The traditional approaches to recruitment are evolving. As businesses strive to attract and retain top talent in a competitive market, many organizations are turning to recruitment process outsourcing (RPO).
It’s a strategic solution to streamline processes, enhance candidate quality and drive cost savings.
Whether you are exploring the concept of RPO for the first time, or seeking to enhance your recruitment process, use our guide to explore the benefits and see if it’s right for you.
We’ll delve into best practices and real-world examples to illustrate how organizations have successfully leveraged RPO to optimize their recruitment processes and achieve their talent acquisition goals.
What Is Recruitment Process Outsourcing?
Recruitment Process Outsourcing is where an organization entrusts some or all of its recruitment processes to a third-party provider. RPO works just like an in-house recruiter would for a business, only off-site.
Outsourcing this process is designed to streamline and optimize recruitment by leveraging the expertise, resources and technology of outsourced talent. It relieves employers and HR professionals of administrative burdens and seamlessly integrates new talent into your team.
Why Use Recruitment Process Outsourcing?
People are what drive your business. RPO helps you find the right people to help your business thrive.
Some of the top reasons to outsource your recruitment process are:
- Scalability and flexibility: Recruitment needs can fluctuate based on business demands. RPO offers scalability and flexibility to ramp your hiring up or down—without the need to hire and fire temporary staff. It allows you to have a team that grows with you, with the right talent at the right time.
- Access to a larger talent pool: RPO providers have extensive networks and sourcing capabilities, enabling access to a larger and more diverse talent pool. They allow you to employ a world of talent, and not just candidates close to your office.
- Faster hires: Recruitment processes can be time-consuming, especially when internal teams are managing the responsibilities of multiple positions simultaneously. RPO streamlines the hiring process, leveraging efficient workflows, technology and dedicated recruitment resources to accelerate the time to fill positions.
Common RPO Services
Some common RPO services include:
- Talent sourcing and candidate screening
- Executive search
- Candidate engagement and relationship management
- Interview coordination
- Assessment and selection
- Background checks and reference verification
- Offer management and negotiation
- Onboarding support
- Reporting and analytics
- Managing compliance and legal considerations associated with hiring
The Benefits of Recruitment Process Outsourcing
Here are a few major benefits of working with an RPO:
One of the major benefits of RPO is saving money. By outsourcing non-core positions, organizations can save big on expenses related to hiring and training in-house staff and maintaining infrastructure.
Companies can save on hiring and training in-house staff while avoiding administration fees, added office expenses or any other unnecessary costs—giving your business access to specialized skills and resources at a fraction of the price.
RPO providers stay up-to-date on employment laws, regulations and industry best practices. They ensure compliance throughout the recruitment process, minimizing the risk of legal issues and maintaining ethical standards. Take the complexity out of difficult hiring regulations, conducting background checks and adhering to fair employment practices with an RPO.
Scalability and Flexibility
RPO provides organizations with the flexibility to scale their recruitment efforts based on their needs.
Whether it’s handling sudden increases in hiring volume or adjusting recruitment resources during periods of lower demand, RPO can adapt to the organization’s changing requirements—without the costly overhead and time wasted on hiring and firing temporary staff.
This scalability ensures that recruitment processes remain efficient and effective, allowing businesses to hit their growth goals.
Downsides Of RPO
Loss Of Control
By outsourcing recruitment processes, organizations relinquish some control over the hiring process.
When recruitment is outsourced, there is a loss of immediate oversight over the work being performed. Hiring managers that prefer in-person communication may need some time to adjust to remote communication with an RPO.
Potential Communication Challenges
Communication is key to a successful recruitment process. When working with an external RPO provider, organizations need to establish clear lines of communication and ensure that expectations, timelines and feedback mechanisms are effectively communicated. Communication challenges, such as different time zones or language barriers, can arise when working with offshore RPO providers.
The Cost Of RPO
Employers generally pay for RPO in one of the following ways:
Cost Per Hire (CPH) is a key metric used in human resources and recruitment to calculate the average cost incurred by an organization to fill a job vacancy with a new employee.
The calculation is essentially the total expenses associated with the recruitment process.
Related: How To Calculate Cost Per Hire
Fixed Monthly Fee
The business plays a flat fee to the RPO provider monthly.
Monthly Fee Plus Cost-Per-Hire
This is a combination of the above two, combining the consistent recruiting effort under the management fee, with payments for new hires.
Employers are charged for each interview and background check. Buyers opting for on-demand RPO services or even consulting RPO services may be charged per transaction, whether it’s an hourly rate or for each process or successful candidate.
How to Choose The Right Organization And Service
- Define your objectives: Determine the specific challenges you want to address through RPO, whether it’s reducing time-to-fill, improving candidate quality or enhancing the overall recruitment process. Understanding your objectives will help you evaluate potential RPO providers based on their ability to meet your specific needs.
- Expertise and experience: Assess the RPO provider’s expertise and experience in your industry or specific job functions. Look for providers with a proven track record of success in attracting and hiring talent in your field. They should have a deep understanding of the skills and qualifications required for your positions and be able to demonstrate their ability to source and screen high-quality candidates.
- Choose the right RPO. Once you have your top pick, evaluate the cost structure and pricing model of the RPO provider. Consider not only the financial aspect, but also the overall value the provider brings to your organization.
What is an RPO?
Recruitment Process Outsourcing (RPO) is where an organization entrusts some or all of its recruitment processes to a third-party provider. RPO works just like an in-house recruiter would for a business, only off-site.
What is the difference between RPO and BPO?
RPO is outsourcing for a specific service, where business process outsourcing (BPO) is more broad. Clients who work with a BPO can opt for additional services like call scheduling, data entry and other administrative support functions outside the scope of an RPO.
What do RPO companies do?
RPO partners provide comprehensive assistance throughout the talent acquisition process, offering strategic direction and operational support.
They cover a wide range of activities, including job advertising, resume screening, conducting interviews, conducting market analysis, specialized recruiting for niche positions, and much more.