How to Outsource Recruitment to Save Costs Without Sacrificing Quality: Cut Hiring Spend by 40%
- dfrancis2
- Nov 25, 2025
- 10 min read
How to Outsource Recruitment to Save Costs Without Sacrificing Quality
To outsource recruitment and save costs without sacrificing quality, switch from traditional agencies charging 15 to 25% of salary to fixed-fee or subscription models. These alternatives cost £795 to £1,500 per role instead of £4,000 to £8,000, reducing your cost per hire by 30 to 40%. The key is choosing partners with proven screening processes, dedicated recruiters, and clear quality metrics to maintain hiring standards.
Table of Contents
What Is Recruitment Outsourcing?
Recruitment outsourcing means hiring an external partner to handle some or all of your hiring tasks. Instead of doing everything yourself, you work with specialists who find candidates for you.
Here's what they typically handle:
Writing and posting job adverts
Searching CV databases for suitable candidates
Screening applications
Conducting initial interviews
Creating shortlists
Coordinating interview schedules
Handling candidate communication
The main types of recruitment outsourcing:
Recruitment Process Outsourcing (RPO). A provider takes over your entire recruitment function. They become an extension of your HR team. This works well for companies with high hiring volumes.
Fixed-Fee Recruitment. You pay one transparent fee per role. No percentage of salary. No surprises. Services like Kamro's fixed-fee recruitment charge from £795 per role, regardless of the salary level.
Subscription Recruitment. Pay a monthly fee for unlimited hires. Think of it like Netflix for recruitment. Perfect if you hire regularly throughout the year.
Project-Based Outsourcing. Hire help for specific projects or busy periods. Good for seasonal peaks or one-off expansion.
The process is straightforward. You brief the partner on your needs. They source candidates. You interview and make final decisions. They handle the admin.
How Much Does Recruitment Outsourcing Cost in the UK?
Let's talk numbers. The average cost per hire in the UK is £6,125, according to the Chartered Institute of Personnel and Development.
Traditional agencies charge 15 to 25% of the candidate's first-year salary. For someone earning £35,000, that's £5,250 to £8,750 per hire.
Here's how different models compare:
Traditional Recruitment Agency:
Cost: 15 to 25% of salary
For a £35k role: £5,250 to £8,750
For a £50k role: £7,500 to £12,500
Best for: Executive or highly specialised roles
Fixed-Fee Recruitment:
Cost: £795 to £1,500 per role
Same price regardless of salary
Best for: Most permanent roles under £60k
Example: Kamro offers transparent pricing starting from £795
RPO (Recruitment Process Outsourcing):
Cost: £2,000 to £4,000 per hire
Often includes monthly retainer
Best for: High-volume hiring needs
Subscription Model:
Cost: £795 to £2,500 per month
Unlimited hires included
Best for: Regular, ongoing recruitment
Example: Kamro's subscription service offers unlimited hires
Real savings example:
Company hiring 10 staff at £35k each:
Traditional agency (20%): £70,000
Fixed-fee model (£995 each): £9,950
Saving: £60,050
That's an 86% cost reduction.
The UK average time to hire is 42 days. Outsourcing typically cuts this by 30 to 50%. Faster hires mean less productivity loss from vacant positions.
7 Proven Ways to Outsource Recruitment While Protecting Quality
1. Partner With a Fixed-Fee Recruitment Agency
Fixed-fee agencies charge one transparent price per role. You know the exact cost before you start.
How quality is maintained:
Dedicated recruiters learn your company culture
All candidates are pre-screened before you see them
Telephone interviews weed out unsuitable applicants
You get detailed candidate profiles upfront
Online portals let you track progress in real-time
Kamro acts as your in-house recruitment team, handling everything from adverts to shortlists. Their recruiters embed into your business, not just send CVs.
Cost comparison:
Engineer role at £40k salary
Traditional agency fee: £8,000 (20%)
Fixed-fee alternative: £795
Saving: £7,205 per hire
2. Use RPO for High-Volume or Seasonal Hiring
RPO providers handle bulk recruitment. They're perfect when you need to hire lots of people quickly.
Quality controls in RPO:
Standardised screening processes
Advanced assessment tools
Data-driven candidate matching
Regular quality-of-hire tracking
Performance metrics tied to retention rates
Research shows RPO delivers 40% faster time-to-hire and 30% lower cost-per-hire.
3. Adopt a Subscription-Based Model for Regular Hiring
Pay monthly for unlimited recruitment support. No per-hire fees. No commission charges.
How subscriptions maintain standards:
Same dedicated team throughout
They learn your requirements over time
Continuous improvement from feedback
No rush to place unsuitable candidates
Long-term partnership mentality
This model suits companies hiring 3 or more roles annually. The recruiters become true partners, not just vendors.
4. Use a Hybrid Approach
Keep some recruitment in-house. Outsource the time-consuming parts.
What to outsource:
Job advert writing and posting
CV database searches
Initial application screening
First-round telephone interviews
Interview scheduling
Reference checking
What to keep internal:
Final interviews
Cultural fit assessment
Offer negotiations
Onboarding
This gives you control without the admin burden. You focus on decision-making while experts handle sourcing.
5. Work With Specialist Recruiters for Niche Roles
Sector specialists have ready-made talent pools. They know where to find hard-to-reach candidates.
Quality advantages:
Deep industry networks
Access to passive candidates (not actively job hunting)
Understanding of technical requirements
Credibility with senior candidates
Faster identification of top talent
Use specialists for technical, medical, or senior roles. Use generalists or fixed-fee services for standard positions.
6. Choose Technology-Enabled Partners
Modern recruitment uses software to improve quality and speed.
Essential technology features:
Applicant Tracking Systems (ATS) for organised workflows
AI-powered CV screening for consistency
Video interview platforms
Skills testing integration
Real-time reporting dashboards
Kamro provides an online portal where you see every candidate, every conversation, and every stage of progress. Full transparency builds trust.
7. Set Clear Quality Metrics From Day One
Define what success looks like before you start.
Key quality metrics to track:
Quality of hire (performance reviews after 6 months)
Interview-to-offer ratio
Offer acceptance rate
90-day retention rate
Hiring manager satisfaction scores
Time-to-productivity for new starters
Write these into your Service Level Agreement (SLA). Review them weekly or monthly. Good partners welcome accountability.
Top 10 Benefits of Outsourcing Your Recruitment
Massive Cost Savings. Save 30 to 40% compared to traditional agencies. Fixed fees eliminate percentage-based charges.
Predictable Budgets. Know your exact recruitment spend upfront. No surprise invoices when someone accepts an offer.
Access to Expertise. Professional recruiters do this full-time. They know sourcing techniques you don't.
Faster Hiring. Reduce time-to-hire from 42 days to 28 days average. Dedicated resources move quicker.
Scalability. Easily ramp up during busy periods. Scale down when hiring slows. No permanent staff to manage.
Focus on Core Work. Your team stops drowning in CVs. They focus on strategy, not admin.
Better Candidate Experience. Professional, consistent communication. Quick responses. Clear processes. This protects your employer brand.
Advanced Tools. Get access to premium job boards, ATS systems, and CV databases without buying them yourself.
Compliance Support. Experts understand UK employment law, right-to-work checks, and GDPR requirements.
Quality Improvement. Specialist screening techniques catch unsuitable candidates early. You only see people worth interviewing.
How to Choose the Right Recruitment Partner
Finding the right outsourcing partner makes all the difference.
10 essential questions to ask:
What experience do you have in our industry sector?
What's included in your quoted fee?
How do you screen candidates for quality?
What technology and job boards do you use?
What's your average time-to-hire?
How do you handle UK employment compliance?
What reporting will I receive?
What's your candidate-to-interview ratio?
Do you offer any guarantees or rebate periods?
Can you provide UK client references I can contact?
Red flags to watch for:
Vague or confusing pricing structures
No verifiable track record
Promises that sound unrealistic
Poor communication during the sales process
Reluctance to provide references
No quality guarantees
Your evaluation checklist:
☐ UK-based with local market knowledge☐ Transparent, fixed pricing☐ Proven track record (2+ years minimum)☐ Technology-enabled recruitment process☐ Dedicated account manager assigned☐ Clear quality metrics and SLAs☐ Positive reviews and testimonials☐ Experience in your sector☐ Strong compliance procedures☐ Cultural fit with your organisation
Compare different recruitment options to understand what each offers. Not all providers are equal.
Common Mistakes to Avoid When Outsourcing
Mistake 1: Choosing Based Only on Price
The cheapest option often delivers poor results. Look at the full service, not just the headline price.
What to check:
What's actually included?
Is there a dedicated recruiter?
Do they actively source or just post adverts?
What support do you get?
Mistake 2: Not Setting Quality Standards Upfront
If you don't define quality, you'll get quantity instead.
Solution:
Write detailed job descriptions
Specify must-have vs nice-to-have skills
Set clear expectations on candidate quality
Define how success will be measured
Mistake 3: Failing to Integrate the Partner
Treating your recruitment partner like an external vendor creates distance. They need to understand your culture.
Better approach:
Share your company values
Explain your team dynamics
Involve them in team meetings
Give honest feedback on candidates
Mistake 4: Ignoring Candidate Experience
Your recruitment process reflects your brand. Poor candidate treatment damages your reputation.
Monitor:
Response times to applications
Quality of communication
Professionalism of process
Feedback from unsuccessful candidates
Mistake 5: Not Checking References
Always speak to previous clients. Ask about quality, reliability, and results.
When outsourcing won't work:
You have no clear job descriptions
Your expectations are unrealistic
You won't communicate regularly
Hiring managers resist external help
You need fewer than 2 hires per year
Be honest about whether outsourcing suits your situation.
When Should You Outsource vs Hire In-House?
Outsource recruitment when:
You hire 5 or more roles annually
Your current cost per hire exceeds £6,000
Time-to-hire consistently exceeds 42 days
You lack specialist recruitment expertise
Your HR team is stretched thin
You face seasonal hiring peaks
You're expanding into new locations
Your job ads attract poor-quality applicants
Keep recruitment in-house when:
You hire only 1 to 2 people yearly
You have a strong existing recruitment team
Your roles require deep company knowledge
You work in highly specialised niche sectors
Budget is extremely tight (under £500 per hire)
You need complete control over every interaction
ROI calculation:
Calculate your current recruitment costs:
Internal staff time (hours × hourly rate)
Job board subscriptions
Agency fees
Lost productivity from vacancies
Compare against outsourcing costs. The break-even point usually comes after 3 to 5 hires.
Real example from a Kent-based business:
Before outsourcing:
8 hires per year
Traditional agency at 18% commission
Average salary: £35,000
Annual cost: £50,400
After switching to fixed-fee:
Same 8 hires
Fixed cost: £995 per role
Annual cost: £7,960
Saving: £42,440
That's 84% less while maintaining quality. The fixed-fee model from Kamro delivered pre-screened candidates faster than agencies had previously.
Emerging Trends in Recruitment Outsourcing for 2025
The recruitment world is changing fast. Here's what's happening now.
AI-Powered Candidate Matching
Artificial intelligence is improving how candidates get matched to roles. AI tools scan CVs, match skills to requirements, and predict job fit.
Benefits:
Faster initial screening
More consistent evaluation
Reduced unconscious bias
Better quality shortlists
Many recruitment agencies in Kent and across the UK now use AI-assisted sourcing alongside human expertise.
Subscription Models Growing in Popularity
More businesses are switching to monthly subscription recruitment. Pay one fee for unlimited hires.
Why it's growing:
Predictable monthly costs
No per-hire panic
Better long-term partnership
Encourages quality over quick placements
This model suits scale-ups and growing SMEs particularly well.
Increased Focus on Candidate Experience
Poor candidate experiences spread quickly online. Companies now demand recruitment partners who treat applicants professionally.
2025 standards:
Responses within 48 hours
Clear, honest communication
Constructive feedback for unsuccessful candidates
Smooth, efficient processes
Your recruitment partner represents your brand. Choose carefully.
Hybrid and Remote Recruitment
Remote working has opened up talent pools. Recruitment outsourcing now commonly includes:
Video interview platforms
Remote onboarding support
Nationwide candidate sourcing
Flexible working arrangements
Location matters less. Skills matter more.
Data-Driven Decision Making
The best outsourcing partners provide detailed analytics:
Source-of-hire tracking (where good candidates come from)
Time-to-hire by role type
Cost-per-hire breakdowns
Quality-of-hire metrics
Retention rate analysis
This data helps refine your recruitment strategy over time.
According to recruitment industry statistics, companies using data-driven recruitment see 25% better hiring outcomes.
FAQs
How much does recruitment outsourcing typically cost in the UK?
Costs vary by model. Fixed-fee services charge £795 to £1,500 per role. Traditional agencies take 15 to 25% of salary (typically £4,000 to £8,000 for mid-level roles). RPO providers charge £2,000 to £4,000 per hire. Subscription models cost £795 to £2,500 monthly for unlimited hires. The UK average cost per hire is £6,125, which outsourcing can reduce by 30 to 40%.
Will outsourcing reduce the quality of candidates?
No, quality outsourcing improves candidate quality. Specialist recruiters have better sourcing tools, wider networks, and more screening time than busy HR teams. The key is choosing proven partners with clear quality metrics, sector experience, and robust screening processes. Look for providers offering pre-interviewed candidates and quality guarantees.
What's the difference between RPO and fixed-fee recruitment?
RPO (Recruitment Process Outsourcing) means outsourcing your entire recruitment function, usually on a monthly retainer. It suits high-volume hiring. Fixed-fee recruitment charges one transparent price per role (£795 to £1,500). You pay the same whether hiring a £25k or £50k role. Fixed-fee works best for occasional hiring or small to medium businesses.
How long does outsourced recruitment take?
Outsourcing typically delivers first candidates within 1 to 2 weeks. Most standard roles are filled within 4 to 8 weeks from brief to hire. This is 30 to 50% faster than the UK average of 42 days. Implementation takes 1 to 2 weeks for onboarding, then active sourcing begins immediately.
When should a business outsource recruitment?
Outsource when hiring 5 or more roles yearly, spending over £6,000 per hire, experiencing time-to-hire above 42 days, or lacking specialist recruitment expertise. Also consider outsourcing during seasonal hiring peaks or rapid expansion. Keep in-house if hiring just 1 to 2 roles annually or if you have a strong existing recruitment team.
Can I outsource just part of my recruitment process?
Yes. Many businesses outsource admin-heavy tasks like job advertising, CV screening, and initial interviews while keeping final interviews and cultural assessment in-house. This hybrid approach gives you cost savings and expert support while maintaining control over hiring decisions. It's often the best starting point for outsourcing.
Is subscription recruitment better than paying per hire?
It depends on your hiring frequency. Subscription models (£795 to £2,500 monthly) suit businesses hiring 3 or more roles yearly. You get unlimited hires for one monthly fee. Per-hire models suit sporadic hiring. Calculate your annual needs: if regularly recruiting, subscription typically costs less while building better long-term partnerships.
What should I look for in a recruitment outsourcing partner?
Look for UK-based providers with transparent pricing, proven track records (2+ years, 100+ placements), technology-enabled processes, and dedicated account managers. Check they offer clear quality metrics, have positive client reviews, understand your sector, and demonstrate strong compliance procedures. Always request and contact references before committing.
Final Thoughts
Outsourcing recruitment saves money without compromising quality when done right. The key is choosing the right model and partner for your needs.
Traditional agencies charging 15 to 25% of salary are expensive. Fixed-fee alternatives starting from £795 per role deliver the same quality for a fraction of the cost.
The evidence is clear. Businesses save 30 to 40% on recruitment costs while often improving candidate quality through specialist expertise.
Here's what matters most:
Choose partners with transparent pricing
Set clear quality standards upfront
Ensure they use technology effectively
Check they provide regular reporting
Verify their UK compliance knowledge
Look for proven sector experience
Kamro's recruitment services demonstrate how modern outsourcing works. Fixed fees from £795. No commission. Dedicated recruiters who become part of your team. Over 2,000 UK businesses have switched to this model.
Start small if you're unsure. Try outsourcing one or two roles. Measure the results. Compare the cost, quality, and time saved against your usual approach.
The recruitment landscape has changed. You no longer need to choose between cost and quality. The right outsourcing partner delivers both.
Ready to cut your recruitment costs? Get a no-obligation quote to see exactly how much you could save. Or compare your options to understand which recruitment model suits your business best.
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