When most staffing and recruiting companies think of outsourcing, they typically think of partnering with a company to get either sourcing or screening support. While those two functions have historically been the most common outsourcing choices, increasingly companies are choosing to get outsourced help for their administrative and transactional tasks. Whether the tasks are formatting resumes, servicing candidates, performing reference checks, cleaning up databases, or posting jobs, companies are finding that administrative tasks are an attractive outsourcing fit for a variety of reasons. Here are three key ones:

1. Eliminating Management Hassles. Administrative roles in our industry tend to be performed by entry- or lower-level employees, and there are typically challenges in hiring, training, and managing staff to perform these functions. Worse, once you do get staff in place, turnover tends to be high, and you have to repeat the process. With an outsourced relationship you can push much of that pain to your partner. This allows management to focus more time and energy on building client relationships and placing great candidates.
2. Cost Savings. Oftentimes the cost savings associated with administrative work is compelling. If you have staff dedicated entirely to administrative and transactional work and an outsourced partner can produce the same volume of output with the same quality, oftentimes you can drop 50 percent of your budget for those roles to your bottom line. For larger staffing companies that can mean increasing profitability by $1,000,000 or more annually.
3. Flexibility. Outsourcers maintain staff levels so you don’t have to, enabling you to ramp up as demand increases and decrease the amount of outsourced work when demand lessens. Partnering with an outsourcer allows you to avoid the expense of having excess staff on board, adding to cost savings, while at the same time giving you the ability to quickly flex up your capacity.

For certain administrative support work, the benefits of outsourcing can be compelling. As a result, a growing portion of the staffing and recruiting industry is moving to an outsourced model for portions of their administrative work.