How Recruiting On Demand can Mitigate Risk of Failure for Small Businesses

Key Takeaways

– Recruiting on demand can be beneficial for small businesses who want to scale their business as per their requirements.

–  On-demand recruitment will help such firms looking to save costs while hiring the most talented individuals.

– Recruiting on demand is a flexible hiring strategy that can be beneficial for businesses that experience sudden increases in hiring or staffing shortages.

The world economy thrives on the growth of small businesses as they play a crucial role in generating employment and increasing the overall GDP. It is difficult to know the precise number of small businesses in the world right now, but some estimates suggest it ranges from 300 to 400 million. Unfortunately, many of these small enterprises fail each year due to a multitude of factors, including inadequate hiring practices. 

Recruiting on demand is a new practice that came to the limelight a few years ago. Countless startups worldwide use on-demand recruitment services to refine their hiring process and reduce costs. Exorbitant recruitment cost is an issue that troubles many small businesses, often causing them to shut down. The infographic below shows the cost of hiring executives and non-executive professionals.

Source: Zippia

As seen by the above figure, hiring an executive employee can cost up to 18,000 dollars, which might be an unreasonable amount for many small companies. Hence, recruiting on demand could be an excellent solution for enterprises that want to save resources while hiring the most talented professionals.

What Is On-Demand Recruitment and How It Works

Before learning how recruiting on demand can help small businesses, you should know what on-demand recruitment is and how it works. In layman’s terms, On-demand recruiting is a service that offers hourly or project-based hiring to fill an organization’s current workforce needs. 

It is a new recruitment model where companies who need fast and efficient hiring outsource their recruitment to specialists. Depending on the nature of the job, on-demand employees may work on-site or remotely. Some tech roles, like data engineers and Java developers, can be hired remotely.

This flexible hiring strategy can be beneficial for businesses that experience sudden increases in hiring or staffing shortages. HR executives and business owners may achieve their talent acquisition objectives with on-demand hiring without sacrificing their time or productivity in the process.

Flexible, quick, and industry-specific talent expertise are the main focuses of recruiting on demand. Businesses of all sizes and sectors can gain flexibility, scalability, and speed from on-demand recruitment. With on-demand recruiting, you have the freedom to decide how long and when you need talent acquisition services based purely on your requirements.

Most on-demand recruitment service providers follow the below-mentioned procedure:

  • The first 20 to 30 minutes of the on-demand hiring procedure are spent discussing your particular hiring difficulties.
  • The talent you need can be found right away thanks to the deployment of an on-demand team of recruiters and sources.
  • You may hire your team of on-demand recruiters for as little as a few weeks or as long as a few months. 

Benefits of Recruiting On Demand for Small Businesses

It is a well-established fact that companies are facing challenges while executing their recruitment plans, as pointed out by countless surveys and reports. Linkedin, one of the largest job boards and connection platforms, released a report about the top recruitment trends in the past few years. 

The Linkedin report revealed many critical findings, such as that 63% of hiring managers believe that talent shortage is their biggest hurdle. Whereas more than 40% of recruiting managers say that entry-level positions are among the hardest to fill due to a mismatch between employer and employee expectations. 

The below figure shows the findings of a survey conducted by Bull Horn. The findings show the top challenges faced by hiring managers and recruiters in the United Kingdom:

recruiting on demand

Source: Bull Horn

Going by the data above, it is clear that HR managers face tremendous hardships and troubles when hiring the most qualified and talented employees. However, most of these challenges can be overcome by switching to a recruiting on demand approach, which will help you save costs and streamline your entire recruitment process. 

Here are some of the benefits of an on-demand recruitment model: 

1. Access To Cutting Edge Technology

The majority of on-demand recruiters have years of hiring experience in addition to talent technology tools that give them more access to and understanding of your target talent markets. The staff that is sent to your firm won’t face any learning curves or challenges because recruiters are also educated in the use of many of the most common ATS and CRM systems.

2. Enhanced Pool of Expert Recruiters

When you work with an on-demand recruitment partner, a team of knowledgeable recruiters with experience in your industry is sent to you to augment—not replace—your current HR or recruiting teams. You are given the assistance you require right now, with the option to scale and adapt as your needs evolve. There is no disturbance to your talent program because the recruiters use your current technologies and adhere to your recruitment procedures. Additionally, recruiters have access to extensive talent networks in various sectors and occupations.

3. Increased Flexibility in HR Practices and Hiring Costs

The requirement for full-time recruiters can be decreased by using an on-demand recruiting service. Labor rules hinder businesses from abruptly changing their staffing levels since they must pay severance to workers they fire and spend months on hiring when they need to ramp up their workforce again. 

Employees that work on-demand are paid more for their services but are also aware that their position is temporary. Companies can swiftly scale up or down on-demand talent based on market demands. In a typical recruitment approach, hiring managers and HR executives must adhere to federal and state labor rules while employing a full-time employee. In this case, on-demand hiring offers more flexibility.

Hiring managers can keep their on-demand workforce as long as necessary or let them go when demand declines, thanks to the on-demand recruiters who join the team as needed.

4. Performance Management and Analytics

Deep-dive analytics on the number of applicants and recruiting landscape in your business can be provided via on-demand recruitment solutions. You can use these insights both during and after the engagement to enhance your hiring results. Additionally, on-demand teams collaborate with stakeholders to establish hiring goals and offer thorough weekly tracking of candidate pipelines, hiring outcomes, and accountability.

Furthermore, recruiting on demand can help solve another major issue faced by small enterprises that leads to increased costs. This is performance management and monitoring, which can be improved significantly by choosing the right service provider for your on-demand recruitment needs.

5. Solves Urgent Recruitment Needs Without Long Term Commitment

Organizations can receive recruiting assistance from on-demand recruiters without entering into long-term agreements or paying the fees associated with conventional staffing firms. You must increase the number of permanent recruiters on staff to utilize the experience of seasoned recruitment specialists whenever and wherever you need them. You can engage in on-demand recruitment once, or if the necessity arises in the future, you can do so again.

Best Practices To Follow When Recruiting On Demand

Recruiting on demand can solve most hiring problems, but you can follow certain practices to further smoothen the process. By following these steps in your on-demand recruitment strategy, you can expect the best results at a minimal cost: 

  1. Work with a few service providers: The market is full of hundreds of on-demand talent firms but only a handful of them are good. Also, it would help if you worked with a couple of service providers in this space as y our employees can become accustomed to the on-demand company and perform more effectively by concentrating on a small number of companies that are beneficial to your organization.
  2. Provide a comprehensive description of your talent needs: In order to successfully match your firm with the right talent, on-demand recruiters must have a thorough understanding of the business requirements. You should provide them with necessary information like your budget and other relevant project details. 
  3. Planning and execution: Although it is faster than regular recruitment, on-demand recruitment still takes a lot of time which can extend if you don’t do adequate planning. You should carefully plan your talent needs and convey the same to your service provider as soon as possible.

If you’re interested in learning more about recruiting on demand and how it might benefit your small business, get in touch with BenchPoint, a healthcare recruitment company. We’ll show you how to maintain an ongoing hiring pipeline so qualified candidates are always only a click away.

We have a history of guaranteeing client pleasure. We are here to answer any questions you may have and will work with you to create hiring strategies that are more efficient and streamlined.