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Expert Advice + Resources
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Is RPO Right for Your Organization?
THE BENEFITS OF RECRUITMENT PROCESS OUTSOURCING
What is RPO?
RPO is when an employer transfers all or part of its recruitment processes to an external service provider. This partnership may be limited to staffing, but also usually includes efforts to optimize cost, quality, and efficiency.
It differs from the services offered by traditional staffing companies. In addition to filling jobs, RPOs improve recruiting processes while looking at staffing metrics, technology, and scalability. RPO providers also provide valuable insight into enhancing the candidate experience and employer brand.
RPO first came into play in corporate America in the 80s and 90s when outsourcing HR functions, such as taxes and employee benefits, became prevalent. Because recruitment was a significant cost to HR, many organizations began outsourcing. Over the years, the demand to quickly hire quality talent continued to increase, resulting in the need to create a new model for acquiring talent.
What Services Does RPO Include?
RPO is not a one-size-fits-all solution. The services offered are highly customizable. While one employer may use an RPO to supplement their existing recruitment team, another may use an RPO to hire on-demand during seasonal or temporary hiring spikes.
RPO agreements can be categorized into three types:
- Program outsourcing: provider manages hiring for a specific division or job type
- Project outsourcing: project-based recruiting with a start and end date
- Total outsourcing: provider manages and provides the entire recruiting and hiring process
For example, if you need help hiring customer service reps, that’s program outsourcing. If you need 300 people immediately, that’s project outsourcing. If your entire HR department needs assistance, that’s total outsourcing.
The services offered by an RPO are designed to improve what you are already doing. Some of the services a provider might offer include: For example, if you need help hiring customer service reps, that’s program outsourcing. If you need 300 people immediately, that’s project outsourcing. If your entire HR department needs assistance, that’s total outsourcing.
The services offered by an RPO are designed to improve what you are already doing. Some of the services a provider might offer include:
- Candidate sourcing
- Process mapping
- Hiring manager training
- Interview training
- Compliance tracking
- Third party vendor management
- Onboarding
- Employee referral program development
- Employee surveys
What Services Does RPO Include?
1. Subject matter expertise.
2. Cost and time savings.
3. Scalability.
Seasonal demands, new projects, and new processes can create urgent hiring needs. Organizations can quickly find themselves understaffed which can lead to a number of costly consequences, including lost revenue due to lower production, excess overtime, and low staff morale.
RPO Success Tips Successful RPO partnerships rely on honest, open communication by both parties. Before you enter into an agreement with an RPO provider, keep these two tips in mind:
Choose the right vendor. In order to achieve the recruitment and hiring goals you’re after, it’s important to choose the right RPO for you and your organization. Most RPO relationships are long-term, so select someone you enjoy working with.
Look at RPO as a partnership. RPO is much more of a relationship than most outsourcing services. It’s important to view RPO as an extension of your HR department, not simply an outside vendor. You need to give the RPO provider license to be part of your organization and immerse into your company culture in order to fully understand your needs. RPO provides scalability to manage inevitable peaks and valleys in recruitment activity. It gives you access to the right talent precisely when you need it. This scalability also allows businesses to convert the fixed cost of in-house recruiting to a variable cost that adjusts as needed.
4. Access to technology and tools.
5. Compliance.
- RPO Success Tips
