A new report from Uganda’s Inspectorate of Government (IGG) has highlighted the costly use of private recruiters by government agencies. The report reveals that these agencies are spending up to five times more to recruit staff through private firms than they would using internal recruitment processes.
The report, titled “The Cost-Benefit Analysis of Outsourcing Private Recruitment Firms by Government Departments and Agencies,” shows a troubling trend of outsourcing recruitment, which costs taxpayers significantly more. It finds that outsourced recruitment accounted for 81% of the total recruitment expenditure, amounting to over Shs2b to hire 1,028 employees. Meanwhile, internal recruitment processes cost Shs485m for 413 employees during the same period.
High Costs of Private Recruitment Services
The costly use of private recruiters has raised questions about the value for money in public service recruitment. According to the report, the unit cost of hiring one person through outsourcing was Shs9m, while internal recruitment costs only Shs1.9m per person. “External recruitment of staff per year was found to be five times more expensive than internal recruitment,” the report states.
This study, which covers 20 government departments and agencies from the 2018/2019 to 2022/2023 financial years, shows that several agencies are spending heavily on outsourced recruitment. Among the highest spenders were the Uganda Bureau of Statistics (Ubos) and the Electoral Commission (EC), which paid millions to private firms for recruitment.
Justifications for Outsourcing Recruitment
Some government agencies defend their use of private firms, claiming outsourcing helps manage large volumes of applicants and tight deadlines. Others argue that outsourcing is necessary for filling senior positions that require specialized skills, minimizing internal interference, and addressing understaffing in HR departments.
However, the report points out that recruitment agency fees alone consumed 62% (Shs1.3b) of the total outsourcing costs. Other expenses, like advertising fees (Shs322m) and ICT costs (Shs105m), further inflated the total.
Private Recruitment’s Focus on Qualifications
The IGG also raised concerns about the recruitment process used by private firms. These agencies often prioritize academic qualifications and work experience, overlooking essential public service competencies like integrity checks and background verification. Some agencies have had to retain control over final interviews to influence candidate selection.
Recommendations for Improvement
The IGG recommends amending the Public Service Act, 2008, to harmonize recruitment processes across all government entities. The report calls for automating recruitment, strengthening HR capacity in MDAs, and prioritizing internal recruitment to reduce costs.
By improving HR practices and investing in internal capacity, the report suggests that government agencies can reduce their dependence on expensive private recruiters. Internal recruitment is a more cost-effective alternative that can be implemented in many cases.