A type of business model that comes under process outsourcing (BPO). In which an employer transfers an entire or some part of its recruitment process to a third party is the need of today’s world. This is known as recruitment process outsourcing (RPO) according to the Recruitment Process Outsourcing Association (RPOA).
Recruitment Process Outsourcing can either give you its own team or assume responsibility for the company’s processes, technology, or reporting. The fact that RPO takes responsibility for the administration and design of the entire recruitment process. As well as the outcomes make it different from other options such as staffing firms and contingent/ retained search firms.
Moreover, An RPO provider might work as an extension of a company’s HR or resourcing department. Sitting on the client’s premises and delivering a comprehensive hiring solution. An RPO provider can supply the employees, technology, and process required to meet a client’s recruitment needs.
How does Recruitment Process Outsourcing (RPO) work?
To transform a firm’s talent acquisition function, an RPO quality recruitment outsourcing program combines specialized recruiters, technology, and best practice hiring procedures. RPO solutions, which are aligned with your hiring managers, handle the entire recruitment process. From forecasting to sourcing, assessing, placing, onboarding, and reporting, using expertise, cutting-edge technology, and key performance indicators.
Recruitment Process Outsourcing solutions can drastically cut cost-per-hire, time to hire, and attrition. As well as measurably increase hiring quality, reporting, and scalability, resulting in a far larger return on investment.
Recruitment Process Outsourcing Flowchart
- Recruitment Planning, which entails the creation of a detailed job description that outlines the position’s responsibilities. As well as the skills, experience, and qualifications that the candidate must possess, as well as other pertinent information.
- Create an effective plan for recruiting people for the organization. Taking into account factors such as internal or external hires, as well as the recruitment method to be used.
- Searching for possible applicants and the methods utilized to pique people’s interest in applying for opportunities within the company. Recruitment is fairly performed with the help of external or internal sources.
Internal Sources: Promotions, former workers, internal advertisements, etc.
External Sources: Newspaper advertisements, the Employment Exchange, and campus walk-ins, etc.
- Candidates for the post are screened based on their qualifications and criteria. These are made possible by supplying details such as the job description and working circumstances for a given role.
- This is the process of selecting and inducting a new employee into the company.
Benefits of Recruitment Process Outsourcing
Today’s recruiting situation is quite complicated. You must traverse a tight labor market and become knowledgeable in a set of essential technologies. Moreover, you should manage and nurture prospects and hiring managers in order to efficiently recruit top employees.
RPO providers are subject-matter specialists who specialize in talent acquisition. They understand how to handle the recruiting marketplace, are up to date on the newest recruiting technology. They have the means to increase recruiting capacity to meet demand. People, technology, process, and metrics are all brought together in an RPO’s talent acquisition operation.
RPO has offered firms with a high hiring volume at a lower cost, according to the Recruitment Process Outsourcing Organization. This procedure has progressed to the point that it can now be used by medium and small businesses for all of their recruiting needs.
While the terms “staffing” and “recruitment” are sometimes used conversely. Staffing is a word used when people must be hired quickly and on short notice. Flexi Staffing is a type of staffing that is used to fill certain tasks on a temporary or contract basis.
On the other hand, the selection of an employee for a permanent position is referred to as recruitment. It is done more strategically. Staffing agencies and recruitment organizations, respectively, are used to outsource both of these procedures.
Outsourcing Recruitment Advantages and Disadvantages
The potential drawbacks that come with Recruitment Process Outsourcing cannot be ignored. We have mentioned some of the cons and pros below.
- As mentioned above, there are a lot of advantages attached to RPO. However, it would only benefit your company if you get the exact desired quality. Anything that does not go with your imagined idea would be a waste. This isn’t to imply that you can’t successfully outsource specific tasks; nevertheless, you must first negotiate the desired quality.
- There is always a chance that your company’s private information might get exposed via a third party. Especially when you outsource recruitment agencies, human resources, or payroll.
- You cannot expect total control in your hands with your outsourcing in order to hire someone. Even though you can still provide the third party with your instructions. However, you still have to let go of some control. Since the vendor is not working on-site with you, it becomes difficult to maintain that control.
- Some of the frequent problem areas if you don’t choose a suitable outsourcing partner are extended delivery times. Along with sub-standard quality output, and incorrect responsibility categorization. It is sometimes easier to control these factors within a company rather than with an outsourced partner.
- When you have to hire an employee on your own, it might get tough. Since you have got limited options to select from, you will most likely settle for a mediocre fit for the job role. On the other hand, many businesses have realized that outsourcing allows them to acquire talent from all around the world. This enables them to select the best of the best for their organization.
- Outsourcing the supporting processes frees up time for the company to focus on its primary business.
- An outsourced vendor would be equipped with specialized techniques and required technological experience that is used for efficient results. This is why it is suggested to assign duties to someone who has expertise in that field. Tasks can be accomplished more efficiently and with higher quality results when you involve the ideal outsourced agent for your organization.
How To Improve Your Hiring Process With RPO
Recruitment Process Outsourcing (RPO) can enhance your company’s present resources and deliver the assistance you need when you need it. This can provide a solution that allows you to concentrate on your core business. While leaving your staffing needs in the hands of professional recruiters.
In order to implement the RPO methods effectively, there are a few points that are needed. In order to improve your hiring process with RPO.
- Efficient Employer Branding: Your brand value should emphasize why candidates would want to work for your company. In this situation, a recruitment marketing plan that reaches target candidates creates momentum through automated campaigns. Moreover, it provides data-driven insights for continual development that can be discussed with an RPO company. Your RPO partner must be able to successfully attract and recruit top candidates via a streamlined hiring process.
- Create Short but Smart Hiring Process: You wouldn’t want 50 + candidates to fill the application form. Later, just to find out that only 10 were serious about the job role. The goal should be to filter applicants in rather than out in the early stages of the recruitment process.
An RPO partner can assist in the creation of a process based on their industry experience and benchmarks. Regular check-ins from the recruiter, as well as clear timetables for decision making, should all be part of the process.
- Promoting Humanized Meetings/Conversations: While email is still useful for sharing documents and offering help, it cannot replace in-person conversations with the applicants. The same principle applies to automated processes. On the other hand, an RPO agent will most likely conduct in-person conversations.
This is mainly for two reasons: To sell the good side and perks of the company. Second, to learn about the candidate’s experience and professional aspirations in order to see if the two are a good fit.
Is the Recruitment Process Outsourcing (RPO) Right For You?
Traditionally, RPO supplied big enterprises with high-volume hiring under a smaller cost package as compared to the other recruitment solutions. However, in the last few years, Recruitment Process Outsourcing has become a flexible strategic talent acquisition solution. That too, comes with many additional benefits. These benefits are not just for big companies but small or developing businesses can also avail them.
Mike Tastle and Michael Palmer discuss in a webinar that smaller businesses face significant challenges in terms of managing hiring capacity and changing demands. In smaller businesses, human resources staff have a lot on their plate. Including managing employee relations, training, payroll, compensation, and benefits, as well as hiring and recruitment. Smaller businesses also have a more variable number of hires throughout the year. Making it difficult to staff an internal recruiting team to meet demand.
Hence, it is not always a good option to approach RPO if you are a small business. Based on your hiring needs and the budget that you are willing to spend. A company should decide if RPO is the right choice for them.