement, analytics tracking, and a CRM. The goal is to gain the audience’s trust and contact information. Segmenting email lists and communications is a best practice to personalize communication and avoid spamming. Investing in nurturing first-party lists of engaged individuals can lead to cost-effective communication in the long run. The talent recruitment industry is growing, and competition for attention is increasing, so it’s essential to gather your share of the talent pool now.

4. Freelance & fractional professionals

The increase in freelance professionals results from technological advancements, economic changes, and full-time employees opting for side hustles. It’s time to consider the benefits of incorporating freelance specialists and fractional executives into your company. Using internal data from operations and project management teams, identify which projects may not require full-time hires. While it’s not advisable to only hire freelance and fractional employees, a mix of full-time and part-time staff can make the company more efficient in 2023.

If part-time professionals are suitable for your company, ensure that job postings are updated and remain competitive with other similar posts. Building recognition with a new audience takes time. One way to start is by building relationships with freelance/fractional service organizations or agencies that provide outsourced work.

5. Retention

The impact of the Great Resignation is still felt as many are still changing jobs, as seen on LinkedIn. As employers, it’s essential to maintain high morale and attract new talent while competing with companies offering better remote/flexible work, unique training, and positive cultures. Only one in four employees are confident in their current careers, making employee retention a top priority in 2023.

Although budgets may be cut, HR departments play a crucial role in the company’s success. Invest in retention efforts that matter most, surveying staff and recent hires to understand what advances their careers and what they’d like to see. Based on career levels and departments, the survey will provide a comprehensive understanding of what matters most to your talent. Managers should act on findings and use positive company programs and accolades to enhance their EVP and employer brand.