What is Recruitment Process Outsourcing (RPO)?

The job market presents unprecedented challenges, and it is upto every employer or HR professional to develop the best recruitment strategy to attract top talent. Of course, you need to ensure that you have the best brand marketing team since a good reputation is the key to hiring highly talented candidates. Additionally, you need reliable recruiters with extensive knowledge and experience to help you find the right candidates for various open positions. Keep in mind that every HR professional has their recruitment needs, and if you are looking for more flexibility and speed, you should try recruitment process outsourcing (RPO). So, what is RPO recruitment? Well, this article explains everything you need to know about it and its benefits.

What is RPO?

Recruitment process outsourcing is whereby a company partners with an external service provider and transfers part of or all its recruitment processes to them. This is in accordance with the Recruitment Process Outsourcing Association (RPOA). The best element about partnering with an RPO provider is that they permanently take over the hiring process management. Typically, this means that they need to have recruiters onsite, whether sourced from their own companies or from your organization, to meet your hiring needs fast. They will also assume responsibility for any adverse outcome in the recruitment process and act on them accordingly.

What are Recruitment Process Outsourcing Benefits?

In today’s tight labor market, recruiting the right candidate for a specific position is challenging. However, with RPO providers, you are guaranteed the best results within a short duration due to their competency and experience in the job market. Take a look below at more reasons you should consider incorporating RPO services in your hiring procedures.

1. Top Talent

As mentioned earlier, RPO professionals help you source the best candidates since they know how to navigate the job market. They also have databases and schemes to attract all types of top talent, including the ones that were previously ignored. What’s more, RPO providers ensure they create a talent pool so that they know exactly where to look in case of an arising job vacancy. 

2. Cost-Effective

RPO solution is more cost-effective compared to the traditional staffing methods. This is because RPO Professionals ensure you meet the best talent that will be available for a few more years to come, thus reducing hiring costs. Also, RPO providers ensure that an open position does not remain open for more extended periods as this may increase productivity costs due to a decreased staff. 

3. Guaranteed Fast and Scalable Permanent Recruitment

RPO solution is fast, and employers are guaranteed candidates willing to work long term. Therefore, if you are starting a new company and are looking for permanent staff, RPO providers are your best solution. Of course, there are times when you will stay for months without a single hire. But with RPO providers’ unique structures to help a business adapt to such situations, you will gain the certainty you need when sudden hiring activity comes up. 

4. Compliance With Employment Laws

Every country has its own employment laws, and it is crucial that you remain in compliance to avoid legal encounters. Since employment laws keep changing from time to time, keeping up with what you should comply with can be tricky. However, with an RPO solution, you are guaranteed a hiring process that complies with various local laws, regardless of the region you are hiring from. 

5. Elevates Employment Brand

RPO providers will market your business to potential candidates so that they may easily decide to work for you. At the same time, they are promoting your business brand to potential clients, leading to increased demand for your goods and services. 

What is the Difference Between RPO providers vs Traditional Staffing Agencies?

You must be wondering how RPO solutions differ from the traditional staffing agencies. Unlike traditional staffing agencies that fill various positions based on an ad hoc basis, RPO providers are more viable and available permanently. They are also very strategic and bring more value that the traditional staffing agencies couldn’t, including:

1. Recruitment planning and analysis based on your hiring goals

2. Sourcing and engaging potential employees through various activities

3. Assessing candidates to ensure they are the right fit for an open position and blend with your business culture

4. Manage candidates to ensure they have the best experience during the recruitment process

Types of Recruitment Process Outsourcing (RPO)

RPO comes in different engagement models to suit all types of businesses. According to John Younger, an RPO expert and co-founder of the Recruitment Process Outsourcing Association (RPOA), there are three types of RPO, including:

1. Full RPO

This recruitment provider takes full responsibility for a company’s hiring processes permanently. They have full access to your business resources and model so that they can always find a candidate that fits right into your business culture.

2. Function-Based RPO

Unlike the Full RPO, a function-based RPO doesn’t take the entire company’s recruitment needs but only a part of it. For instance, you can hire a function-based RPO provider to fill positions in the finance department or a company’s entire division. 

3. On-Demand RPO 

This RPO is a contract between a company and an RPO provider that specifies the number of roles needed to be filled within a specific period. The RPO provider is thoroughly familiar with a company’s operations, hiring processes, and expected results. 

Conclusion

RPO providers with an excellent recruitment process outsourcing flowchart enhance your recruitment process, thereby giving you a competitive advantage. As a result, you have an increased chance of meeting top talent who are willing to work for more years to come. Simply put, the right hiring procedure leads to a happy and healthy work environment. If you wonder whether this recruitment solution is suitable for your business, then worry not because it benefits both small and large enterprises. You simply need to identify the type of RPO ideal for your hiring needs. This is especially if your business hires permanent staff regularly.