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What is Recruiting as a Service (RaaS)?

Released On 9th Jul 2020

Talk of outsourcing recruitment will likely bring to mind traditional recruitment agencies.  Agencies who use a fee based, sliding scale payment model to charge for bums on seats.

Since the dawn of time … (or at least the late 1800’s)

Believe it or not, the first known private employment agency in the UK was founded in 1873 by John Gabbitas who recruited Schoolmasters for Public Schools in England.  The concept began to evolve with the demand for skilled and unskilled staff following the Second World War and huge growth in infrastructure and economy.

So, here’s the big question.  Should we still be using a method to grow and scale our businesses that hasn’t adapted since the 1870’s?

In the traditional commission-based recruitment model, the motivation for the agency is purely transactional.  Person in place, fee due, rinse and repeat.  This is often done for several clients in tandem, and beyond the dreaded ‘rebate’ period, there is generally little to no interest as to the long-term success of the candidate in your organisation, despite often heard protests to the contrary from traditional recruitment consultants.

Until recently, there hasn’t been an alternative for scaling businesses who want to outsource their recruitment other than the traditional recruitment agency route.  But the curtain is beginning to be pulled up on the failings of the fee-based model by a new breed of recruitment outsource provision.

Great candidates – not just any candidates

Recruiting as a Service (or RaaS as it is sometimes referred to) is a relatively pioneering concept in the recruitment world, particularly here in the UK.  It flips the fee-based model on its head and changes the goal of the provider from earning a commission to retaining a long-term client and becoming incentivised to place great candidates – as opposed to any candidates.  In this model, from a commercial aspect, the longer the relationship, the more profitable for the provider, and the longevity of the relationship is based on results and success.

Recruiting as a Service is usually provided through a monthly fee, retained or subscription agreement, without the involvement of success fees, and gives employing businesses the option to build a long term relationship with the outsource provider – by paying for their time and expertise, not just paying a lump sum to place bodies.

The nature of the relationship, being driven by service provision and not transaction, becomes much more embedded within the business, whether a temporary fixture or long-term arrangement.  This is important in ensuring that overarching business goals and strategy are aligned with recruitment plans – and some recruitment as a service provider will support and engage in that activity (here at Mployable that comes as standard).

So, what are the benefits of using a Recruiting as a Service provider?
  • A joined-up approach to hiring and talent strategy.  Alignment with the wider business strategy and over-arching goals.
  • Effectively, an outsourced in-house recruitment team at your disposal, without the additional heads on payroll.  A true partnership.
  • Spread the cost of recruitment across the year, with a fixed monthly payment system.  No surprises and no success fees – just cost savings.
  • Reliable, consistent, and successful approaches to recruitment.  You know what you’re getting, from a team you can trust.
  • Without the concern that your RaaS provider is only after a big fee, you can be confident in their candidate recommendations and advice – ultimately the better they are at this, the more trust is built, and the longer the engagement – which is exactly what a good RaaS provider needs to remain profitable.  Recruiting as a service is always on your side and working in your best interests.
  • Improved candidate engagement.  Instead of dealing with a faceless recruitment agency, your candidates feel like they are dealing with your business directly.
  • Takes away the stress, hassle and time involved with running your recruitment internally.  No systems, programmes, or software to invest in, just let your recruiting as a service provider manage everything for you.

So, for a business owner looking to scale if you can build a true long-term relationship, introduce cost savings, and improve results – surely, it’s a no brainer?

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