recruitment indonesia : insourcing vs outsourcing

Should You Insource or Outsource for Your Recruitment in Indonesia?

  • InCorp Editorial Team
  • 2 February 2020
  • 4 minute reading time

There is an ongoing debate about whether organisations should insource or outsource their recruitment functions when doing business in Indonesia.

This debate sometimes gives entrepreneurs a headache when they have to choose between recruitment insourcing and outsourcing. A good number of them have no idea which is good for their business. We can understand if you are one of them, because deciding on which one to choose really depends on a lot of factors.

So we will not tell you which one to pick, which would be downright ineffective as no one business is the same – one solution certainly does not fit all.

Rather, we will tell you the difference between recruitment outsourcing and insourcing.

This article will dive deep into the difference between the two so that it can shrink your confusion and enables you to select the best sourcing type for your business.

Recruitment Insourcing in Indonesia

Running your own in-house recruiting can have numerous benefits for your business. First of all, you can fully take control of the recruitment process and ensure that you are on the same page with your recruitment department – especially when it comes to following the company’s guideline and standards.

Second of all, you will be able to validate your candidates’ ability and performance through in-house tests and they are what they say on the resume.

In addition to that, you have the opportunity to create your own company custom with an internal recruitment team. It allows the potential candidates to gain insights of your company culture, and understand what the company expects from them.

Recruitment Outsourcing in Indonesia

You may be curious why many businesses still opt for recruitment outsourcing even with the obvious advantages of insourcing.

There is no surprise here. Outsourcing your recruitment to a professional recruiter means that you can reduce your HR costs to the minimum as you do not have to set up your recruitment department yourself.

A recruitment department requires several full-time employees to make it work. Therefore, external recruiter is especially vital to entrepreneurs when they have just started out and does not have the capital and resources.

In addition to cost reduction, professional HR agency has the expert knowledge and expertise you may not have, particularly in the human resource and IT fields. These people can definitely bring in more value to your company such as immense experience to create your talent acquisition strategy and expand your talent pool.

When you are looking for someone to fill a highly specialised position, a right fit can hardly come by if you do not have the network to do so. Thus, recruitment outsourcing can help you to find the person with qualified skills and talent.

Lastly, you and your employees get to save a lot of time without having to handle the complex and tedious process.

Recruitment Outsourcing vs. Insourcing in Indonesia: Which should You Choose?

Now it is time to make a decision: which one is the best fit for your business?

For companies of small and medium sizes with limited financial resources, hiring a recruiter outside your firm can be the best bet.

A recruitment agency has the network and specialty that a new or small company does not have to attract certain candidates, especially when it comes to looking for C-level executives.

For more established businesses, sticking to an internal recruitment team can be a more suitable option. It allows employers to assure their new hire’s quality and ensure that they have a harmonised company culture and work environment with the right people.

Why Choose Cekindo as Your Recruitment Outsourcing Partner

Cekindo’s recruitment outsourcing benefits organisations in many ways by improving the process efficiently through unique methodology and recruitment technology.

Our team of experts handles the process, people and technology to provide you with talent management strategies, accurate reporting and of course, the best candidates.

Our solutions go beyond just recruitment outsourcing. Now, you don’t need to spend a lot of money on training and developing a talent anymore. We take care of everything while helping you reduce costs, increase productivity and boost your brand.

Cekindo also elevates your recruiting department, allowing you to maximise the potential of new talents into your business.

Talk to us now and a custom recruitment outsourcing solution awaits. Start by filling in the following form.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

Before entering into any agreement with our clients, we sign a data protection agreement to ensure that all data are kept confidential across all involved activities.

According to the Indonesia’s Manpower Law employers can hire the Indonesian talents either under a temporary or a permanent contract.

  • Prohibit any form of discrimination and provide equal opportunity for Indonesians and expatriates
  • Increase the competence of the workers by giving or encouraging job training
  • Follow the procedures of termination (Terminating an employee in Indonesia can be a long, tedious, and expensive process.)
  • Observe the working hours, holidays, and overtime regulations
  • Give mandatory employee benefits including social security and health insurance
  • Withhold only the right amount of income tax on behalf of the employees
  • Follow the wages and other benefits outlined by the law
  • Process the work permits for foreign employees

As a leading recruitment outsourcing provider in Indonesia, InCorp offers comprehensive services. We will conduct an in-depth background check on candidates to verify references and qualifications.

Cost reduction, hiring time reduction, hire quality are among the most noteworthy benefits your company can enjoy.